Havells India Pays Rs 129.60 Crore In Settlement To Resolve Trademark Dispute With HPL Group
As part of the settlement, the HPL Group will formally acknowledge Havells India Ltd's "absolute rights" to the HAVELLS trademark, thereby ending all ambiguity surrounding the trademark's ownership.
Havells India Ltd.'s long-standing dispute with HPL Group has finally come to an end, with the two parties reaching a settlement over the "HAVELLS" brand name, the company confirmed in an exchange filing.
The settlement puts an end to years of dispute between the two entities and will see Havells India pay Rs 129.6 crores to HPL Group.
The agreement resolves all pending disputes and litigations that had been ongoing in multiple courts, including the Delhi High Court and the Supreme Court of India. The resolution was achieved through a mediation process referred by the Delhi High Court.
As part of the settlement, the HPL Group will formally acknowledge Havells India Ltd's "absolute rights" to the HAVELLS trademark, thereby ending all ambiguity surrounding the trademark's ownership.
In addition, the HPL Group has waived all past and future claims to the 'HAVELLS' trademark while committing to changing the corporate names of its key entities, including Havells Private Limited and Havells Electronics Private Limited, to names that no longer contain the disputed mark.
The Rs. 129.60 crore payment, to that end, is designated as a one-time, full and final settlement of all financial aspects of the dispute.
The settlement should provide some crucial clarity for Havells India's brand identity and is likely to be received positively in the market.
Havells India's settlement with HPL Group comes in the wake of the company's September quarter earnings, where revenue grew only 5% on a year-on-year basis.
In its latest note, Yes Securities has maintained an 'add' rating on the counter, with a target price of Rs 1,698. The brokerage firm expects normalcy to return in Q4 after a period of slowdown.
