Jubilant Foodworks, which already runs Domino's Pizza in India, said in a statement that it had signed a master franchisee agreement with the international subsidiary of Dunkin' Donuts.
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The deal envisages the opening of up to 30 retail outlets over the next three years, serving a coffee and donut menu "suited to the Indian taste buds", said Jubilant chairman Shyam Bhartia.
Despite its reputation for tea, India has a long-standing coffee-drinking tradition, particularly in the southern state of Tamil Nadu where it is often brewed overnight, then mixed with milk and sugar before being served.
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But old-school cafes like the 53-year-old Indian Coffee House chain, which popularised south Indian filter coffee, are now struggling to make a profit while hipper, Western-style chains are opening outlets every month.