Thursday, 30. October 2014
05. 11. 12. - 13:00
Austrian energy drinks maker Red Bull and its erstwhile Indian partner Rahul Narang Group are headed for a long and bitter courtroom battle over territorial rights.
Red Bull, which recently severed its ties with the Indian partner, was stopped last week by a Mumbai court from poaching distributors of the Rahul Narang Group to sell their energy drink.
The Mumbai-based Rahul Narang Group had applied to a local court charging the Austrian multinational of poaching its proprietary distribution network, weeks after ending one of the oldest alliances in the country's beverage market.
Red Bull is growing at 30 percent annually. It is estimated to be a Rs 190 crore brand in India and controls close to 80 percent of the Rs 250-crore energy drinks market. Its rivals include Coca Cola's Burn, Zinga, local brands like Cloud 9 and a clutch of regional brands.
The Bombay City Civil Court agreed and restrained Red Bull from approaching three of RNG's sub-distributors in Pune, Bangalore and Gurgaon, and rejected the Euro 4.2-billion firm's plea seeking permission to move the matter to an arbitration court in Geneva.
But the court asked Red Bull not to approach those three specific sub-distributors and said the Austrian giant was free to negotiate with the remaining 300 distributors and sub-distributors.
"Red Bull is free to go on its own but let them build the operations on their own," Rahul Narang, founder & chairman of RNG, said in an interview.
Rohan Vyavahara, a spokesperson for Red Bull, confirmed that the company has been stepping up efforts to build its own India network.
"The court's outcome has confirmed our legitimate right to continue doing business with partners of our choice throughout India," Vyavehara said in a telephonic interview.
The Rahul Narang Group, meanwhile, is negotiating with Monster, a global energy brands from the United States, to market in India.
Ever since Red Bull set up its base with wholly owned subsidiary Red Bull India Private Limited in 2008, it became clear that the autonomy of the Indian partner would be curbed. Prior to 2008, RNG was importing and selling Red Bull on its own.
Over time, Red Bull put in place its own leadership team to oversee key accounts, ground sales and distribution operations of the Rahul Narang Group. Though logistics and warehousing were partially split, finance and marketing functions came under the direct supervision of the global energy drinks company.
According to The Economic Times, the split happened because RNG failed to meet mutually accepted targets. Two years back, both had agreed to scale up the venture's reach to 25,000 outlets from 15,000; but only 19,000 outlets were tapped. Currently Red Bull reaches to around 21,000 outlets and the company targets to triple that in the next 15 months.
Rahul Narang Group markets and distributes a clutch of international food and beverage brands including Perrier, Evian, Illy Coffee and Lindt Chocolates through its distribution network of over 150,000 points of sale nationwide.
Halloween At The Zoo
Pumpkin pie might be the order of the day for people this Halloween but now zoo animals are also getting in on the act.
Baby Naked Mole Rats Born In Vienna
With their pink hairless bodies and fangs for front teeth, these baby naked mole rats were never going to win any cuteness contests at Schonbrunn Zoo in the Austrian capital Vienna.
Jihad Girls Gunpoint Retraction Of Desire To Go Home
Austrian anti-terrorism police believe that an interview given to a French magazine allegedly with one of the two teenage girls who fled to Syria to join in the jihad was probably carried out at gunpoint.
Get Shorty As Confused Bald Ibis Gets Lost Again
A rare bald Ibis that seems to have a different sense of direction to her fellow birds has once again had to be rescued after getting stuck trying to find a different route to the southern Italian feeding ground.
Alpine Trains Venture Into Space As The Final Frontier
Austria’s national railway line the OeBB has raised eyebrows after offering themed toilets including one that is supposed to "look and smell like outer space".
MEP caught In Brit papers Fraud Probe Jailed
A corrupt MEP caught by a British newspaper offering to propose amendments to EU laws in exchange for 100,000 euros a year has been given a three-year-jail term.
Vienna Jihad Girls Want To Come Home
The two Austrian teenage girls who became ‘poster girls’ for the jihad in Syria are now desperate to come home after getting completely disillusioned with their new lifestyles.
There was a festival atmosphere as Bundespresident Heinz Fischer opened Vienna's new Hauptbahnhof Friday morning.
Apple Truck Causes Traffic Jam
When 24 tonnes of apples are catapulted across a road it can only mean a jam.
Farmer Cleared Over Wolf Shooting
Furious animal rights campaigners have accused an Austrian farmer of lying after he shot dead a wolf that he claimed he thought was a fox.
The most popular stories –
last 7 days
|Jihad Girls Gunpoint Retraction Of Desire To Go Home|
|Alpine Trains Venture Into Space As The Final Frontier|
|4.3 Million GBP For Sterilised Roma Women|
|Man Severed Penis That Failed To Impress Girls|
|Get Shorty As Confused Bald Ibis Gets Lost Again|
Why suffer in silence. Let off steam by letting our readers share your troubles. File your complaints about anything and everything here.
Our ombudsman David Rogers will try and help solve some of the problems from lazy civil servants through to incompetent companies – and at the very least the worst transgressors will end up in our weekly special report.