Munjals move court to claim Hero brand for electric vehicle business

The legal battle comes at a time when Hero MotoCorp is gearing up to enter the EV business by March this year.

Two scions of the Munjal family are entangled in a legal battle for the right to use the Hero brand for their electric vehicle (EV) businesses.

Vijay Munjal, who, along with his son Naveen Munjal, owns Hero Electric, the largest electric two-wheeler company, has moved the Delhi High Court against his cousin Pawan Munjal, promoter and chairman of Hero MotoCorp, seeking an injunction on Hero MotoCorp using the brand name for its upcoming electric two-wheeler products.

The Munjals have hired more than six prominent lawyers each. While Vijay Munjal has engaged law firm Khaitan & Co and hired a team of lawyers including former solicitor general Gopal Subramanium and former additional solicitor general A S Chandiok, Pawan Munjal is being represented by law firm Agarwal Law Associates and the likes of Abhishek Manu Singhvi and Rajiv Nayar.

The case will be heard on January 5.

The legal battle comes at a time when Hero MotoCorp, the largest seller of two-wheelers in the country, is gearing up to enter the EV business by March this year. Its first product, a scooter, will compete directly against that of Hero Electric.

The spokespersons for Hero Electric and Hero MotoCorp didn’t respond to queries on the matter.

A person aware of the development said the Vijay Munjal group had sought an arbitration to settle the dispute over ownership of the brand and has moved the Delhi High Court, seeking an injunction on Hero MotoCorp using the “Hero” brand till arbitration was over.

“The arbitration notice was given some time back but since there has been no response from Hero MotoCorp’s side, the Vijay Munjal group has moved the Delhi High Court,” the person said.

According to the family settlement agreement, signed in 2010, the four patriarchs of the Munjal family agreed to settle through mediation all issues and disputes among two or more family groups arising in connection with the agreement. If that fails, the matter goes to an arbitration tribunal.

The extended Munjal family, which owns the combined business of around 20 companies, has a record of discord-free operations even as the reins passed on to the third generation of the family.

In 2010, the Munjal family disentangled their cross-holdings in more than 20 group companies in a manner that each faction of the family received ownership of the businesses they managed. The businesses were divided among the family of the late Brij Mohan Lal Munjal (father of Pawan Munjal) and his three brothers — O P Munjal, Satyanand Munjal, and the late Dayanand Munjal (father of Vijay Munjal).

According to this, while Brij Mohan Lal Munjal’s four sons -- Pawan Kant, Sunil Kant, Suman Kant, and the late Raman Kant -- got control of Hero Honda (later Hero MotoCorp), the Vijay Munjal group was vested with the rights to use the Hero brand for selling EVs in India and global markets.

Naveen Munjal, managing director of Hero Electric, had earlier told Business Standard he would not shy away from a legal battle to protect his family’s rights to the brand.

Industry sources said Hero MotoCorp might use a different brand name for its EV products if the court did not uphold its claim.

But that will entail significant cost to build the brand including setting up separate dealerships which don't carry the Hero brand.

 In August last year, Pawan Munjal showcased the first marque of its upcoming electric scooter. It didn’t carry any branding.

“All Hero MotoCorp products such as the Splendor and Passion have a different brand name, and the company’s EV will also have a distinct name and identity,” a person said.

The company has filed a patent for several names like the Vida, Vida MotoCorp, Vida EV, Vida Electric, Vida Scooters and even Vida Motorcycles for its EV endeavour. However, the person refused to confirm if a final decision had been reached on the use of the name.