Groupe Danone may exit its venture with India's Wadia family that controls biscuit maker Britannia Industries, according to a report in the Economic Times. The paper quoted Danone’s Secretary General Philippe Loic Jacob as saying, "Our priority is to develop a fresh dairy and beverage business in India".

Danone, which is keen on independent Indian operations, was getting "impatient" and was willing to compensate the Wadias for termination of the joint venture. The value of Danone's holding is over US$245 million, but the company has not discussed the pricing so far.

Danone and the Wadias are equal partners in Associated Biscuits International Holding, which controls Britannia, India's largest biscuit maker. Relations between the two were hit last year when the Wadias took Danone to court over the French firm's strategic stake in biotech firm Avesthagen. The Wadias said the stake violated a non-compete clause in their joint venture agreement.

This comes on the heels of Danone's battle with its Chinese partner, Wahaha. Zong Qing Hou, the chairman of Wahaha’s beverage joint venture resigned, accusing the French group of damaging his reputation. Hou's resignation follows allegations by Danone that Wahaha violated a contract by using the Wahaha brand name on products sold outside the JV.

Danone, which owns 51% stakes in 39 joint ventures with Wahaha, accused the Chinese company of setting up 20 independent companies and selling products identical to those sold by the joint ventures. Danone is demanding a 51% stake in the non-joint venture companies, which Wahaha Group's chairman Zong Qinghou rejected.

In an open letter to Danone Chairman and CEO Franck Riboud, Zong listed a series of complaints, including his low salary and difficulties in cooperating with Danone directors in China. Danone had earlier said that Wahaha Joint Ventures Vice Chairman Emmanuel Faber, who also heads Danone's Asian operations, would temporarily replace Zong.