Trademark Tussle: Delhi HC Freezes Dabur's 'Cool King' Sales in IP Victory for Emami

Market snapshot: The Delhi High Court has granted an injunction restraining Dabur India from selling its 'Cool King Thanda Tael' in packaging deceptively similar to Emami's flagship 'Navratna Ayurvedic Oil'. Justice Tejas Karia ruled that Dabur's packaging constituted a 'deliberate imitation' of Emami's trade dress, which commands a 66% market share in the cooling oil segment.

Summary: Dabur blocked from selling 'Cool King' in current packaging due to trademark infringement against Emami's Navratna. Emami protects its dominant 66% market share.

Key Takeaways

• Legal Moat: Court affirms Emami's trade dress rights (red color, hibiscus imagery) for Navratna, established since 1989.
• Operational Impact: Dabur must recall or repackage 'Cool King', impacting its push into the cooling oil niche.
• Market Dominance: Emami defends its core revenue generator (66% segment share) against a deep-pocketed rival.

SAHI Perspective

This ruling reinforces the 'moat' around legacy FMCG brands in India. For Dabur, while financially minor relative to its ₹3,559 Cr quarterly revenue, it represents a strategic stumble in diversifying its portfolio. For Emami, this is a critical defense of its cash cow ahead of its earnings release on February 4, 2026. Investors should watch for Dabur's repackaging speed and Emami's volume growth commentary.

Closing Insight

Intellectual property remains a potent competitive weapon in India's crowded FMCG shelves. Emami's legal win signals to the market that it will aggressively defend its territory.

High Performance Trading with SAHI.