Mafatlal Industries signs trademark licensing deal with related party trust

Mafatlal Industries Limited (MIL) announced on October 1, 2025, that it has executed a Trademark Licensing and Royalty Agreement with M/s. Gurukripa Trust. The agreement grants MIL and its subsidiary companies the right to use trademarks owned by the Trust. The Trust qualifies as a related party because the company’s promoters, H. A. Mafatlal and P. H. Mafatlal, who serve as chairman and managing director respectively, are also trustees of the Gurukripa Trust.

Under the terms, MIL will pay a royalty to the Trust calculated at 0.5% of net sales, capped at a maximum of 5% of profit before tax (PBT), exclusive of applicable taxes. Royalty payments will be made on a quarterly basis, commencing from October 1, 2025. Invoices for royalty payments will be issued by the Trust within 15 days of MIL’s announcement of its unaudited financial results for the relevant quarter.

The company stated that the agreement, while between related parties, was executed on an arm's length basis, with all transactions conducted in accordance with prevailing market practices. This disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.