Essar may hang up on BPL brand

BPL Mobile, one of Mumbai's oldest cellular phone operator, is looking at dropping its existing brand name as Essar's agreement with the TPG Nambiar-owned BPL on the use of its trademark expires by March-end.

In July 2005, the Essar Group had acquired all circles and operations of BPL Mobile for Rs 4,400 crore.

Essar Group has no plans to continue with the brand as it makes more financial sense to operate under a new name, industry sources said.

In fact, the top BPL Mobile management has already initiated discussions within the company for a brand change so that the transition to the new brand could be a smooth affair. The company, at present, pays a hefty fixed fees to the Bangalore-based BPL Group, which owns the brand through its flagship firm.

BPL Mobile was founded by Nambiar's son-in-law Rajeev Chandrasekhar and was later sold to the Ruias of Essar. As per the agreement with Essar, the brand name was to be used only for a year.

"We extended the use of brand name for a year and as the agreement expires this March, we are looking at the option of bringing in a new brand name," sources said.

In the case of Hutch, even though the Ruias held 33 percent stake in the Hutchinson Essar, its brand was seldom promoted by the Hutchinson management.

Though all the other circles were merged with Hutchinson Essar, the lucrative Mumbai circle was embroiled in a controversy between shareholders and was operated separately by the Ruias.

What's in a name?

BPL Mobile pays heavy royalty to the Nambiars

Agreement expires by March-end

Ruias keen to promote own brand names

Will help BPL Mobile to cut costs