Safari Industries (India) Limited has executed a significant Licensing Agreement with Carlton Retail Private Limited for the exclusive use of the brand name “CARLTON” in India, specifically for products under Class 18, including luggage. The agreement establishes a substantial 20-year term, potentially renewable for another 20 years. Key financial obligations include an annual license fee structure based on sales and a large, interest-free security deposit of ₹99.50 Crore to be paid in tranches.
New Licensing Agreement Executed
Safari Industries (India) Limited has formally entered into a Licensing Agreement with Carlton Retail Private Limited (“CRL”). This strategic move secures the rights for Safari to utilize the globally recognized brand “CARLTON” within India for specified products falling under Class 18, notably luggage.
Key Terms of the Agreement
The details of the agreement highlight several significant long-term commitments and financial structures:
- Term Duration: The initial term of the agreement is set for 20 years, with the discretion to renew for an additional 20 years.
- License Fee Structure: The annual license fee payable to CRL will be the higher of Rs. 45 Lakh or 5% of total net sales achieved in that license year.
- Security Deposit: A substantial, interest-free refundable Security Deposit amounting to Rs. 99.50 Crore is required to be paid to CRL over a defined period, subject to specific conditions outlined in the agreement.
Compliance and Relationship Status
The disclosure confirms that the parties involved are not related to the promoter/promoter group, and the transaction does not fall within the scope of related party transactions. Consequently, no details regarding share issuance, loan agreements, or board nominees are applicable to this specific licensing deal.
Source: BSE
