The company recently announced that it has bought over the brand rights of its soaps, cosmetics and toiletries products from Godrej & Boyce for a consideration of Rs 18 crore.

Company officials confirmed that the brand rights of Godrej Foods' products - which includes the `Jumpin' fruit drink - have been purchased by Godrej Soaps. However, no decision has been taken as to whether Godrej Foods would have to pay a royalty to Godrej Soaps to use the trademark of its food brands.

When contacted, a Godrej Soaps spokesperson said that there is no decision yet as to whether Godrej Foods will be charged a royalty on the food brands, as Godrej Soaps is a parent company.

Godrej Foods was earlier paying a fee to Godrej & Boyce for using the brand trademark. Sources said that Godrej Foods may have to, as is decided in the future, pay a fee to Godrej Soaps, which is the new owner of the trademark.

In a recent press statement announcing the trademark transfer deal, Godrej Soaps had said: "... the board of directors of Godrej Soaps has approved the purchase of the trademarks in relation to the toilet soaps, cosmetics, toiletries, chemicals and other products manufactured, marketed and/or distributed by the company."

The important trademarks, which would now be owned by the company, include "Godrej" in stylised form for use in consumer products, chemicals and other businesses, Cinthol, Godrej No 1, Crowning Glory, Marvel, Evita, Godrej Ganga, Godrej FairGlow, Godrej Nikhar and Godrej Allcare, the company had stated.

The move is aimed at enhancing shareholder value as Godrej Soaps owns the trademark for all the brands and products that it markets and distributes.

Since Godrej Soaps is undergoing a demerger, the new company - Godrej Consumer Products - will own its consumer products brand rights with effect from April 1, 2001. Other associate companies include Godrej Sara Lee, Godrej Agrovet, Gold Mohur Foods & Feeds and Godrej Properties and Investments.