Company that had accused the Baba Ramdev-promoted outfit of copying design of its Kesh King brand, settles copyright dispute
Emami is not scared of Patanjali, and instead believes the emergence of this new phenomenon would only expand and create consumer awareness about the Ayurvedic category.
"When our sectoral peers promote ayurvedic products, they raise the level of water for the entire category by enhancing consumer awareness. Being one of the most prominent players in this category, we stand to gain from developments like these," S K Goenka, managing director, Emami said in its annual report. Emami in March had accused the Baba Ramdev-promoted outfit of copying design and trademark of its Kesh King brand of hair tonic, but dna has learnt that both the companies have gone for mutual settlement.
Following the filing of the case in the Calcutta High Court, Emami presented before the court a letter detailing terms of settlement between the two parties following which the suit has been withdrawn by Emami. Emami is one of the handful of desi FMCG players who have been formulating its product range mostly using ingredients that can be termed Ayurvedic.
It acquired brand Zandu in 2008-09, giving it access to a rich Ayurvedic legacy helping it to branch into ethical, OTC and generics categories. Emami repositioned the Zandu portfolio to introduce products that enhanced recall, revenues and market share. But that was before Baba Ramdev overwhelmed the entire FMCG sector with his plethora of products from toothpaste to honey to hair oil, each espousing benefits of Ayurveda.
That is helping companies like Emami, or even Dabur, as awareness about Ayurveda grows backed by media blitzkrieg, which none of the existing companies could afford. "Imbibing Ayurveda India's age-old rich tradition of Ayurveda is fast becoming a popular option of beauty and wellness globally. With more and more people opting for natural goodness in products, ayurvedic products have found shelf space in almost all households. The segment is largely untapped, thus offering huge growth potential," Goenka has been quoted as saying.
Emami's latest brand acquisition has been an Ayurvedic offering as well, following which it had a run in with Patanjali. Emami in 2015 acquired ayurvedic hair and scalp care business under the Kesh King brand a category that it believed was extensively under-penetrated.
While the acquisition had its own teething problems including issues with outstanding stocks, Emami has to now live with an emerging rival in the form of Patanjali's Kesh Kanti.
m_sumit@dnaindia.net
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