The Walt Disney Company and Modi Enterprises Ltd have announced the dissolution of their joint venture, Walt Disney India Pvt Ltd, with effect from Friday.

The dissolution follows the recent expiry of the 10-year licence agreement between the two companies. "The partnership we enjoyed with Disney for a decade was immensely rewarding and fruitful," Lalit Modi, chairman, Modi Enterprises Ltd, said in a statement.

Doug Miller, senior vice-president and managing director, Walt Disney Television International (Asia Pacific), said: "India continues to be a major priority for Disney and we remain fully committed to our customers and clients here. We have had a productive business partnership with Modi Enterprises in India, and we would like to thank them for their support and assistance."

Under the joint venture agreement, signed in 1993, Modi Entertainment Network had the rights for marketing Disney programmes in India.

However, the relationship soured in October 2001 when Disney sought the government's permission to set up a wholly owned subsidiary for the launch of the Disney Channel in India.

However, the Modis said the clearance for the proposal was subject to Modi Enterprises giving a no-objection certificate.

Modi Enterprises opposed Disney's proposal on the ground that the businesses of the existing joint venture company and the proposed wholly owned subsidiary were similar.

Modi Enterprises' refusal to give a no-objection certificate forced Disney to put on hold its plans for launching the channel.

End of a partnership

• Dissolution of JV follows recent expiry of 10-year licence agreement
• Modi Entertainment Network had the rights for marketing Disney programmes in India
• The relationship soured in October 2001, when Disney sought permission to set up a wholly owned arm for the launch of Disney Channel in India