Mansion House dispute: Scales tip in favour of Tilaknagar for now

The Kishore-Chhabria-led Allied Blenders & Distillers (ABD), which is fighting rival Tilaknagar Industries for ownership of Mansion House, withdrew its notice of motion in the Bombay High Court last week seeking permission to launch the country's second-largest selling brandy in Himachal Pradesh and Uttarakhand.

The notice was withdrawn citing defects in approvals received to launch the brand in the two states. The withdrawal implies that ABD cannot launch Mansion House in the two states for now, setting it back in its fight for ownership of the Rs 400-crore brand.

In a mail, ABD's vice-chairman Utpal Kumar Ganguli said, " We will find out the basis of the allegations of the defects in the approval before deciding our next step," Ganguli said.
 

Tilaknagar's chairman and managing director Amit Dahanukar was not available for comment. A mail sent to him remained unanswered till the time of going to press. Tilaknagar, said persons in the know, was expected to monitor ABD's moves closely, since an attempt to launch or seek permission to launch Mansion House could eat into its business.

Mansion House is estimated to help Tilaknagar earn around half of its Rs 748.2 crore revenue. The brand trails United Spirits's McDowell's No 1 in the order of leading domestic brandies and is strong in the south, a big brandy market in India.

ABD has set its sights on Mansion House owing to the brand's position and the potential it sees of growth. ABD has maintained that it should be allowed to launch the trademark under it, since it owns 50 per cent of Mansion House's brand rights in India and South Asia, a deal it struck with the original owner, Herman Jensen, in 2014.

ABD became a party to the ownership dispute between Herman and Tilaknagar for Mansion House in 2014 owing to this deal. Tilaknagar, on the other hand, claims that rights to Mansion House and another brand Savoy were ceded to it by Herman in 1987, which the latter says was never legally solemnised. The ensuing court battle between Herman and Tilaknagar, which began in 2008, saw a favourable verdict coming the latter's way. It was allowed by a single-judge bench of the Bombay High Court in 2011 to continue manufacturing and marketing Mansion House in the country.

ABD, in the interim, began talks with Tilaknagar to acquire a controlling stake in the debt-laden company. "There were discussions between the two companies for ABD buying a controlling stake in Tilaknagar, but unfortunately, due to the indecisiveness of Tilaknagar, the discussions have since been aborted," Ganguli said.

Dahanukar, who belongs to the promoter family, spurned offers from ABD because he was not keen to cede control of Tilaknagar.

JOURNEY OF A TUSSLE

• Early 1980s: Tilaknagar signs agreement with Hermen Jensen to manufacture and market Mansion House in India
   
• 1987: Tilaknagar claims Herman Jensen ceded brand rights of Mansion House brandy to it
   
• 2008: Herman moves court saying agreement to cede brand rights of Mansion House was not legally solemnised
   
• 2011: Bombay High Court rules in favour of Tilaknagar; saying it holds right to manufacture and market Mansion House in India
   
• 2014: ABD becomes a co-plaintiff after acquiring 50 per cent brand rights of Mansion House and Savoy from Herman for India and South Asia
  

 

2015: ABD makes offer to acquire controlling stake in Tilaknagar; move is rebuffed by Tilaknagar

HOW IT UNFOLDED

• ABD has withdrawn its notice of motion in the Bombay HC, seeking permission to launch Mansion House in Uttarakhand and Himachal Pradesh
   
• The notice was withdrawn citing defects in approval received from the states to launch the brand
   
• Move seen as a temporary setback to ABD, which has been fighting Tilaknagar for ownership of Mansion House
   
• ABD to decide on next course of action after weighing all options