War Between McDonalds India And CPRL (Bakshi) Continues To Grow

December 10, 2013 Leave a comment

War Between McDonalds India And CPRL (Bakshi) Continues To Grow

SULABH PURI0DEC 6, 2013, 01.02 PM

It has been seen in the past that multi-national partnerships and joint ventures in India come to an abrupt end or a staggering slow after years of working together. This time the war is between McDonalds India and their joint venture partners Connaught Plaza Restaurants Ltd (CPRL). The two entered into a 50-50 partnership 18 years ago and now everything seems to be in a boil. In august this year, McDonalds had asked Vikram Bakshi, MD of the company to step down. Reports suggest that Bakshi had been sent a notice by McDonalds India and now as a counter he has written to his colleagues challenging the notice. CPRL has come back and said that the US based chains intentions are to end the JV between the two companies and is ill-intentioned. The feud between Bakshi and McDonalds started when two of the board members rejected the plea to re-nominated Bakshi as the MD in August 2013. On August 30, McDonalds removed Bakshi as the MD and said that the Indian leg will now be lead by the board instead. The battle seems to be growing as the days are passing and the future of the JV is in the pits. A quick solution is required for one of the biggest fast food chains in the country to perform well. Sources also tell that courts are being moved on the issue, but nothing official has come out of it yet.

Filed under Macro Trends

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