The Hindu Business Line : Danone sees early end to dispute with Wadias

Table talk
A lot of work to be done in the dairy & beverages biz: Danone.
Keen to get Wadia-BSN venture annulled.
Says it has no plans to enter the biscuits business here.

Paris June 20 A settlement to the dispute between the Wadias and their estranged partner, the French foods major Groupe Danone, could be round the corner. Talks are progressing smoothly and a settlement could be reached by the end of July, according to Mr Philippe-Loic Jacob, Secretary-General, Groupe Danone.

The urgency and eagerness of Groupe Danone to enter the dairy and beverages business in India is what appears to be driving a quick settlement.

Speaking to a group of visiting journalists from India at the global headquarters of the company here on Wednesday, Mr Jacob, who ranks number three in Groupe Danone's hierarchy, said: "We hope to settle our differences with Mr Nusli Wadia by the end of July. All options are on the table and we are in discussions where there is no taboo on what can be done or not done. Time is important for us and we have a lot of work to do in dairy and beverages in India."

While Groupe Danone is keen to get the Wadia-BSN joint venture agreement annulled and out of the way, it is open to both possibilities regarding its equity investment in Britannia Industries that is to buy out Mr Wadia or sell its own stake to him.

Wadia-BSN is the original joint venture agreement signed between the two parties in 1995 and Groupe Danone is keen to get this annulled so that it would not be fettered in its independent foray into the country.

Though the joint venture has been inactive since its formation — all it has are 400 shares of Britannia as investment in its books — the feeling in Groupe Danone is that it is prudent to get it legally rescinded before embarking on the independent foray.

"For us the priority is Wadia-BSN. What matters to us is the ability and freedom to do business in India," Mr Jacob said.

The dispute over the Tiger brand is part of the discussions and Groupe Danone will be talking to the IPR committee of the Britannia board to explain its position. Mr Jacob clearly said that Groupe Danone has no plans to enter the biscuits business in India.

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