Danone and Wadia Conclude Their Joint Venture Relationships

For the Wadia Group, the agreement constitutes a significant strengthening of its position within Britannia, a company that is a model of profitable growth. Both groups intend to take this opportunity strongly to develop its presence in the strategic Indian market.

15/04/09 Danone and Wadia Group agreed to end their existing joint venture relationships in India. This will enable Danone to pursue its business interests in India independently. As part of this agreement, Danone has sold its 50% interest in ABI Holdings Limited (held through Britannia Brands Limited) to Wadia Group. ABI Holdings Limited holds an effective 50.96% interest in Britannia Industries Limited, a leading bakery company in India. This agreement also sees an end to the intellectual property dispute over the Tiger brand between Danone and Britannia. By concluding this agreement, Groupe Danone is pursuing its strategy of divesting its biscuit activities and concentrating on its four strategic business lines.

For the Wadia Group, the agreement constitutes a significant strengthening of its position within Britannia, a company that is a model of profitable growth. Both groups intend to take this opportunity strongly to develop its presence in the strategic Indian market.

Commenting on the transaction, Franck Riboud, Chief Executive Officer of Groupe Danone stated: “13 years of collaboration between the Wadia Group and Groupe Danone in Britannia helped to build a strong and respected leader in the Indian biscuits industry. We are fully confident that Britannia will continue to be highly successful under the Wadia Group’s guidance in the future. Danone is more keen than ever to contribute to the development of the healthy food market by implementing Danone brands in India in the coming years.”

Mr. Nusli N Wadia, Chairman of Britannia Industries said: “Wadia Group is pleased with this acquisition. Over the last 9 decades, Britannia has created a rich heritage of brands and a strong corporate reputation which has seen several ownership changes. In the last few years, the trajectory of investment and growth has accelerated, making Britannia one of the fastest growing companies in India. The Company is led and managed by a competent team of professionals, who will constantly explore profitable growth opportunities in food - both in India and overseas.”