Ownership battle brews over Mansion House brandy between Herman Jansen & Tilaknagar Industries

By M Padmakshan

MUMBAI: A corporate battle is brewing over Mansion House brandy between Herman Jansen, the Dutch company that owns the brand, and Tilaknagar Industries, which is currently producing and distributing the product in India.

Herman Jansen and Kishore Chhabria’s Allied Blenders & Distillers have signed an agreement to relaunch the second largest selling brandy in the world in India. The Dutch company said its agreement with Amit Dahanukar-owned Tilaknagar ended in 2007. Both are fighting over ownership of the brand in the Bombay High Court.

Chhabria has been licensed to produce and market the brand in India, Herman Jensen director Leo de Jong said in Mumbai last week.


The development may dampen the enthusiasm of those looking to buy a stake in Tilaknagar, although Dahanukar said there has been no alteration in circumstances. “As far as we are concerned, there is no change in our position,” he told ET. “The Bombay High Court has upheld our right to produce and market the brand in India.”

With Rs600 crore of debt, Tilaknagar is not in a financially comfortable position, experts said. Besides that, Chhabria has a history of winning corporate and court battles in his 35-year, including his fight against brother Manu Chhabria’s family and liquor baron Vijay Mallya, from whom he wrested the undisputed ownership of Officer’s Choice whisky.

Some experts said the agreement between Herman Jansen and ABD may give Chhabria a backdooor entry into Maharashtra-based Tilaknagar, which has been looking to sell a minority stake in itself. They said those sizing up Tilaknagar for a possible stake purchase have been drawn to it by Mansion House, which accounts for about 50-60% of itsRs1,000 crore turnover.

“We have mandated Ambit for finding investors for us,” said Dahanukar. “It can be a strategic investor also. But it will be a minority stake sale.” Chhabria was not available for comment.

Dahanukar said he would seek to prevent anyone else producing the brandy in the country. “If Herman Jansen produces Mansion House in India, we will try to stop it legally,” he said.

Sandeep Patel, who represents the Dutch company in India, said, “I cannot comment on our strategy as the matter is pending before the court.” Investment bank Ambit has prepared an information memorandum that’s been distributed to interested parties including vodka maker Bacardi, French spirit maker Pernod Ricard and Indian entrepreneur Ramesh Vangal.

Dahanukar said, “We will be looking at an investment of $200-$300 million.” De Jong said the agreement with Tilaknagar was terminated as Herman Jansen didn’t find the Indian company’s performance up to the mark.

The Scotch Whisky Association lobby group had also complained about the inappropriate use of scotch symbols by Herman Jansen’s franchisees in India and Indonesia and the company had to pay a penalty as a result.