Now Reading: Grasim, Hindalco, Novelis to pay brand royalty to Aditya Birla
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Grasim, Hindalco, Novelis to pay brand royalty to Aditya Birla
The Aditya Birla Group has introduced a brand royalty framework for its listed operating companies, effective June 1, 2026. Group firms will pay 0.25% of revenue as royalty for using the Aditya…
The Story in Brief
The Aditya Birla Group has introduced a brand royalty framework for its listed operating companies, effective June 1, 2026. Group firms will pay 0.25% of revenue as royalty for using the Aditya Birla name, subject to an annual cap of Rs 225 crore per entity.
Hindalco's India operations and its US subsidiary Novelis, along with textiles giant Grasim, will pay the royalty from FY27. Grasim's managing director said the outgo would be about Rs 125 crore on estimated revenue of Rs 50,000 crore. Hindalco's MD noted that the promoter had never charged royalty before, an exception among large Indian conglomerates.
The Indian Opinion
Brand royalty is standard practice among Indian business families, but Aditya Birla's sudden move after decades of free brand use raises eyebrows. Minority shareholders will watch if the Rs 225-crore cap per entity stays rigid or creeps up. The real test: whether this fee trims dividends or gets passed on to consumers. A question that remains unanswered: why now?
Source: timesnownews.com
This story was synthesised by AI from the source linked above.
