Bajaj Electricals has signed a definitive agreement to acquire the intellectual property and brand rights for ‘Morphy Richards’ across India and several South Asian territories, including Nepal, Bhutan, Bangladesh, Sri Lanka, and the Maldives. The total consideration for this landmark acquisition is set at ₹141.4 crore (net). This move grants Bajaj Electricals full ownership and strategic control over the premium brand, effective from the Transfer Date of March 16, 2026.
Bajaj Electricals Secures Morphy Richards Brand Rights
On March 16, 2026, Bajaj Electricals Limited announced the execution of definitive agreements to acquire the ‘Morphy Richards’ brand and associated Intellectual Property (IP) from Glen Electric Limited (part of the Glen Dimplex Group, Ireland). This acquisition covers the territories of India, Nepal, Bhutan, Bangladesh, the Maldives, and Sri Lanka.
This strategic move follows a successful collaboration spanning over two decades under licensing arrangements. By gaining full ownership, Bajaj Electricals aims to strengthen its multi-brand strategy, allowing for deeper investment in innovation, design, and go-to-market execution for the premium home appliances segment.
Transaction Financial Details
The basic net consideration payable to the Seller for the Business Intellectual Property and Goodwill under the Sale and Purchase Agreement (SPA) is set at INR 141.40 crore, to be paid in GBP Sterling across three instalments:
- INR 49.00 crore on the Transfer Date (March 16, 2026).
- INR 49.00 crore on or before March 31, 2027.
- INR 43.40 crore on or before March 31, 2028.
The total consideration cost, inclusive of Withholding Tax and Stamp Duty, amounts to INR 168.00 crore. The total estimated cash outflow, inclusive of GST at 18%, is INR 197.47 crore.
Key Definitive Agreements Executed
The Company executed three primary agreements on the Transfer Date:
- Agreement for the Sale and Purchase of Trade Marks, Goodwill and Domain Names (SPA): This ensures the absolute, perpetual, and irrevocable assignment of the Business Intellectual Property in the specified Territories.
- Termination Letter Agreement: This terminates the Trade Mark Licence Agreement, originally dated March 17, 2022, and novated effective December 1, 2022.
- Deeds of Assignment for Territories: Executed simultaneously for recording the assignment before respective trade mark registries.
Implications of Termination
The termination of the previous Licence Agreement, which was originally set to expire in 2037, is consequent to the acquisition. The termination does not impact prior accrued claims or rights. However, outstanding royalties aggregating GBP 641,780.14 owed by the Company to Glen Electric Limited under the terminated agreement will be paid as per the settlement schedule.
Seller Commitments and Non-Challenge Clause
Under the SPA, the Seller has agreed to several critical terms:
- Non-challenge: The Seller and its Affiliates are restricted from challenging the Buyer’s ownership of the Business Intellectual Property in the Territories at any time.
- Assignment Rights: The assignment is complete and irrevocable, granting the Buyer the right to sue for past, present, or future infringements.
- Reversion of Rights: Until the full consideration is paid, the Buyer cannot dispose of or encumber the IP, though it retains the right to license the IP to third parties.
Management Commentary
Mr. Sanjay Sachdeva, MD and CEO of Bajaj Electricals Limited, stated that acquiring the Morphy Richards brand provides the strategic flexibility to invest more consistently, innovate faster, and accelerate growth across premium consumer segments.
Mr. Fergal Naughton, Executive Chairman of Glen Dimplex, expressed confidence that the brand will continue to thrive under Bajaj Electricals, citing their proven track record and deep understanding of the local consumer landscape.
Company Background
Bajaj Electricals Limited is a renowned Indian Consumer Appliances and Lighting Solutions company, part of the $100 billion multinational conglomerate Bajaj Group. The company reported a turnover of INR 4,828 crores for the financial year FY 24-25.
Source: BSE
