The Danone and Wadia tussle took another twist when the French dairy major offered to pay the Wadia Group $1.34 million (euro 1 million) compensation to use the Tiger brand in international markets. Reports suggest that Danone has also asked for a five year exclusive licensing agreement in countries like Singapore, Malaysia and Indonesia.
The problem started when Wadia Group claimed that Danone had violate Press note 1 regulation, according to which it is mandatory for a foreign company to obtain a no-objection certificate from its Indian partner, if it wants do the same business independently. Danone had registered the Tiger brand in approximately 70 countries across the globe.
It is said that the Union commerce ministry has come to a conclusion that Danone had violated the Press Note 1 regulation, which many experts believe is a victory of sorts for Wadia Group.
