Biscuits major Britannia Industries plans to focus on strengthening its international business and expand its brand presence in the aftermath of its settlement with Danone on the intellectual property rights (IPR) issue over the ‘Tiger’ brand. The company also expects its dairy business to drive growth for the company.
At its 90th annual general meeting in Kolkata today, Britannia Industries Chairman Nusli Wadia said: “The year ahead is likely to be a challenge for the industry due to the slowdown in GDP growth and discretionary consumers’ spending, runaway commodity inflation, exacerbated by failed monsoons in several areas and food shortages.”
Wadia pointed out that Britannia and Danone signed a settlement agreement over the ‘Tiger’ litigation pending in the High Courts of Singapore and Kuala Lumpur.
“Also, all IPR issues with Kraft on Tiger have been resolved, with Britannia securing its legitimate right to its Tiger logo around the world,” he added. Britannia got Rs 22 crore from Danone for the IPR infringement.
Leila Lands, Mauritius, a subsidiary of the Bombay Burman Trading Corporation, acquired 100 per cent of Britannia Brands, UK, from Danone Asia Pte, Singapore, resulting in its indirect shareholding in Britannia Industries increasing to 50.96 per cent. Consequently, Britannia has now become a subsidiary of Bombay Burman Trading Corporation. “Kraft will use another ‘Tiger’ — not the one we are using in the country — where it is operating and where it wishes to operate. That completes the settlement. Ultimately, ‘Tiger’ is a generic term and Kraft is free to develop its own ‘Tiger’ brand,” Wadia said.
Britannia, meanwhile, is planning to import sugar, both raw and refined, due to scarcity in the domestic market. “This is the first time we will import sugar,” Wadia said.
The company has also increased the prices of its products by 5-12 per cent to pass on the commodity price inflation to consumers.
