...where both seem blinded by legal gains, thus forgetting there are real ‘competitors’ to contend with

IIPM MANAGEMENT INSTITUTE
Silent waters run deep – a cliché pertinent to the recent developments in the Food & Beverage (F&B) industry in India. And here we are talking about the discord between the Wadia Group and its French JV partner – Groupe Danone, which has (as reported by a leading Indian pink daily newspaper) agreed to return the Tiger brand to Britannia in a move to resolve the bitter long-standing issue of royalty payments between the two partners, subject to certain clauses .

The two companies have been at constant loggerheads over some issue or the other since 2002, since Sunil Alagh exited as CEO of Britannia Industries after a heated disagreement between the Wadias and Alagh-led management. Danone has never been too pleased with this turn of events. On the other hand, the Wadia camp argues that as Danone registered the Tiger trademark in 74 countries, it was not brought to their official notice despite the brand having been created by Britannia in the 1990s. Moreover, Britannia even refused to reveal price sensitive information to Danone for the first time in August this year, due to which the latter did not book Britannia’s sales for its Q3 consolidated results. Clearly, rift s showing in this 12-year old alliance.

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Source : IIPM Editorial, 2006

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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