Britannia to share data with ABIH

BANGALORE/ NEW DELHI: The Nusli Wadia-led Britannia Industries (BIL) has decided to consolidate its quarterly figures with Associated Biscuits International Holdings (ABIH), which has now emerged as the majority shareholder, and not with its foreign partner Groupe Danone directly.

This follows the promoter shareholding consolidation that gives ABIH a majority 50.96% stake in the Indian biscuit giant, sources said. ABIH is almost equally owned between Wadia Group and Danone with the former holding a shade over 50% stake.

In the last one year, Associated Biscuits International (ABIL), which holds 45% stake, and five Singapore-based entities with 1.17% stake each were consolidated into ABIH, giving it majority interest in Britannia.

ABIH has been an existing shareholder since 1999, but its role as a majority player in Britannia assumes significance now. In the last 14 years, Britannia has been consolidating its financial
figures with Danone primarily because there was no single entity holding a majority interest in the company.

“But now since ABIH has emerged (as the majority shareholder), Britannia has been sending figures to it and it is up to them to consolidate the figures with Danone,” sources added. Britannia was unavailable for comments, even as an e-mail query to Danone remained unanswered.

Observers said the emergence of ABIH as a majority stakeholder would prove to be interesting as it could now assume the role of a parent.

Earlier, Danone had stated that it could not consolidate the Asia-Pacific figures as Britannia’s data was not revealed.Danone, sources added, was prompted to make the statement to comply with Sarbanes Oxley Act and to prop its overall growth figures.