Aditya Birla firms to now pay to use the family name
The Aditya Birla Group has implemented a new brand royalty framework that will require its listed operating companies to pay the promoter group for the use of the Aditya Birla name, effective June 1, 2026. Under this new system, each group company will be obligated to pay 0.25% of its revenue as a royalty, with an annual cap of Rs 225 crore per entity.
Grasim Industries, a key subsidiary of the Aditya Birla Group, will be the first to pay the royalty, paying 0.25% of its standalone revenue to the promoter group starting June 2026. The management at Grasim estimates that this will result in a royalty outflow of approximately Rs 125 crore per year, well within the Rs 225 crore annual limit.
Hindalco Industries and its US-based subsidiary Novelis are also subject to the new royalty structure, which will come into effect from fiscal year 2027 (FY27). Both companies will pay 0.25% of their revenue as the brand royalty, with the same Rs 225 crore annual cap applying to each entity.
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