The Munjal family is debating who will use the name ‘Hero’ for electric vehicle (EV) ventures.
An arbitration tribunal appointed by the Delhi High Court has allowed Pawan Munjal-led Hero MotoCorp to manufacture and sell electric vehicles under the trademark ‘Hero’.
As reported, people with knowledge of the issue claim that the tribunal, which was created to resolve the conflict between the two branches of the Munjal family, this week moved Hero Electric for an interim injunction against Hero MotoCorp. The request has been rejected. Hero’ for your EVs.
The panel, which was made up of former Chief Justice of India Dipak Misra, retired judges Indu Malhotra and Indermeet Kaur, noted that Hero MotoCorp has publicly refused to use the ‘Hero’ name for its business of selling EVs since 2012. and it was soon to launch its EV in the open market under the brand ‘VIDA – Powered by Hero’.
The tribunal rejected the claim made by Naveen Munjal-led Hero Electric, in addition to the investment made in Ather Energy, Hero MotoCorp invested around Rs 400 crore to reach the point of commercial launch.
Unlike the Naveen Munjal Group, which invested only Rs 65 crore in the promotion of ‘Hero Electric’, the company spent over Rs 7,000 crore in the last 10 years to promote the goodwill and image of the brand.
Vijay Munjal, who along with his son Naveen owns Hero Electric, has filed a complaint in the Delhi High Court to restrain his cousin Pawan Munjal, Hero MotoCorp’s promoter and chairman, from using the brand name for his planned Electric Two. registered. wheeled
It was previously reported that as per the 2010 family agreement, Pawan Munjal was not allowed to use the ‘Hero’ brand name for any electric two-, three- or four-wheeled vehicles produced by his company, and Vijay Munjal was given all over the world. Rights to Hero’s EV.
However, Naveen Munjal told the Times Of. told India in 2021 that any breach of the agreement will result in “legal action” and that only his family has the right to use the Hero brand for green vehicles.
He said: “We own the Hero brand name for electrics and no one can use it. There is no ambiguity here. We can use it for any type of ground vehicle- two wheeler , three wheeler, car or commercial vehicle. If our rights are violated, we will take legal recourse.”
As per the agreement between the family members, Brijmohan Lal Munjal, the founder of Hero Group and father of Pawan Munjal, gained control of the company’s flagship company Hero MotoCorp as well as Hero Corporate Services.
His brother, Om Prakash Munjal received the rights to Hero Cycles, Hero Motors and Munjal Sales Corporation. Om Prakash Munjal’s son Pankaj is the current chairman of Hero Cycles.
Dayanand Munjal—father of Vijay Munjal and brother of the founder of Hero Group—became the owner of Hero Exports, Hero Electric and Sunbeam Auto.
In the end, the family of Brijmohan Lal Munjal’s second brother Satyanand captured Munjal Showa, Munjal. auto and other associated firms.
However, as per last year’s TOI report, Naveen Munjal said that “We are open to partnerships within the family. We are no closer to the idea” and also noted that “we have cordial family relations, and there is no animosity. It’s just that we have to protect our business interests.”
Hence, Vijay Munjal moved the court as Hero MotoCorp prepares to launch a line of electric vehicles, along with a new sub-brand called VIDA.
But on June 30, the arbitration panel allowed the Pawan Munjal-led two-wheeler major to use the trademark ‘Hero’.
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