New Delhi: Brilloca, makers of ‘Hindware’, have won their litigation against ICICI Securities. The battle started when the later published an industry report on April 28, 2020, declaring HSIL as “most notable losers in last fiscal” with a headline “Jaquar pips HSIL; become India’s No. 1 sanitaryware brand.”The report was also uploaded by Jaquar on their LinkedIn page.
Brilloca Ltd. claimed that the report was “highly defamatory, libelous, false, disparaging and malicious” and requested for an addendum. ICICI Securities published an addendum on 6th May 2020 that declared “Jaquar sustains growth momentum in testing times”.
Brilloca Ltd. was not happy with the addendum that started on the note – “The undisputed market leader in faucets, Jaquar, has been one of the fastest-growing brands in the sanitaryware segment over the past 3-4 years. We believe the growth is largely attributable to its rapidly growing brand equity, strong distribution network, and innovative capabilities.”
ICICI Securities referred to Brilloca Ltd. in the addendum as “While the last couple of years have been challenging for the industry (including Brilloca and Cera), we expect these brands of such strong repute to take appropriate steps to bounce back as and when the industry turns around.”
Disappointed by this addendum, Brilloca Ltd. filed a suit against ICICI securities demanding an explanation and withdrawal of the report that was “highly defamatory, libelous, false, disparaging and malicious”.They claimed Rs 2.5 crore as damages as well for defamation.
“Our Annual Report for Financial Year 19-20 has not yet been filed or even finalized, the “ostensible comparison” of us with our competitor was based on complete falsehood and malice,” Sandip Somany, Chairman and Managing Director, Brilloca Ltd. said. The Report is, therefore, violates SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, and SEBI (Research Analysts) Regulations, 2014.
On 14th May 2020, the Delhi High Court issued a notice to ICICI Securities to communicate the contents of substitute reports to all concerned and issue a clarification about the misleading content. It also ordered Jaquar Company to immediately delete the report from their LinkedIn page.
The next hearing for the case will be on 22nd July 2020.
“It’s disappointing that a reputed body like ICICI Securities should indulge in such biased activities. This report shows their careless approach towards research and reporting, which is very disheartening,” said Sandip Somany, Chairman and Managing Director, Brilloca Ltd. said, Brilloca has been a leader in sanitaryware and bathware solutions since 1962.
Brilloca Ltd.’s mission has always been ‘Helping our customers adopt a comfortable, luxurious, and sustainable lifestyle while fostering innovation has been our aim.’
“We have always refreshed and realigned our business strategy in tune with the changing aspirations of customers to unveil technology-driven innovative products, born out of meticulous research and market insights,” said Sanjay Kalra CEO, Bath Products and Tiles, Brilloca Ltd. Unperturbed by the negative and biased reports by ICICI Securities, Brilloca Ltd. continues with their innovative work and looks forward to a better future for the industry post lockdown.
“It’s true that the lockdown has affected our industry, which has shown losses this quarter. But we are not alone. Many industries have suffered. Brilloca Ltd. is committed to consumer satisfaction at all costs and will remain so in the future,” added Sanjay Kalra, CEO, Bath Products and Tiles, Brilloca Ltd.