Hindustan Unilever (HUL) has received an approval for a proposal to enter into a new agreement with Unilever Plc (and entities of the Unilever Group) for the provision of technology, trademark licenses and other services to HUL. The board at its meeting held on January 22, 2013 has approved for the same.
In recent years, Unilever has been increasingly globalizing their resources to provide greater expertise, superior innovations and scale advantage for all Unilever entities, with an increased emphasis on Developing and Emerging Markets, including India. The pace of innovations and the scope of services have expanded over the years, and as a consequence, HUL is enjoying the benefits of an increasing stream of new products and innovations, backed by technology and knowhow from Unilever. HUL is also receiving support and guidance to drive functional excellence e.g. in marketing, supply management, media buying etc. This is helping HUL to remain competitive and further step-up its overall business performance.
HUL currently has a Technical Collaboration Agreement (TCA) and a Trade Mark License Agreement (TMLA) with Unilever. The TCA provides for payment of 1% royalty on net sales of specific products manufactured with technical inputs developed by Unilever. The TMLA provides for the payment of trademark royalty at the rate of 1% of net sales on specific brands, where Unilever owns the trade mark and HUL is the licensed user. The total impact of both these agreements is a royalty cost of c. 1.4% of turnover.
| Company Name | CMP |
|---|---|
| Hindustan Unilever | 2287.90 |
| Godrej Consumer Prod | 1042.50 |
| Dabur India | 487.60 |
| Colgate Palmol. (I) | 2196.75 |
| P&G Hygiene | 9930.50 |
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