Starbucks, India’s largest coffee company, is mulling a $1bn cash infusion and $2bn in new investments in the country.
The move comes after a wave of consolidation and an expansionist strategy from the company.
The firm has also announced plans to open a new store in the Indian capital, New Delhi, and invest up to $1.4bn in the city.
Starbucks said the new investments would support growth and diversification across its global business.
It said the expansion would be powered by a strong customer base, new products and services, and increased investment in the local and international supply chains.
However, there was a murmur of concern from some shareholders.
The company’s shares fell 7% on Thursday, following the announcement.
The Indian government has been taking steps to attract foreign investment.
Prime Minister Narendra Modi is expected to visit the US this week and India’s chief economic adviser Kailash Satyarthi is set to meet with US President Donald Trump in New York.