A disagreement between Danone and the Wadia Group is reportedly holding the French dairy firm back from setting up a dairy and water business in India.
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India’s Wadia, tied into food processing firm Britannia with Danone since 1990, could stop Danone’s plans by pressing for its right of first refusal.
According to a report by the Economic Times, Danone and Wadia made an agreement covering all investments and acquisitions in the food and beverage sector. One of its clauses was that Danone could only go ahead with an opportunity if Wadia was not interested in pursuing it, the Indian newspaper reported.
Danone could require a no-objection certificate (NOC) from the Wadia group to go ahead with its plans.
Local reports say that Wadia has involved the Mumbai High Court over Danone’s investment in an Indian company without obtaining an NOC, arguing that the spirit of the JV was being frustrated.
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By GlobalDataThe French company was unavailable for comment when contacted by just-food today (17 January).
