Apparel maker Arvind Ltd's lifestyle brands arm Arvind Lifestyle Brands Ltd (ALBL) has agreed to pay $3.2 million to US-based textile maker Ralph Lauren Corporation (RLC) to settle the dispute between the companies, according to a stock market disclosure.
In October 2013, RLC had filed a case against ALBL and US Polo Association (USPA) alleging breach of agreement regarding disclaimers to be printed on USPA branded products sold in India.
Arvind Ltd has now informed BSE that "the Parties thereafter got into good faith discussions and agreed to enter into an amicable settlement without admission of liability of any party."
Luxury fashion company RLC 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.
Later in 2013, RLC had instituted the lawsuit against both the companies alleging breach of agreement on account of non-compliance in respect of disclaimers to be printed on USPA products sold in India. Arvind Lifestyle has the licence to manufacture and market US Polo branded products in India.
Ahmedabad-based ALBL (formerly Pinnacle Risk Advisory Services Ltd) is a retailer of apparels and retails brands like Arrow, Gant, Izod and Flying Machine.
In 2013, the company signed an agreement to market and sell in India the basic and intimate apparels under the Hanes and Wonderbra brands, through a licensing agreement with the US-based Hanesbrands Inc.
Prior to that, it had signed a long-term licensing agreement with Iconix Lifestyle India Pvt Ltd (a joint venture between US-based Iconix Brand Group and Reliance Brands Ltd) for Ed Hardy.
Shares of Arvind last traded at Rs 268.30 each, up 1.73 per cent on BSE in a strong Mumbai market on Monday.
(Edited by Joby Puthuparampil Johnson)