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Friday, September 11, 1998

Court stays sale of Captain Cook trade mark

ENS ECONOMIC BUREAU  
NEW DELHI, SEPT 10: The sale of "Captain Cook" trade mark by DCW Home Products Ltd to an American multinational has hit the air pocket with a Haryana court restraining the Indian company from selling its brand name.

In an ex-parte interim order recently Sonipat civil judge A K Aggarwal said "the defendant (DCW Home Products) is directed to maintain status-quo regarding selling, mortgaging, leasing etc the brand name of the company as `Captain Cook' till the next date."

DCW, last month, announced that it has decided to sell `Captain Cook' brand name to Corn Products Company (India) Ltd, a subsidiary of US-based $ 8.4 billion Bestfoods Inc.

The court order came on a petition filed by a supplier of flour to DCW, Trinetra Builders Pvt Ltd, which claimed that they had a three year contract for supply of atta under the brand name of "Captain Cook".

The petitioner contended that as per the agreement between DCW and Trinetra, defendant has no right to sell, lease, mortgage its brand name to othercompany till the expiry of the contract on May 31, 1999.

Trinetra also charged DCW of withholding payments worth Rs 31 lakh and not lifting wheat flour manufactured by the petitioner.

Trinetra has also served a winding up notice to the defendant under section 434 of the Companies Act, 1956 and will seek winding up of DCW Home Products if it fails to respond to the notice within 21 days.

As per the agreement, Trinetra can not manufacture atta for any other company during the contract period and DCW has not lifted the atta for last several weeks.

According to the agreement, DCW was supposed to buy a minimum of 200 metric tonnes of atta per month. The case will come up for further hearing on September 24.

Corn Products Company (CPC) sources said they are not buying the atta business of the company but DCW cannot now market the atta with the Captain Cook name.

CPC will buy salt division and one of DCW's plants at Gandhidham which produces salt. The branded saltmarket is pegged at seven lakh tonnes valued at Rs 280 crore.

Industry sources, who put sales of Captain Cook salt at Rs 75 crore, said that sellout is in line with DCW's stated strategy of exiting the consumer goods business.

CPC India's parent company, Bestfoods does not have salt in its product portfolio elsewhere in the world.

The core business of Bestfoods International revolves around Hellmann's mayonnaise and salad dressings, Knorr soups and sauces, skippy peanut butter and desserts, Bestfoods dressings, Mazola corn and Canola oils and pot noodle instant hot snacks.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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