On Tuesday, March 12, 2024, the leading Fast-Moving Electric Goods (FMEG) company, Bajaj Electricals, announced that it has entered into a license agreement with its arm, Bajel Projects. The company permitted Bajel Projects to use the ‘Bajaj’ trademark for a period of three years.
Bajel Projects, which is involved in the business of Engineering, Procurement and Construction (EPC), can now use the trademark of ‘Bajaj’. Bajaj Electricals will charge a 1% royalty from Bajel Projects on the revenue generated from using the trademark.
Both Bajaj Electricals and Bajel Projects are part of the same group of companies. However, neither company holds shares in the other.
Bajaj Electricals stated in a regulatory filing that “Pursuant to the relevant provisions of the Scheme of Arrangement between Bajaj Electricals Limited and Bajel Projects Limited, and their respective shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, which became effective from September 1, 2023 with the approval of the Hon’ble National Company Law Tribunal, Mumbai Bench, the companies have, considering the smooth transition of the Power Transmission and Power Distribution Business from the demerged company to the resulting company, entered into a license agreement dated March 12, 2024.”
Bajaj Electricals Ltd is a part of the Indian multinational conglomerate Bajaj Group. Bajaj Electricals is one of the prominent FMEG companies in India. The company is spread across various segments, such as consumer products like fans, appliances, lighting, and EPC – transmission towers, power distribution and illumination. On Wednesday, March 13, 2024, the share price of Bajaj Electricals Ltd opened at ₹958.30 on the NSE.
Bajel Projects Ltd (BPL) is a part of the Bajaj Group. Bajel Projects Ltd, which is engaged in the business of Engineering, Procurement and Construction, was previously a division of Bajaj Electricals Ltd. The company’s EPC segment comprises power transmission and distribution. Bajel Projects offers end-to-end solutions, which range from in-house design, procurement, testing, manufacturing, installation and commissioning of the projects. On Wednesday, March 13, 2024, the share price of Bajel Projects Ltd opened at ₹184.05 on the NSE.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Mar 13, 2024, 2:10 PM IST
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