Herbalife Meets Its Swadeshi Counterpart

Imitation may not always be the best form of flattery. Especially for the $2 billion American major Herbalife. The company launched its products in India six months back only to discover a homegrown look alike, Herbalways, in the market. Based in Jallandhar, Herbalways, much like Herbalife, is a health and nutrition company with a similar range of products in similar packaging. Like Herbalife, Herbalways also uses the multilevel marketing plan to sell.

Predictably, the two are now engaged in a legal battle. Interestingly, last month the Jallandhar based Rs 3 crore Herbalways filed a case in the Jallandhar Sessions court against the American company.

The company's vice president Puneet Nanda, however, insists that the case is a minor one. "It is more like a preventive step to safeguard our company's interests. We filed the case because people warned us that we will have to shut shop," he says. Herbalways petition says that Herbalways is a registered company and that Herbalife should not have any objections to its name or its products.It also says that the multinational should not copy the Herbalways products.

What is even more interesting is that the Court has asked Herbalife to give it in writing that the multinational will not copy Herbalways products. The next hearing of the case on May 15. The US company's Bangalore -based officials refused to comment on the spat.

Meanwhile, Herbalways officials insist that the company introduced its range of products much before Herbalife came into India. For the last three years Herbalways products have been available in Punjab, though in a small way. It was only one year back that it became a private limited company and expanded its product range and market. Nanda says that it got the names of its products registered in July 1999.

Nanda also boasts of the fact that Herbalways has over 20 products including a weight management drink called Slimetics and special diets for diabetics, pregnant women etc. "We not only offer more products but are 40% cheaper. Heralife's weight management drink Formula 1 priced at Rs 1,000, while Slimetics is sold at Rs 650.

Herbalways is promoted by a Jallandhar based cardiologist J.S. Mann who as its own manufacturing units in Jallandhar. So was Mann ever a Herbalife distributor? The answer is not forthcoming. An official say that Mann must have seen Herbalife products as it is a 20 year old company. But isn't Herbalife taking on Herbalways for similar looking packaging?

"We re changing our packaging on our own. We do not want people to say that we are imitating them," says Nanda. "However, why should a $ 2billion company be bothered about a small Rs 3 crore player?", he asks. Any answers?