Aditya Birla Group firms to pay 0.25% royalty, ₹225cr cap
Starting June 1, 2026, Aditya Birla Group's listed companies will pay a brand royalty of 0.25% of their revenue to the promoter group, with an annual cap of ₹225 crore per company.
This new system is meant to bring in extra revenue and set clear rules for using the group's brand name.
Grasim Industries expects ₹125cr royalty
Grasim Industries expects its annual royalty payment to be about ₹125 crore, well within the cap, based on projected revenues.
Hindalco Industries will follow suit from fiscal 2027.
Hindalco managing director Satish Pai said the framework marks a shift from family-driven stewardship toward a more structured governance model and confirmed that these payments won't impact their finances in any major way.
Analysts say Grasim's royalty will stay below 5% of its EBITDA, so it shouldn't be a big deal for its bottom line.