Doors still open to talks with Danone: Wadias

Britannia Industries is keeping the channel open for negotiations with Groupe Danone for getting back the intellectual property rights (IPR) of the Tiger brand. Britannia has filed cases in Singapore and Malaysia against Groupe Danone for unauthorised use of Tiger brand by the latter’s subsidiary Generale Biscuit last year. Speaking on the sidelines of Britannia’s AGM here on Monday, Britannia chairman Nusli Wadia said that the firm is hopeful of an early solution of the IPR case. Later, Britannia CFO Durgesh Mehta said Wadia is in touch with Danone on the subject. “Our chairman knows the Danone people for a long time. He is discussing the issue,” Mehta said. Neither Wadia nor Groupe Danone’s representative on Britannia’s board Francois Xavier Roger, though, were willing to comment on the likely sale of the French dairy major’s stake in Britannia to the Wadias. Groupe Danone and Wadia group hold 50.96% in Britannia through Associated Biscuits International (ABIL), a subsidiary of UKregistered ABI Holdings. ABI Holdings is 50:50 JV of Groupe Danone and the Wadias . There is speculation that Danone will sell its stake as the French major has already come out of the biscuit business globally, except in India and Latin America. Meanwhile, Mehta said that Britannia has lost 2% marketshare in the biscuit category nationally to ITC and other unorganised players. Britannia now has a 34% value share and 31% volume share of the Rs 8,000-crore biscuit market. “We are constantly expanding our product portfolio to get back the lost marketshare.The company has introduced 20 new products in last two years,” Mehta said. He added that the company is planning a capital expenditure of Rs 75-100 crore in the current fiscal. By Ms.Bobby Aanand, Metropolitan Jury

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