:. Food Industry News

Categories: Corporate Results

Britannia Gets 220 Mln Rupees from Danone to Settle Dispute

Source: Reuters
01/09/2009

Kolkata, 31 August - India's top biscuit-maker Britannia Industries Ltd has received 220 million rupees, from France's Danone to settle a dispute over the 'Tiger' brand, a top official said on Monday.

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"Danone has paid 220 million rupees as fee for using the Tiger brand. Also all the IPR issues on Tiger, were resolved with Kraft, with Britannia securing the legitimate right to its Tiger logo around the world," Managing Director Vinita Bali told reporters at a press conference.

In the event of the rising sugar prices, the consumer companies plans to import sugar to meet the raw material requirements.

"Domestic sugar is now trading at 32-33 rupees compared to 16-17 rupees a year ago. Government has allowed the import of sugar only in the last 3-4 weeks, so we are looking to import sugar to meet our raw material requirements," she added.

In a response to the question on the operating margins of the company in during FY10, she said that maintaining margins would be a 'challenge' as prices of food commodities move higher.



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