Marico , Nissin alliance over

Marico Ltd has informed that the Company and Indo Nissin Foods Ltd. have mutually decided to discontinue their distribution alliance with effect from April 01, 2008.

In this regard the Company has issued the following Press Release:

"Marico Ltd (Marico) has announced that the end of its distribution alliance with Indo Nissin Foods Ltd (INFL). Marico has been distributing the Top Ramen & Cup Noodles range of products for INFL, a subsidiary of Nissin Foods of Japan, in India, since 1998.

Marico had entered into a Marketing-cum-Distribution alliance with INFL, with the objective of leveraging its extensive distribution network, which used to then service a turnover of only about Rs 500 crore. Since then, Marico's Indian Consumer Products Business has more than trebled. Said Saugata Gupta, CEO, Consumer Products Business, "Our size and portfolio of brands have grown smartly over the past few years. The imperative now is to channel our energies into brands from our own stable". INFL too has achieved a critical turnover mass at which it is keen to set up a distribution network in India to service its own products.

The Alliance between Marico and INFL would have anyway expired in March 2009. It had initially covered even Marketing by Marico. However, when the agreement was Last renewed in 2006, the alliance had been scaled down to cover only distribution by Marico. The increased scale of business has prompted the Companies to end the agreement, a year in advance - with effect from April 01, 2008."