Three listed Jubilant Bhartia Group companies will start paying out corporate brand royalty to Jubilant Enrpo (a promoter group company) from FY20 for the use of the ‘Jubilant’ brand name. The move is being seen as the promoter’s efforts to derive a revenue stream from the brand.
The three listed companies — Jubilant FoodWorks, Jubilant Life Sciences and Jubilant Industries — will pay 0.25 per cent of their respective consolidated revenues to Jubilant Enpro.
According to three separate BSE filings, the boards of Jubilant FoodWorks , Jubilant Life Sciences and Jubilant Industries on Tuesday approved this arrangement.
Meanwhile, Jubilant FoodWorks, which operates Domino’s Pizza, said on Tuesday the National Anti-Profiteering Authority (NAA) did not take into account the impact of input credit withdrawal while passing its order against the company.
NAA order
The NAA fined it ₹41.42 crore on Monday for not passing on the benefit of a reduction in GST to consumers.
“We would like to assert that the loss to the company due to input credit withdrawal was far higher than the price increase that was taken, and this wasn’t taken into account by the NAA,” said the company in a statement.
“In the absence of any explicit rules and guidelines, we followed the spirit of the law and passed on the benefit of GST reduction to our customers with immediate effect,” it added.