By Yassir A Pitalwalla Oct 07 2009 , Mumbai

The Aditya Birla group is close to settling a trademark dispute with the Mariwalas, who control the BSE-listed Marico, a fast moving consumer goods (FMCG) company.

A senior Birla official told Financial Chronicle that the trademark suit filed by Marico against Grasim in the Delhi high court would be settled amicably out of court.

Marico sued the Birla company in February for using the word Kara in a skin wipe range. Marico’s stand was that the Birla brand sounded similar to its own registered trademark, Kaya Skin Wipes. Marico also moved the trademark registry.

Marico had launched Kaya skin clinics in India in 2002; Grasim launched Kara Skin Wipes in 2007.

On August 28, lawyers of the two companies requested the court to adjourn the hearing because the two sides were likely to settle the matter out of court.

Milind Sarwate, Marico chief for finance, HR and strategy, said a dialogue with Grasim was on after a court instruction to resolve the issue. “This dialogue could lead to an out- of- court settlement. We will be in a position to provide details only after the next hearing on December 14, 2009.”

A Kaya official said an agreement was being worked out. “It could take a month or two. Once done, the agreement will be filed with the high court for approval,” he said.

Kara wipes are made from viscose pulp and its derivatives. Grasim is one of the biggest viscose processors in the world. Kara was its first attempt to enter the consumer products using viscose staple fibre. The company plans more products as it raises its viscose staple fibre capacity by a quarter at Vilayat in Gujarat, investing Rs 1,000 crore.

Grasim says Kaya Skin Wipes are consumed in-house by Kaya Skin Clinics, while Kara Skin Wipes are sold at retail outlets. But Kaya recently launched a range of products for men and women for sale through shops.

(With inputs from Rupesh Janve)