McDonald lookouts for new partners as Vikram Bakshi exits
The US fast-food chain McDonald’s is in serious talks with two potential partners to operate in north and east India as its partner Vikram Bakshi is on his way out. The duo has decided to go for an out-of-court settlement for their six-year-old dispute. The two parties have informed the National Company Law Appellate Tribunal (NCLAT) on Monday. The tribunal has directed both the parties to submit terms of settlement and will consider their request on May 13.
The two potential partners who could take over Bakshi’s Connaught Plaza Restaurants (CPRL) are retail-to-power RP-Sanjiv Goenka group and Moon Beverages, which is Coca-Cola’s largest bottling partner.
The fast-food chain and Bakshi have been doing business together since 1995 with a 50:50 partnership. Bakshi was responsible for opening and managing outlets of McDonald’s in the northern and eastern India.
In 2013, Bakshi was overthrown from the post of CPRL managing director for four years and was restored to the position in July 2017. However, about 169 franchise deals managed by Bakshi were terminated in 2017 by McDonald’s India for non-payment of royalties. The suppliers, which included Vista Processed Foods, Schreiber Dynamix Dairies, Cremica Foods Industries and Amrit Foods, were instructed to stop dealings with CPRL, informs a report.