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Aditya Birla Group to charge ₹1,000 crore annually as brand fee

The Aditya Birla Group will start levying a new brand fee from June 1, 2026, expected to generate around ₹1,000 crore annually for its promoter entity.

The Aditya Birla Group will start levying a new brand fee from June 1, 2026, expected to generate around ₹1,000 crore annually for its promoter entity. The fee is set at 0.25% of the standalone revenue of all listed and unlisted group companies using the brand, with a cap of ₹225 crore per company, according to livemint.com.

This brand fee applies across the group’s 11 listed companies, including Hindalco, Grasim, UltraTech Cement, Novelis, Aditya Birla Capital, and Aditya Birla Fashion and Retail, as well as significant unlisted entities like Aditya Birla Renewables Limited and Birla Carbon. The promoter entity will collect the fees based on the revenue figures reported by these companies, ensuring a steady income stream from the brand’s usage within the group.

The introduction of this fee reflects a formal monetization of the Aditya Birla brand within the conglomerate, aligning with similar practices in large business groups where brand value is recognized as a significant asset. The ₹1,000 crore annual fee underscores the brand’s strength and its contribution to the group’s overall valuation. This move may influence how other Indian conglomerates approach internal brand licensing and revenue attribution.

The fee structure caps the charge at ₹225 crore per company, ensuring that no single entity bears a disproportionate cost. The new brand fee will be effective starting June 1, 2026, as per the announcement by the Aditya Birla Group detailed on livemint.com.

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