The Hindu Business Line : Amul stays cool to Hershey overtures

Ahmedabad April 18 Feeling two-timed by Hershey which kept it in the dark while picking up a majority stake in Godrej Beverages and Foods Ltd (GBFL) last month, Amul has virtually cold-shouldered the US chocolate-maker's placatory moves, and no one from the Anand-based milk cooperative is visiting Hershey's American plant.

"No, we have not decided yet on Hershey's invite e-mailed to us," Mr B.M. Vyas, Managing Director, Gujarat Milk Marketing Cooperative Federation (GCMMF), makers of Amul, told Business Line over telephone from Anand .

Asked if Amul would explore any alternative to Hershey, he said, "We are not desperate. It was Hershey that came to us, not the other way round. In any case, we already have our marketing network in the US and selling products worth Rs 15-20 crore per annum in that country."

Visit to Anand

Indeed, Hershey seemed keen on a tie-up with Amul. Mr Ted Jastrzebski, Hershey's Vice-President (International Finance & Planning), had visited Anand in April last year to explore a business alliance. He had felt that Amul's accomplishments provided an impressive story of cooperation. He was glad that he had visited Anand and thanked Amul for giving Hershey the chance to learn this history, sources said.

Four months later, in September 2006, he was back in Anand along with Mr J.P. Bilbrey, President (International Operations) and two Indian executives, and invited Mr Vyas and others to visit the Hershey plant in the US. Even as Hershey was wooing Amul for a distribution alliance, it was seeking permission from the Foreign Investment Promotion Board to strike a joint venture with GBFL, which it did last month.

But this joint venture did not apparently prevent Hershey from taking another shot at Amul. In an attempt to mollify the Indian biggie, or perhaps as a face-saver, it sought to resume business talks and re-invited Amul officials to visit the US for negotiations onworking together.

This Amul has chosen not to respond to, sources added.

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