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Investment in Avesthagen seen as breach of regulations

Mr Ajay Dua, Secretary, Department of Industrial Policy and Promotion (right), with Mr Anil K. Agarwal, Past- President, Assocham, at a retail summit in the Capital on Friday. — Ramesh Sharma

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New Delhi Feb.2 Mr Ajay Dua, Secretary, Department of Industrial Policy and Promotion, on Friday said the Government had received the letter written by the Wadias against Danone, the French food company, alleging breach of regulations.

"The letter has been received. It is being examined to take any action," said Mr Dua, on the sidelines of the Retail Summit organised by Assocham.

In their letter to the Government, the Wadias said Danone's investment in Bangalore-based bio-actives company Avesthagen jeopardises the joint venture it has with the French company. Government regulations make it mandatory for a foreign partner in a joint venture to seek approval of its Indian partner if it wants to start any venture that might compete with the existing one.

Meanwhile, on the French retail giant Carrefour's entry into India, Mr Dua said, "The information we have got is that they are talking to various companies to look for a partner but they are yet to finalise its name." He added, "We have also asked Starbucks about the arrangement it will have with its Indian partners." Starbucks Corp, the world's biggest coffee-shop chain, has yet to give its reply to questions the Indian Government wants answered for the company's proposed venture in the country.

Mr Dua further said that in the last few years not much investment happened in the back-end of retail operations but this was expected to change.

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Govt studying Wadias' letter against Danone: Ajay Dua

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