There were two Heroes, and each saw the other as the villain, as it were. One of their battles has just ended. The legal fight between the Hero MotoCorp and the Hero Electric over the usage of the trademark 'Hero' for electric vehicles (2-wheelers) has got a verdict.
An arbitration tribunal appointed to resolve the dispute between two factions of the Munjal family group (that own the various 'Hero' companies) has dismissed the application filed by the country's top EV-maker (two-wheeler) Hero Electric for an interim injunction against Hero MotoCorp for using the brand ‘Hero’ for its electric vehicles. Basically, the country's largest two-wheeler maker Hero MotoCorp can use the 'Hero' trademark to sell its upcoming electric vehicles.
For the record, Hero MotoCorp has unveiled a new brand Vida for its emerging mobility solutions and upcoming electric vehicles. The first electric vehicle under the Vida brand is expected to be unveiled in a couple of months. The latest legal victory will doubtless add impetus to the proceedings.
The complicated case and its background
The case is unfortunately an internecine family feud that spilled on to the courts. The case is a bit complicated. The vast Hero Group with many companies in its fold (all carrying the name 'Hero' was founded by Brijmohan Lall Munjal. It was run as, in typical Indian style, as a large conglomerate from one large joint family. But as it happened, the Munjals had internal differences, and the family decided to split the various 'Hero' companies amongst themselves.
As per an agreement hammered out in 2010, Brijmohan Lall Munjal’s family got control of flagship firm Hero MotoCorp and Hero Corporate Services. Hero Cycles, Hero Motors and Munjal Sales Corporation went to his brother Om Prakash Munjal, whose son Pankaj Munjal is currently chairman of Hero Cycles.
Dayanand Munjal and his son Vijay Munjal got hold of Hero Exports, Hero Electric and Sunbeam Auto. Vijay’s son Naveen Munjal is the managing director of Hero Electric.
As it happened, even though Hero MotoCorp the flagship company of the group is the leader in the traditional two-wheelers segment and helped establish the 'Hero' brand, the reality is Hero Electric predates it in the green vehicle segment. So when Hero MotoCorp decided to get into EV (2-wheelers) segment, Hero Electric sought an injunction against it using the 'Hero' trademark for its electric vehicles.
The arbitration tribunal, which consisted of former Chief Justice of India Dipak Misra and retired judges Indu Malhotra and Indermeet Kaur, did not find merit in stopping Hero MotoCorp from using the 'Hero' brand on the grounds that it has already made investments to the tune of Rs 400 crore in the business of electric vehicles and expenses of almost Rs 7,000 crore on brand building of 'Hero' in the past. For the record, Rs 65 crore has been invested by the Naveen Munjal Group in the promotion of ‘Hero Electric’.
Hero MotoCorp after announcing its entry into the EV segment, has forged a JV with Gogoro Inc, which runs the world’s largest battery swapping network. Even as it is readying its own 2-wheeler EV, Hero MotoCorp has also invested in electric scooter maker Ather Energy. Also, it remains to be seen whether Hero MotoCorp how it uses both the Hero and Vida brand together.
On the other hand, Hero Electric, which rolls outs it vehicles from its Ludhiana factory, is on an overdrive now. Hero Electric recently announced a joint venture with Mahindra Electric for manufacturing electtric two-wheelers. It has also tied up with many companies for improving the charging infra. It joined hands with Bolt for building over 50,000 EV charging points. Ditto with ElectricPe. Partnered with Sun Mobility for battery swap.
