Court restrains HUL from using Kwality Walls brand for milk products

This was in response to a objection filed by India's largest FMCG player Hindustan Unilever Limited against Kwality Limited stating that it has sole right for the Kwality brand.

HUL had objected to the use of Kwality brand name for ready-to-use milk products by Kwality Limited claiming that it is causing confusion in the minds of consumer who might think it's an extension of HUL's Kwality Walls ice cream brand.

Although, the Calcutta High Court objected to Kwality Limited using original style of writing Kwality on its milk products, the court also restrained HUL from launching dairy category with Kwality brand. Also, Kwality Limited is restricted from launching ice cream/frozen desert under Kwality brand.

Diary maker Kwality Limited has launched a range of ready-to-consume milk products including fortified flavoured milk, buttermilk and lassi in tetrapacks, under brand name Kwality.

With growing awareness about ill-effects of soda-based beverage, Indian consumers are opting for more healthier options like milk-based beverages and ice creams. The ice cream/frozen desserts segment have shown healthy growth in India. HUL is the second largest player in the ice cream segment following Amul, which is the market leader. For Q4FY18, HUL registered double-digit volume growth in its Ice Cream & Frozen Desserts segment, achieved mostly through geographic expansion.

Meanwhile, at 12:02 hours on Monday, the stock of Kwality Limited was trading at Rs. 48.05 per share, up by 1.80 per cent and HUL was at Rs. 1, 580.25 per share, 0.29 per cent.