Wadia Group companies form structure for common interests

August 6th, 2012 - 9:46 pm ICT by IANS  

Kolkata, Aug 6 (IANS) The Wadia Group has floated a formal structure under NowrosjeeWadia & Sons Ltd (NWS) to help group companies in sectors like food, airline, textile and chemical maximise efficiency, Chairman Nusli Wadia said Monday.

“With a view to maximise the efficiency and effectiveness of specialised resources, a formal structure was created under NWS to serve the common interests of all Wadia Group companies,” Wadia said during the annual general meeting of Britannia Industries here.

The group companies will pay up to 0.1 percent of their net sales to the NWS as royalty as it has formed a central pool of experts to advise them on issues ranging from legal and taxation to treasury.

While the group companies will continue to maintain the respective departments, the central pool of advisors with the NWS will advise the companies on various issues.

Britannia Industries managing director Vinita Bali said the group companies have the option of increasing the royalty amount up to 0.25 percent of the net sales, but the companies are not considering any increase at present.

“Britannia is a part of the Wadia Group. There is a certain reputation and equity that come as part of being with the Group,” she said. “The costs towards royalty payments will be lower than that of availing such services.”

The royalty paying system exists in the Tata and AV Birla groups.

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