Wadias Buy Danone’s Stake In Britannia, Ends Partnership In India

By TEAM VCC

  • 16 Apr 2009

The Nusli Wadia Group announced that it has bought its French partner Groupe Danone's equal stake in biscuit major Britannia Industries for an undisclosed amount. This also brings to an end one of country's long running business partnerships.

As part of this agreement, Danone has sold its 50 per cent interest in ABI Holdings Ltd (held through Britannia Brands Ltd) to the Wadia Group. ABI Holdings Ltd now holds an effective 50.96 per cent interest in Britannia Industries Ltd. This will enable Danone to pursue its business interests in India independently.

According to a press release, this agreement also “sees an end to the intellectual property dispute over brand Tiger between Danone and Britannia.”

Mr Franck Riboud, CEO of Groupe Danone, said, “Thirteen years of collaboration between the Wadia Group and Groupe Danone in Britannia helped to build a strong and respected leader in the Indian biscuits industry. We are fully confident that Britannia will continue to be highly successful in the future. Danone is more keen than ever to contribute to the development of the healthy food market by implementing Danone brands in India in the coming years.”

Mr Nusli N. Wadia, Chairman of Britannia Industries, said: “Wadia Group is pleased with this acquisition. Over the last nine decades, Britannia has created a rich heritage of brands and a strong corporate reputation which has seen several ownership changes. In the last few years, the trajectory of investment and growth has accelerated.  The company is led and managed by a competent team of professionals, who will continue to explore profitable growth opportunities in food – both in India and overseas.”