Under the new framework, group companies will pay the promoter group for the use of the Aditya Birla brand, with royalty applicable from June 1, 2026. The royalty will be charged at 0.25% of revenue, subject to an annual cap of ₹225 crore.
Grasim Industries
Grasim will pay 0.25% of standalone revenue to the promoter group from June 2026, capped at ₹225 crore annually.
Himanshu Kapania, MD, Grasim Industries, said that based on estimated revenue of ₹50,000 crore, the royalty would amount to around ₹125 crore, well below the ₹225-crore annual cap.
Citi estimates the royalty payment at 0.25% of standalone revenue, while Jefferies estimates the annual cost at around ₹100-120 crore, or less than 5% of EBITDA.
Hindalco Industries
Both Novelis and Hindalco‘s India operations will pay 0.25% of revenue as brand royalty to the promoter group from FY27, subject to the ₹225-crore annual cap.
Satish Pai, MD, Hindalco Industries, said the framework marks a shift from family-driven stewardship towards a more structured governance model. He added that the royalty remains below Hindalco’s materiality threshold.
