French food group Danone could be ready to pull out of its biscuit production joint venture with India’s Wadia family, a report in the Indian newspaper the Economic Times has suggested.
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The report suggested that relations between the two partners have soured during the past year after the Wadia group took Danone to court in Mumbai, alleging that the French company’s strategic stake in biotech firm Avesthagen violated a non-competitive clause in their joint venture agreement.
The newspaper also said that Danone is keen to build an independent Indian operation, and growing “impatient” over the Wadia issue, was willing to compensate the family for termination of the joint venture. Danone’s share in the venture is thought to be worth more than US$245m.
“We are willing to take radical steps to pursue our own plans,” the paper quoted a Danone official as saying.
When asked about the report, Danone told just-food: “Following the information published today by the Indian media, Groupe Danone wishes to inform that discussions with Wadia Group are still ongoing and that both companies are analysing together all alternatives to find a favourable solution for both parties.”
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By GlobalData“We are addressing the current issues with our Indian partner,” said Groupe Danone secretary general Philippe Loïc Jacob. “This is our priority as we wish to continue developing our activities in India. Indeed, Groupe Danone ratifies its interest in the Indian market, where it started investing more than 15 years ago.”
