Remy Cointreau and Highland Distillers have ceded control of their loss-making Indian operation DCM Remy to Indian company DCM Shirman Industries (DSIL), their partner in the Indian market.
DCM Remy is a 50:50 venture between DSIL and HRI Mauritius, a company floated jointly between Highland Distillers and Remy Cointreau.
According to Indian sources the move could be a precursor to the two overseas partners selling out altogether, although a decision has not been reached to this effect.
The change in control involves the resignation of the three Highland Distillers and Remy Cointreau nominees on the six-member DCM Remy board. Furthermore, Dinesh Jain, Remy's nomination to the board and the CEO of the company, has also resigned to be replaced by a DSIL nominee.
Indian press reports have stated that the new agreement drawn up between the partners will mean that DCM will only be able to sell one Highland brand - Black Bottle - for another three years.
The other two brands the foreign partners bought in, Passoa and Cointreau, have been discontinued.
According to the Indian source the move was the consequence of a joint agreement between Remy and Highland. They did not want to get into the Indian made foreign liquor segment, which was the area identified for growth by DCM in the future.
DCM Remy is a 50:50 venture between DSIL and HRI Mauritius, a company floated jointly between Highland Distillers and Remy Cointreau.
According to Indian sources the move could be a precursor to the two overseas partners selling out altogether, although a decision has not been reached to this effect.
The change in control involves the resignation of the three Highland Distillers and Remy Cointreau nominees on the six-member DCM Remy board. Furthermore, Dinesh Jain, Remy's nomination to the board and the CEO of the company, has also resigned to be replaced by a DSIL nominee.
Indian press reports have stated that the new agreement drawn up between the partners will mean that DCM will only be able to sell one Highland brand - Black Bottle - for another three years.
The other two brands the foreign partners bought in, Passoa and Cointreau, have been discontinued.
According to the Indian source the move was the consequence of a joint agreement between Remy and Highland. They did not want to get into the Indian made foreign liquor segment, which was the area identified for growth by DCM in the future.
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