Groupe Danone has played down the prospect that it is ready to sell its stake in Indian biscuit venture Britannia Industries amid a spat with its local partner.
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Reports in India claimed that Danone could sell its 25.5% stake in Britannia, perhaps even to a third party should it fail to reach an agreement on the business with co-shareholder, the Wadia family.
Relations between the partners have believed to have soured after the Wadias took Danone to court in Mumbai, alleging that the French group’s stake in biotech firm Avesthagen violated a non-competitive clause in their venture agreement.
A Danone spokesperson in Paris told just-food today (28 June) that talks on the future of Britannia are continuing. “Discussions are ongoing and both companies are analysing the alternatives to find a solution favourable to both parties,” the spokesperson said.
The spokesperson said the sale of Danone’s stake is “one solution among others”. She added that it is “difficult to say” how long the talks could last.
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By GlobalDataWadia has also threatened legal action against Danone over the company’s use of Britannia’s flagship brand, Tiger, in international markets.
Danone sells the Tiger brand, which was established in 1995 by Britannia, in Indonesia, Malaysia, Singapore, Pakistan and Egypt. It has reportedly registered it in 70 other countries.
