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Grey initiate legal proceedings against Domino’s

13-March-2002
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Grey initiate legal proceedings against Domino’s

Advertising agency Grey Worldwide (India) Pvt. Ltd. has initiated legal proceedings against Domino's Pizza India's for nonpayment of dues. According to the agency, Domino’s owe Rs 2.75 crore for the `Hungry Kya' campaign. The company has since terminated its relationship with Domino's.

According industry sources, both parties have now appointed arbitrators on their behalf and a `third umpire' is soon to be appointed to resolve the stalemate. The company expects hearings on the dispute to begin in Delhi in the first week of April.

Agency source maintains that the non-payment of dues arose after a new management team took over at the pizza company from the earlier management with which the Grey team had entered into a contract. Both the earlier Chief of Finance, Mr. Gautam Advani, and the Managing Director, Mr. Pawan Bhatia, have quit Dominos since then.

The Domino's account has, in the meanwhile, been given to Equus, another agency, and the company has now budgeted a whopping Rs 10 crore for a print campaign and below the line activities.

Domino's Pizza India is promoted by the Vam Organic group, which divested 26 per cent of its stake to an investment banking company, Chase Manhattan, a year ago. The company has recently moved out of some of its key markets and is now looking at growing in newer markets in the cities.

Source: Business Line

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