Thursday, May 26, 2016

Birla Lifestyle pulls out of alliance with Eapro Global

Birlalifestyle, one of the leading household appliances, established in 1992 and part of the Rs. 3000 crore Indian conglomerates - The Yash Birla Group, announced that they discontinue its alliance partnership between Birla Lifestyle and Eapro Global Ltd. as per their alliance MOU.

On the occasion Mr. Manoj Singh, CEO, Birla Lifestyle Consumer Products Pvt Ltd., said, “Our decision was based on audit report findings mentioning breach of code of conduct and business practices by Eapro Global Limited. Birla lifestyle always believe to built-up long term business association with their potential business partners to set-up the wide range of platform jointly with their partners to streams line the consistent business opportunity. With significant acceleration expected in the innovative business over the next few years, but due to non responsive approach & attitude on business and code of conduct is having adverse effect on brand equity. Keeping this in view, we believe this discontinuation is right approach and to maintain our brand equity same is value addition for our group. An auditor report has also come as negative in alliance books of accounts and there were many ‘Breach of Contract’ as per Brand Alliance Agreements.”

“The management would like to inform to all the stakeholder, business associates, channel partners, dealer & distributors, employee, advisors and other vendors, including investors etc and other stakeholders for an interaction on the need and likely impact of this change in the system. Birla Lifestyle has no business association with Eapro Global Ltd, in any business line including their products. Birla lifestyle and Eapro Global limited are two independent entities and hereafter and there would be no corporate interference. Brand Alliance partnership is been diluted and going forward Eapro Global Limited is not entitled of using our legacy of Birla Group. In case any guilt is found Birla lifestyle can take severe action against as per company acts” he added.

As mentioned both companies are separate entity bridging with brand alliance strategy and board of directors and management of the company remains same in Birla Lifestyle in case any changes will be updated on the same. Eapro Global has an independent management and they follow their code of conduct as per company act.
The Yash Birla Group is a conglomerate of over 20 diversified companies which run the gamut from established sectors like Auto & Engineering, Textiles & Chemicals and Power & Electricals to emerging sectors of today like Wellness & Lifestyle products, Education & IT. Today, the Group has 8 listed entities in India. The Group has identified sunrise industries like Education, Healthcare and Renewable Energy as focus areas for the future.

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