Biscuit battles

Industrialist Nusli Wadia’s long-standing battle with French food giant Groupe Danone has finally come to an end. In a $200 million transaction, Leila Lands (Mauritius), a 100 percent subsidiary of Wadia Group company Bombay Burmah Trading Corporation, will buy out Danone’s 25.48 percent stake in biscuit major Britannia, giving the Wadias majority control. The deal, which was announced on April 6, 2009, also brings to an end the partnership between the two Groups which had begun in the 1990s.

Nusli Wadia: controlling Britannia

The Wadias had dragged Danone to a court in Singapore a couple of years ago in a dispute over Intellectual Property Rights over the Tiger brand of biscuits, claiming compensation from Danone for selling the brand as its own internationally. The Wadias had also objected to Danone’s minority stake in biotech company Avesthagen which they said violated a "no competition” clause in their joint venture agreement. The buyout is expected to end all outstanding disputes.

"The Wadia family is raising debt from ICICI Bank for buying out the Danone stake through a combination of corporate guarantees and pledging of direct and indirect promoter holdings in Britannia Industries, people close to the situation said,” reported The Economic Times, April 7, 2009.