Government may seek help to keep Lambretta brand

New Delhi: The government wants to package the Lambretta brand along with other assets of Scooters India Ltd as it embarks on a strategic sale but it may need a bit of diplomatic help to achieve that end.

AUK-based entity through companies such as Lambretta Licensing Ltd (LLL) is using the brand to sell a range of products including watches and fragrance. A senior government official said that efforts to get in touch with these firms have not yielded results and using diplomatic channels may be the last resort.

“We are going to ensure that the brand Lambretta stays with Scooters India,” he said. That’s expected to maximise valuation. The government has already initiated a cabinet note to sell its 93.74% stake in the company. Heavy industries minister Anant Geete has said the modalities will be soon worked out. “If we go for strategic sale, the new owner will like to have the brand,” said the official cited above, adding that’s why the government was pushing for an early resolution.

There was no response to an email sent to Lambretta Licensing Ltd (LLL). On its website the company says: “Lambretta Licensing has been given the exclusive rights by Lambretta Srl to expand and develop the Lambretta brand globally.” SIL, however, maintains that it is the right and proper owner of the brand. ET was not able to reach out to Renati Sreenivasulu, chairman of the state-run firm. In its annual report for 2015-16, the company noted that it has initiated legal proceedings against Fine White Line Ltd. for recovery of royalty dues and protection of SIL’s rights related to the Lambretta trademark and an expenditure of Rs 42.07 lakh had been incurred during the year. LLL and Fine White Line share the same address in UK. An email sent to Fine White Line also did not elicit any response.

A senior official with the firm said SIL had entered into an agreement in 2006 with Fine White Line Ltd, a UK based firm, to use the brand for a range of products. “But they have not paid us the royalty and we started a case against them since 2009,” he said, adding that although the once-famous scooter is out of production. there is demand for spares.