Godrej denies report of ending Hershey India venture
India's Godrej Consumer Products Ltd has not called off its joint venture with US based Hershey Co, an executive said on Wednesday, denying an earlier report in an Indian newspaper.
July 07, 2011 / 12:59 IST
India's Godrej Consumer Products Ltd has not called off its joint venture with US based Hershey Co, an executive said on Wednesday, denying an earlier report in an Indian newspaper.
The Economic Times reported that Godrej and Hershey agreed at a recent board meeting to call off their joint venture in India following management differences in running the entity. The report said Hershey would sell its 51% stake in the venture to Godrej for an undisclosed sum.Godrej shares closed up nearly 2% on the news.Godrej Consumers calls off JV with Hershey; stock reactsA. Mahendran, the company's managing director, denied the report."The JV is continuing. There is no doubt about that," Mahendran told Reuters.A Godrej-Hershey spokeswoman in India and a Hershey spokesman in the United States said they do not comment on market speculation.The joint venture dates back to 2007, when Hershey bought 51% in Godrej Beverages and Food, giving it a toehold in the fast-growing Indian market.Godrej shares closed up 1.9% at Rs 446.50 in Mumbai. Hershey shares were down 2 cents at USD 57.40 in late morning trade on the New York Stock Exchange.Godrej Properties sees strong growth, new projects in FY12 Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
