New Delhi: The fight over the ownership of the Hero brand shows no signs of abating.
Naveen Munjal, the managing director of country’s largest electric two wheeler company Hero Electric has said he wants an amicable solution with his uncle Pawan Munjal, the chairman, MD and CEO of Hero MotoCorp over the small matter of ownership of Hero brand for EVs. But there is radio silence between the two sides and the signs are ominous.
“Nobody has called me. There is no discussion at this point,” Naveen Munjal told ETAuto. “I’m completely open for any discussions….for finding any resolutions around it. That’s absolutely not a problem. It’s all family. And we won’t want to go down any unpleasant routes. I have any regard for my uncle. As a family, we’ve always strived to maintain family relations and decorum. Even the family settlement in 2010 was very amicable.”
He believes he has the right over the Hero brand for electric vehicles as part of the family agreement from a decade ago. His company is also an early mover in the electric space, which is now clearly the future of the industry. But his uncle’s Hero MotoCorp is preparing for an entry into his turf and while they have not revealed the name of their products, they have not admitted to not using the Hero badge, something that is associated with all their existing products.
“There is a family understanding in place, which everyone in the Munjal family is well aware of, and everything is being done within the parameters of the understanding and the Agreement,” a company spokesperson said. “The brand names used on the vehicles even as on date speak for themselves. The Family Agreement is crystal clear.”
Naveen Munjal disagrees.
“There is complete clarity and no ambiguity at all. There is no non compete on business categories. But there is a very strong non compete on the brands,” he said. “And we are very, very clear on what we have…..complete ownership of the brand that is Hero for environmental friendly vehicles at a global level. So this is the ownership and that is what we will have to protect.”
There is no non compete on business categories. But there is a very strong non compete on the brandsNaveen Munjal, Hero Electric
No side looks ready to back down or cede an inch. Sources close to Pawan Munjal’s family say the 2010 agreement specifically gave Naveen Munjal the right over “Hero Electric” as a brand and not over “Hero.” In fact, brand “Hero” was given to Pawan Munjal’s father Brijmohan Lall Munjal’s side of the family. In an event celebrating 10 years of its solo journey earlier this week, Pawan Munjal gave a glimpse of its upcoming electric scooter and reiterated his commitment to electric vehicles for the future. The scooter carried no branding.
Pawan Munjal has also been active as an investor in the electric two wheeler space in companies like Ather Energy and Ola Electric. The latter plans to go big in scale and will be launching its first product this Sunday. Both are direct rivals to Naveen Munjal’s Hero Electric.
There is a family understanding in place, which everyone in the Munjal family is well aware of, and everything is being done within the parameters of the understanding and the AgreementHero MotoCorp
“Look, every company will have their own strategy on where they want to invest in what they want to do with investments,” Naveen Munjal says. “I can’t comment on whether it’s the right investment or not. That said, it’s all family. And we won’t want to go down any unpleasant routes.”
Yet, the battle lines are being drawn. Hero Electric wants to hold on to its position as the market leader in the electric two wheeler space. Hero MotoCorp once it forays into the category, would want to dislodge it. Before that, they have a battle over the family brand name.
“We have the brand for environmental friendly vehicles, electric vehicles, all forms of land vehicles. And if our lawyers see that there is an encroachment on that, then we will have to take adequate action,” Naveen Munjal adds.
When the first electric vehicle rolls out from Hero MotoCorp’s factory later this fiscal, fireworks are guaranteed.
Naveen, son of Pawan’s cousin Vijay Munjal, runs the Hero Electric two-wheeler business since 2007, and said his family received “global rights over the Hero brand name in perpetuity for electrics”, be it for personal-consumer use, or the commercial market.
