Marico ends distribution alliance with INFL wef Apr 1

New Delhi, Mar 23 (UNI) FMCG company Marico today said it would end its distribution alliance with Indo Nissin Foods (INFL), an Indian arm of Nissin Foods of Japan, with effect from April 1, 2008.

Marico has been distributing the Top Ramen and Cup Noodles range of products for INFL since 1998.

The company had entered into a marketing-cum-distribution alliance with INFL with the objective of leveraging its extensive distribution network, which used to then service a turnover of only about Rs 500 crore, it said in a statement.

Since then, Marico's Indian consumer products business has more than trebled.

The alliance between Marico and INFL would have anyway expired in March 2009.

The agreement, which had initially covered even marketing by Marico, was last renewed in 2006 and the alliance had been scaled down to cover only distribution by the company.

The increased scale of business has prompted the companies to end the agreement, a year in advance, it added.

UNI SG AK KN1830