Danone says talks with Wadias still on

French food products major Danone, whose relations with the Wadia Group had gone sour, today said it remained committed to the market here and is still in talks with the Indian partner to resolve differences.

"Discussions with the Wadia Group are still ongoing, and we are working diligently to find a favourable solution for both partners," a Danone spokesperson told PTI.

There have been reports that Danone and Wadia were close to parting ways and the French firm was contemplating a solo entry in the Indian market.

A Wadia Group spokesperson in Mumbai confirmed that talks were continuing between the two parties. While declining to comment on solo-entry reports, the Danone spokesperson said: "Danone wishes to ratify its interest in the Indian market, where we have been present for more than ten years."

The Wadia-promoted Britannia Industries' share price today rose 1.72% or Rs 25.05 to close at Rs 1,485.15 at the BSE. The stock had hit a life-time high of Rs 1,645 on May 15.

Danone and the Wadias are fighting a legal battle following the Paris-based company's subsidiary, Danivest.Com, buying 5% stake in India's Avasthegen. The Wadias had accused the French firm of breaching a non-compete clause. Differences between the two partners had hit headlines after Danone's financial figures for the third quarter ended September 2006 did not include Britannia's performance.

According to various media reports, Danone had cited corporate governance issues for not sharing its figures with Britannia.

This was the first time in the joint venture history that Danone's quarterly figures did not include the Indian unit's results.

Danone owns about 25% in Britannia through Associated Biscuits International Holdings, which is jointly owned by Danone and the Wadias.

Danone had said in its third quarter results announcement last year: "Groupe Danone has been fully consolidating Britannia Industries since 1994. On August 2006, Britannia's board decided to limit the release of price-sensitive financial information to comply strictly with stock exchange regulations in India. "The availability of financial information needed by Groupe Danone for consolidation purposes has been impacted by this decision."