Dcm, Benetton Bury Hatchet

Sources said Vivek Bharat Ram has made commitments which include more personal involvement and managerial support to the company from the DCM group. The pac t was thrashed out in a meeting held between top Benetton executives and Vivek Bharat Ram recently.

Confirming the patch-up, a Benetton representative in India told Business Standard, It is true we were quite unhappy with the situation some months back. However, the issues have been thrashed out

and Vivek Bharat Ram has promised sufficient involvement in the

company. As part of the understanding, a few top-level executives from the DCM group are expected to join key positions in DCM-Benetton

 

shortly.

Besides, Vivek Bharat Ram will also personally visit the company premises and meet the executives on a weekly basis. The two have also agreed on setting up six exclusive retail stores to step up production in the factory and go in for a major advertising blitz.

Both Benetton and DCM group have 50:50 equity stake in the joint venture company, each having invested Rs 4 crore in the Rs 13-crore capital base and the remaining being ICICI loan of Rs 5 crore.

The understanding comes in the wake of Benetton's complaints about the Indian partner's lack of commitment in the project. Insiders say that Benetton was scouting for a new joint venture partner since they were unhappy with the present arrangement.

UB group promoter Vijay Mallya had approached Benetton to work out a deal for apparel manufacture in India. The UB group is the sponsor of the annual Formula 1 car racing event organised by Benetton in Italy.