Post

McCormick in Dispute with Joint-Venture Rice Partner

McCormick in Dispute with Joint-Venture Rice Partner

Two large food companies are locked in an international dispute.

In 2011, U.S. spice giant  McCormick & Co., and Kohinoor Foods Limited, India entered into a JV – Kohinoor Specialty Foods India Ltd – with an agreement of rice supply for 7 years and a lock-in period of 5 years.  In 2015: The Indian partner  has accused McCormick of procuring supplies from elsewhere. McCormick denies it has broken the venture agreement but has confirmed that it has sought to end the joint venture. “We have not violated any contractual or any statutory obligations with Kohinoor Foods Ltd,” the venture told just-food in a statement. “We have served a notice to terminate our agreement to Kohinoor Foods Ltd. In view of the provisions of the said contracts relating to confidentiality and restrictions on public announcements, which bind both parties, we are unable to make any further specific comments.”

In their reply Kohinoor Foods Limited said that they had established that the agreement had been breached “by the Kohinoor Specialty Food [the joint venture] by sourcing supplies from an alternate supplier, during the lock-in period. We have also stated that since Kohinoor Specialty Food [the joint venture] has violated the RSA without cause and without giving due notice as provided in RSA, Kohinoor Foods Limited may also be treated free from the provisions of various agreements. In this regard we are taking all necessary steps to protect the interest of the company,” Kohinoor Foods Limited told the Bombay Stock Exchange.

Share

About Amritt

Who We Are

Small or big, your business will love our financial help and business consultations! We are happy when our clients are too… Actually, this is quite simple to achieve – because each time we help them in sorting out different accounting intricacies or save the day before filing the taxes, they are happy indeed! And so are we.   

We have over Twenty years of experience helping our clients succeed in India

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Blog
Page
Dictionary
Comparisons
Capabilities
India Business Guide
Services
Private
Speaking
Insights
White Papers
News
Newsletters
Clients
Case Studies
Companies In India
Webinars
Presentations
Industries