Carlsberg said on Wednesday it had won an arbitration case filed by its joint venture partner in India, following an argument over the Danish brewer’s business practices in the country.
The Copenhagen-based brewer has been embroiled in a commercial dispute for years with partner, Nepal-based Khetan Group, amid an internal investigation into the brewer’s local practices that sparked a board battle and auditor concerns.
Khetan Group, which owns 33.3% of the shares in the holding company of Carlsberg’s operations in India and Nepal, had referred disagreements over corporate governance standards to an arbitration tribunal in Singapore.
In a ruling issued on May 4, Carlsberg said an arbitration panel had refused to give his partner “the relief it had sought on the various allegations related to governance and violation of the shareholders’ agreement.”
The arbitration decision is not public.
“Carlsberg considers his position to be fully justified by the attribution of liability and is very pleased with this outcome,” it said in its profit statement on Wednesday.
A representative of CP Khetan, who manages the Carlsberg India JV partnership, said in a statement that the arbitration award was “partial” and that arbitration is underway, and that it will provide a “detailed response to the allegations in due course.” from Carlsberg”.
Carlsberg is one of India’s largest beer companies, with a market share of approximately 17%.
Carlsberg told Reuters in a statement earlier in July that the arbitration decision gave the company “new options to end the dispute and partnership and secure future operational freedom for our companies in India and Nepal.”
The two sides have been embroiled in a row since 2019 over how Carlsberg India has conducted internal investigations into its business practices.
Carlberg’s local accountant had twice declined to express an opinion on its financials in recent years, citing differing views of the three representatives of Khetan’s board of directors who repeatedly claimed the regulations were flawed. Carlsberg has denied all allegations.
(This story was not edited by DailyExpertNews staff and was generated automatically from a syndicated feed.)