AHMEDABAD (TIP): City-based textile conglomerate Arvind on Monday said its subsidiary Arvind Lifestyle Brands (ALBL) and US Polo Association (USPA), USA will jointly pay $3.2 million (Rs 20 crore approx) to Ralph Lauren Corporation (RLC) USA to settle a lawsuit filed by it in a US court in 2013.
Ralph Lauren had filed a case in a district court in US against ALBL and USPA alleging breach of agreement due to non-compliance in respect of disclaimers to be printed on USPA products sold in India. ALBL has licence to manufacture and market USPA-branded products in India.
“The parties got into good faith discussions and agreed to enter into an amicable settlement without admission of liability of any party,” Arvind informed the Bombay Stock Exchange (BSE). The company further said, “Under the terms of the settlement, ALBL and USPA have agreed to pay jointly settlement amount to RLC. As per the settlement agreement, ALBL shall pay $3,200,000 in full settlement and satisfaction of the dispute between the parties.”
Ralph Lauren had first issued a notice for arbitration to be held in India against ALBL and USPA and the company was successful in obtaining a temporary injunction against the commencement of the arbitration from the jurisdictional court in India. Later, Ralph Lauren went ahead and filed a lawsuit in the US Court. Arvind has a large portfolio of owned and licensed brands and retail formats. The company’s own product brands include Flying Machine, Colt, Ruggers and Excalibur, among others, while its licensed product brands have global names like Arrow, Gant, Izod, Elle, Cherokee and US Polo Assn, among others. It also has a joint venture in India with global major Tommy Hilfiger.