Date:25/01/2007 URL: http://www.thehindubusinessline.com/2007/01/25/stories/2007012503091300.htm

Back Steers clear of legal tiff

Our Bureau

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Bangalore Jan. 24 Avesthagen Gengraine has tried to steer clear of the legal battle being fought between its investor, Groupe Danone and the Wadia Group.

The Wadias have filed a case against Groupe Danone for investing in Avesthagen, which they claim breaches an agreement in Wadia-BSN venture. Groupe Danone was earlier known as BSN.

"As far as we are concerned, the matter is closed. There is also a Groupe Danone representative on the board of our company," the Avesthagen Vice-Chairperson and Managing Director, Dr Villoo Morawala Patell, told newspersons.

She said Mr Jochen Ebert, Groupe Danone India's Managing Director, has been inducted into the Avesthagen board. Groupe Danone has invested around 4.5 million to pick up around 4 per cent stake in Avesthagen.

A Wadia spokesperson declined to comment on the development.

Dr Patell said the investment from Groupe Danone for R&D and product development in bio-nutritionals was to tap the R&D expertise of Avesthagen. "Our role is more like `Intel inside'. What they are looking for from us is our R&D expertise for their nutritional products," she said.