Bajaj Electricals allows Bajel Projects to use 'Bajaj' trademark for 3 years under licence agreement

Bajaj Electricals on Tuesday (March 12) said that it has entered into a licence agreement with its arm Bajel Projects, allowing the later to use the 'Bajaj' trademark for a period of three years. Bajaj Electricals will charge 1% royalty from Bajel Projects for the revenue generated from the use of the trademark.

Both the companies are part of the same group of companies; however, neither company holds shares in the other, Bajaj Electricals said in a regulatory filing.

"Pursuant to the relevant provisions of the Scheme of Arrangement between Bajaj Electricals Limited and Bajel Projects Limited, and their respective shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, which became effective from September 1, 2023 with the approval of the Hon’ble National Company Law Tribunal, Mumbai Bench, the companies have, considering the smooth transition of the Power Transmission and Power Distribution Business from the demerged company to the resulting company, entered into a license agreement dated March 12, 2024," it said.