Jyothy Labs Decides to Pursue Legal Remedies Regarding Brand License Agreements with Henkel
Jyothy Labs Limited has announced that it will pursue legal remedies to assert its contractual rights related to the exit and transition mechanism under various agreements with Henkel AG & Co. KGaA. This decision follows internal evaluations after discussions were held concerning the licensing of Pril and Fa brands.The company confirmed this strategic shift following a meeting of its Board of Directors, noting that the move comes subsequent to previous communications regarding the non-renewal of these brands by Henkel AG & Co. KGaA.
Jyothy Labs stated that it conducted an evaluation of all available options upon receiving communication from Henkel and concluded that legal action is necessary to protect its rights under the License Agreements and Technology License Agreements. The company plans to keep stakeholders informed regarding any subsequent material developments in this matter.
Details of Brand Agreement
The foundational agreement pertains to manufacturing, distribution, marketing, and sale under the Pril and Fa brands. The contractual details involving the parties are summarized below:| Particulars | Details |
|---|---|
| Name of Parties | Erstwhile Henkel India Limited (since amalgamated with Jyothy Labs Limited) and Henkel AG & Co. KGaA |
| Nature of Agreement | License Agreements and Technology License Agreements for manufacturing, distribution, marketing and sale under Pril and Fa brands. |
| Date of Execution | May 31, 2011 |
| Impact/Reason for Action | Following discussions with Henkel, the Company evaluated all available options and concluded to pursue appropriate legal remedies. |
JYOTHYLAB Stock Price Movement
On Monday, Jyothy Labs Limited shares climbed as they closed at ₹205.48, rising 2.51% from the previous close. The stock traded 1.59 million shares, staying within a tight range between an intraday low of ₹204.00 and a high of ₹210.30.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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