What controversies have affected Britannia's management and reputation

Britannia Industries has faced several controversies over the years affecting its management and reputation:

1. Supply Contract Malpractices (2012): Britannia launched an internal investigation into suspected employee malpractices involving favoritism towards certain suppliers when granting supply contracts. Several senior executives, particularly in Delhi and Bangalore, were suspended as a result. The company admitted that some behaviors violated its code of business conduct and promised appropriate action following the inquiry.

2. Disputes and Legal Battles with Danone: During the 1990s and 2000s, Britannia was embroiled in a prolonged and bitter corporate and legal struggle involving the Wadia Group (which owns Britannia) and French multinational Danone, who were joint venture partners. Key points included:

   • Rajan Pillai, a businessman who controlled Britannia in the 1980s, was accused of defrauding the company and died in jail during this period.

   • The Wadia Group and Danone had conflicts over control, brand use (especially "Tiger" biscuits), and business activities. Danone was accused by Wadia of breaching non-compete agreements and improperly investing in related businesses.

   • Britannia took legal action over intellectual property disputes related to the Tiger brand, ultimately securing worldwide rights and compensation from Danone in 2009.

3. The Co-operative Bank Merger Issue (2009–2014): Although not directly Britannia Industries itself, the related merger between the Britannia Building Society and the Co-operative Bank in the UK led to major financial and governance problems for the bank. Reports criticized management failings and risky asset portfolios inherited from Britannia’s building society arm, which contributed to a near-collapse of the Co-op Bank. This episode highlighted related governance and strategic weaknesses tied to Britannia’s financial business arm, though distinct from its FMCG operations.

4. Trademark Disputes (2023): Britannia was involved in a trademark dispute with ITC over packaging and marketing of butter cookies, accusing ITC of selling similar products under the "Mom's Magic" trademark, as reported by the Supreme Court of India urging resolution of the matter.

These controversies have ranged from internal malpractices and executive misconduct to intense shareholder and legal battles impacting brand and business credibility, as well as external disputes with competition. Britannia's handling of these issues through investigations, legal action, and corporate restructuring has been crucial in maintaining its reputation despite such challenges.