BPL Mobile may seek more time to use brand name

The Essar group-owned BPL Mobile is believed to be seeking an extension to use the `BPL' brand name that is owned by Bangalore-based industrialist TPG Nambiar. The group intends to seek an extension for another couple of months, by when it would take a final decision on the name change.

According to sources close to the development, a decision on the name change was yet to be taken. The group was busy with other issues, including Hutchison-Essar sell off, in which it holds a 33 per cent stake.

Now, with the agreement to use the brand name expiring on March 31, the company would seek an extension. This need not necessarily be a financial dealing as the company has been using the trademark for over a decade. Essar officials said, "There are no immediate plans on the BPL brand and a decision will be taken in the due course".

BPL Mumbai, one of Mumbai's oldest cellular phone operators in the country, was planning to drop its existing brand name and rename the company. Essar Group had no plans to continue with the brand as it makes more financial sense to operate under a new name.

At present, the GSM operator pays a hefty fixed fees to BPL Group, which owns the brand through its flagship firm, BPL Industries. The top management of BPL Mobile has initiated discussions within the company for a brand change, as to enable a smooth transition to a new name.

In July 2005, the Essar group had acquired all circles and operations of BPL Mobile for Rs 4,400 crore. Though all the other circles were merged with Hutchison-Essar, the lucrative Mumbai circle was embroiled in a controversy between shareholders and was operated separately by the Ruias.

BPL Mobile was founded by Nambiar's son-in-law Rajeev Chandrasekhar and was later sold to the Ruias of Essar. As per the agreement with Essar, the brand name was to be used only for a year.