The board of directors of Britannia Industries Ltd has passed a resolution to terminate the employment of Sunil K Alagh as managing director of the company with immediate effect.

The company said this in a statement to the Bombay Stock Exchange on Wednesday.

Alagh had earlier said that he would not seek extension of his tenure, which was to expire in February 2004.

The company's board, headed by Chairman Nusli Wadia, considered Alagh's communication about not seeking extension beyond the contract term at a meeting held in Mumbai late on Tuesday night and decided to terminate his employment from June 4.

The company has not yet said anything about who would be Alagh's successor.

Reports had earlier hinted that Bombay Dyeing Managing Director Ninu Khanna might take over from Alagh to head Britannia Industries. However, the Wadias -- who have a substantial stake in Britannia -- had said that this was mere 'mere speculation.'

Meanwhile, market sources also indicated that Jeh Wadia, younger son of Nusli Wadia, might take charge as vice-chairman of Britannia Industries soon.