Expect Danone to abide by JV pact: Wadias

Even as speculations are rife that Danone may sell its stake in Britannia to an outsider, Indian joint venture partner, the Wadias, today said they expected the French food major to "abide by" their JV agreement.

Responding to a query on reports that Danone was considering offloading its 25.5% stake to an outsider as the two partners were unable to reach a consensus, a spokesperson of the Wadias said: "We would expect Danone to abide by the joint venture agreement."

The spokesperson, however, declined to comment on the details of the agreement between the two parties as "it was confidential".

After being mired in controversy over the joint venture, Wadias and Danone have been trying to find an amicable solution to end the rift.

"There have been discussions with Danone, the last of which were held on May 4," the spokesperson said.

Asked to comment on Wadias' stand on the issue of Danone proposing to make an independent entry in India for dairy products and beverages, the spokesperson declined to comment.

"We are in discussions with Danone, and would not wish to comment," she added.

On its part, Danone said it is working for a solution to end its tussle with the Wadias. Groupe Danone Secretary General Philippe Loic Jacob said: "Discussions with the Wadias are still ongoing. Both companies are analysing together all alternatives to find a favourable solution."

Wadias and Danone together hold 51% stake in Britannia through a joint venture Associated Biscuits International Holdings, in which they are equal partners.