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New Delhi, March 22 (IANS) Nestle India Friday said it has reviewed its general licence agreement under which royalty rate will be increased at 0.20 percent per annum over the next five years effective Jan 1, 2014.
The company's board of directors, with only independent directors voting and executive directors recusing, approved the change at a meeting here.
The company has a general license agreement (GLA) that allows it access to Nestle Group's intellectual property rights including global portfolio of brands, proprietary science and technology including over 1,300 patents, extensive research and development capabilities and expertise on best practices.
The GLA includes access to over 6,000 brands such as Nestle, Maggi and Nescafe and technologies developed by the global network of 32 research and development centres, including the one recently inaugurated in Manesar in Haryana which will further assist in localisation of global concepts, Nestle India said in a statement.
"This will ensure ongoing access to the entire capabilities of Nestle, the world's leading nutrition, health and wellness company having the largest food and nutrition research and director network globally and will enable Nestle India to continue to deliver long term sustainable profitable growth and create shared value for society and its shareholders," Chairman and Managing Director of Nestle India A. Helio Waszyk said while commenting on the board's decision.
Nestle India's recent capacity investments of around Rs.3,000 crore have benefited from this.