The Copenhagen-based brewer has been in a business dispute with partner Nepal’s Khetan Group for years, and an internal investigation into the brewer’s local practices has sparked a boardroom battle and raised auditors’ concerns.
In a ruling issued on May 4, Carlsberg said the arbitration panel had refused to grant its partners the “relief sought based on various allegations related to governance and breaches of shareholder agreements”.
The arbitration order is not made public.
“Carlsberg believes that the liability ruling fully justifies its position and is very pleased with the outcome,” it said in its earnings statement on Wednesday.
A representative for CP Khetan, who manages the Carlsberg India JV partnership, said in a statement that the arbitration award was “partial” and that the arbitration was ongoing and that it would “respond in detail to Carlsberg’s allegations in due course”.
Carlsberg is one of the largest beer companies in India with a market share of about 17%.
Carlsberg had previously told Reuters in a statement in July that the arbitration award gave the company “new options to end disputes and partnerships and ensure the freedom to operate in the future of our business in India and Nepal”.
Since 2019, the two parties have been continuously involved in the issue of how Carlsberg India conducts an internal investigation into its business practices.
Garbo’s local auditors twice declined to comment on its financials in recent years, citing dissenting views of three Khetans representing board members who have repeatedly claimed regulatory lapses. Carlsberg denies any wrongdoing.
(This story has not been edited by NDTV staff and was automatically generated from the syndicated feed.)