INDIA: Red Bull "pleased" with court ruling over former distribution partner

Red Bull has said it is satisfied with an Indian court's decision to stop it using three distribution partners of Narang Danone Access (NDA), a former partner in the country.

The settlement last week, which also blocked Red Bull's attempt to move the matter to an arbitration court in Switzerland, follows the breakup of the companies' distribution partnership earlier this year. NDA told the Mumbai court that Red Bull had breached their agreement and moved in on its network, according to local reports.

However, Red Bull said the decision still allows it to build presence in India's growing energy drinks sector.

"Red Bull India is pleased with the ruling of the Bombay City Civil Court that has rejected claims of NDA,” the company said. “This has confirmed Red Bull’s right to continue doing business throughout India with the nearly 300 sub-distributors listed in the plaintiff's suit, with the exception of only three for as long as those sub-distributors have a subsisting distribution contract with NDA.” 

Narang Group founder & chairman Rahul Narang, whose company is a partner in NDA, agreed to reply to emailed questions from just-drinks but has yet to respond.

The Indian energy drinks market is estimated to be worth INR5bn (US$91.8m) and growing. In August, The Coca-Cola Co received government permission to launch its energy drinks brand, Burn, on the Indian market.