Bangalore: The board of directors of Britannia Industries terminated the employment of its managing director, Sunil K Alagh, with immediate effect.

Earlier, Alagh had informed the company''s board of his intention not to renew his contract, which expires in February 2004. The company is yet to announce Alagh''s successor.

Alagh''s decision to leave Britannia follows intense market talk on his possible departure from the company tracking certain differences with the Nusli Wadia family.

There was talk of a drifting relationship between Wadia and Alagh over the Kwality buyout. Britannia had acquired the trademark Kwality, Chef Device and several other trademarks owned by Kwality Biscuits of Bangalore for a consideration of Rs 30 crore.

It had also acquired 49-per cent equity in Kwality Biscuits. The company had agreed to acquire 49 per cent equity of Snacko Bisc (Pvt) Ltd along with the trademark Nutrine in respect of the bakery product and several other trademarks along with copyrights and designs.