The company, however, will continue to supply coffee to Barista through a long-term supply agreement.
Lavazza in a statement said it has decided to lay greater focus on its core business, which is coffee.
Commenting on the announcement, Lavazza CEO Antonio Baravalle said: "The decision to move out of Barista has been taken accordingly with the global business guidelines of the group to no longer manage directly the coffee shop business."
Talking about the Indian market, Baravalle said: "India continues to remain an extremely important market to Lavazza's international operations and it is strategic to the brand's overall growth initiatives across the world."
He added that Lavazza will continue to develop its our presence in the country.
The company has a production facility in Sri City in Andhra Pradesh, its only production facility outside Italy.
Lavazza bought the café brand Barista in 2007 and has sold the coffee shop chain with over 190 cafés to Carnation Hospitality Pvt Ltd. In the deal, Lavazza has been assisted by Rothschild, as financial advisor, and Desai & Diwanji, as legal advisor.
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