Britannia to take legal action against Danone
Britannia Industries Ltd will take legal action against French food giant Group Danone, for unauthorised use of the Tiger biscuit brand in other countries.
By PTI |
KOLKATA: Britannia Industries Ltd on Wednesday said it will take legal action against one of the promoters, French food giant Group Danone, for unauthorised use of the Tiger biscuit brand in other countries.
The board would take a decision once the IPR (intellectual property rights) sub-committee submitted its view to it, Britannia chairman Nusli Wadia told reporters on the sidelines of the company's AGM here.
A meeting of the committee was scheduled for the day.
The Tiger brand, he said, had been created and developed in India by Britannia. He said subsidiaries of Group Danone had been using the brand in several countries without seeking authorisation from the company.
Managing Director of Britannia Vinita Bali said Danone had applied for registration of the Tiger brand in 70 countries in Europe, Latin America, Asia and Africa.
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"We are seeking legal counsel both in UK and India for initiating a case," she said. Danone had been using the Tiger brand in other countries since 1998.
Through Associate Biscuits International Holdings UK, where Group Danone and Nusli Wadia hold 50 per cent stake each, the foreign promoter holds almost 25 per cent in Britannia. Total public shareholding in Britannia is 49.04 per cent.
Bali said the company would seek to get the brand back under its fold first, following which Danone would be asked to pay compensation to Britannia. She also said there was also conflict of interest of the Danone nominee directors on the board of the company.
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"Since they are on our board and Danone had been using the brand elsewhere, definitely there is a conflict of interest," she said. Asked when Danone would exit from the company, she said the issue had to be settled between Group Danone and Wadia.Bali said Britannia had also applied for registration of the Tiger brand in 14 countries. The company is using the Danone brand Little Hearts in India and was duly authorised, Bali said.
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About other plans, Bali said that Britannia was looking at various food products which would be launched in future.Britannia was also looking at acquisitions. The company was sitting on a cash reserve of Rs 400 crore and is debt-free. During the current year, the company's capital expenditure plan is Rs 100 crore. Profitability in the current year would be better than the last year, Bali said.
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