McDonald’s ends food fight in India
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International fast food chain McDonald’s has bought out its former partner Vikram Bakshi’s 50 percent stake in its Indian operations, ending a six-year dispute.
The disagreement arose when McDonald’s India attempted to oust Bakshi as MD of local operator CPRL in 2013, a decision that was overturned after local arbitration hearings ruled in favor of his reinstatement.
“With the transfer of ownership and management today, Mr. and Mrs. Bakshi end their association with CPRL and McDonald’s,” the company said in a statement. “McDonald’s acknowledges the significant work and contribution of Mr. Bakshi in establishing McDonald’s restaurants in North and East India.”
Bakshi was responsible for opening the first McDonald’s in the territory in the mid-90s, growing the franchise to more than 160 outlets in northern and eastern India.
McDonald’s now wholly owns CPRL, which will be headed by Robert Hunghanfoo going forward. The financial details of the transaction were not disclosed.
The firm is now seeking a new development licensee for the region.
Questions & Answers
Q.What led to the disagreement between McDonald's and Vikram Bakshi?
What led to the disagreement between McDonald's and Vikram Bakshi?
The dispute began when McDonald’s India tried to remove Bakshi as Managing Director of local operator CPRL in 2013. Local arbitration hearings later overturned this decision, ruling in favour of his reinstatement.
Q.What role did Vikram Bakshi play in McDonald's operations in India?
What role did Vikram Bakshi play in McDonald's operations in India?
Mr. Bakshi was responsible for opening the first McDonald's restaurant in India in the mid-90s. He grew the franchise to over 160 outlets across the northern and eastern regions of the country.
Q.Who will now lead CPRL after the change in ownership?
Who will now lead CPRL after the change in ownership?
Following the transfer of ownership, Robert Hunghanfoo will now head CPRL. McDonald's wholly owns the company after purchasing Vikram Bakshi's 50 percent stake in their Indian operations.
Q.What is McDonald's next step for its operations in the region?
What is McDonald's next step for its operations in the region?
McDonald's is currently looking for a new development licensee for the region, following the conclusion of its six-year dispute with former partner Vikram Bakshi. The financial details of the recent transaction were not made public.