The Bombay High Court has issued a significant modification to its earlier order regarding the use of Kirloskar trademarks, impacting the dynamics within the Kirloskar group of companies. This development comes as part of an ongoing legal dispute involving Kirloskar Brothers Limited (KBL) and Kirloskar Proprietary Limited (KPL).

Key Points of the Modified Order

• Original Order Date: July 25
• Petitioner: Kirloskar Brothers Limited

Details of the Modification

The court has now expanded its restrictions on KPL's ability to use the Kirloskar trademarks. The key changes are as follows:

Implications of the Order

1. Restricted Trademark Usage: KPL is now restrained from both licensing and assigning Kirloskar marks to other group companies for businesses that compete or overlap with Kirloskar Brothers Limited.

2. Limited Licensing Rights: While KPL can still create licenses for Kirloskar marks in favor of its member companies as per its articles of association, it cannot extend this right to other Kirloskar group companies that might compete with KBL.

3. Financial Impact: Kirloskar Brothers Limited has stated that the expected financial implications of this litigation cannot be determined at this time.

Background of the Dispute

This modification is part of an ongoing legal battle within the Kirloskar group. The dispute traces back to earlier court proceedings, including:

• An order by the Pune Court on January 9
• The Bombay High Court's initial ad-interim order on July 25
• Previous disclosures by Kirloskar Brothers Limited on July 4, 2018, January 21, and August 12

Conclusion

This latest court order represents a significant development in the trademark dispute within the Kirloskar group. It underscores the complexities involved in managing intellectual property rights within large business conglomerates, especially when different group companies have overlapping or competing interests. The full impact of this decision on the operations and relationships within the Kirloskar group remains to be seen, and further developments in this ongoing legal matter are likely to be closely watched by stakeholders and industry observers alike.

Kirloskar Brothers Limited (KBL), a leading pump manufacturing company, has announced a significant business development that is set to boost its position in the Oil & Gas sector. The company has received a substantial order from Indian Oil Corporation Limited (IOCL) for the supply of more than 14,000 pump sets, marking a notable achievement in its business operations.

Order Details

The order, described as prestigious by Kirloskar Brothers, involves supplying pump sets for the retail market in the Oil & Gas Sector. This development underscores the company's strong foothold in providing critical equipment to one of India's largest public sector undertakings in the oil and gas industry.

Contract Specifics

Strategic Importance

This order is particularly significant for Kirloskar Brothers as it strengthens its presence in the retail market of the Oil & Gas Sector. The company's ability to secure such a large order from a prominent client like IOCL demonstrates its competitive edge and the trust it has garnered in the industry.

Compliance and Disclosure

In compliance with regulatory requirements, Kirloskar Brothers has made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that this order does not fall under related party transactions, and none of its promoter group or group companies have any interest in IOCL.

Market Impact

While the exact financial value of the order has not been disclosed, the scale of over 14,000 pump sets suggests a substantial boost to Kirloskar Brothers' order book. This development is likely to have a positive impact on the company's revenue and market position.

The successful execution of this order within the stipulated timeframe of 12 months will be crucial for Kirloskar Brothers to capitalize on this opportunity and potentially secure similar high-value contracts in the future.

Investors and market analysts will be keenly watching how this order affects Kirloskar Brothers' financial performance in the upcoming quarters, as it represents a significant business opportunity for the company in the competitive pump manufacturing sector.