The shares of Tilaknagar Industries plunged 20 percent to get locked in the lower circuit at Rs 293.40 apiece on February 10. This comes after the Bombay High Court on February 7 dismissed the company's plea against other firms using its trademark brand names 'Mansion House' and 'Savoy Club' on their products.
Tilaknagar Industries had filed the petition, alleging that Herman Jansen Beverages Nederland B.V. and others used its trademarked names on its alcoholic products to "pass off their business and goods as and for those of Tilak Industries". The Bombay High Court has dismissed its petition on the same.
The Bombay High Court has also allowed Allied Blenders & Distillers to introduce products bearing the name 'Mansion House' in West Bengal. However, it has put a stay on the order for four weeks, allowing time for Tilaknagar Industries to file an appeal against the same.
"The status quo as of this date remains with Tilaknagar Industries continuing its uninterrupted use and sale of the brand MANSION HOUSE whilst preparing for filing an appeal against the concerned order before the Division Bench of Bombay High Court. As per its internal assessment, the Company does not expect any financial impact on its business and is taking requisite steps to safeguard its interests," Tilaknagar Industries said in an exchange filing.
Tilaknagar Industries has been manufacturing, marketing and selling whiskey, gin and brandy under the 'Mansion House' and 'Savoy Club' trademarks in India since 1983. While announcing its Q3 results, the company had announced that 'Mansion House' brandy is India’s largest selling brandy and second largest selling brandy globally.
The court order said that the judge found no apparent similarity between Allied Blenders and Tilaknagar Industries' label of 'Mansion House', dismissing the latter's allegation that ABD's products may be passed off as theirs.
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Tilaknagar Industries shares are currently trading 36 percent lower than the 52-week-high record of Rs 457 apiece. The stock is still nearly 61 percent higher that its 52-week-low record of Rs 182.
The market capitalisation of the stock is Rs 5,670 crore.
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