A resolution to pay 0.25 per cent of the net consolidated turnover as licence fee has been cleared by the shareholders of the company at its annual general meeting (AGM) held here today, a senior company official said.
The Audit Committee and the Board of JSW Steel had already cleared the proposal.
JSW Steel had sought shareholders' approval for permitting "the company to enter into appropriate agreement with JSWIPL for use of the brand "JSW" and to pay a license fee of 0.25 per cent of the consolidated net turnover of the company".
Promoters, led by Jindal, holds 38.54 per cent in JSW Steel.
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The brand "JSW" is being used by companies which are managed by Sajjan Jindal. JSW Group has a sizable presence in core sectors of the Indian economy. Considering its track record, the JSW Brand has gained recognition and is now ranked at No. 32 in India with a brand value of USD 701 million as per Brand Finance Rankings 2013, the company said.
JSW Steel said that the company has, in many ways, been able to leverage the JSW brand to its advantage in terms of attracting and retaining talent besides enhancing long term business opportunities.
Justifying the proposal, the company said a levy in the range of 0.15 per cent - 0.50 per cent of the consolidated total operating income as brand license fee is being charged by brand owners in various groups for the brand usage.