The Hindu Business Line : HLL seeks States' help to tackle counterfeiting

HINDUSTAN Lever Ltd, impacted by the counterfeiting of its brands, has sought the intervention of State Governments in checking production of bogus goods.

The Rs 10,138-crore fast-moving consumer goods (FMCG) major, which has incurred a loss of up to Rs 1,500 crore on account of counterfeit production of its brands, has asked State Governments to set up task forces to check the menace.

Mr M.K. Sharma, Vice-Chairman, HLL, said that the West Bengal Government has set up an Economic Offences Wing, which has taken cognisance of counterfeiting crimes.

The loss on account of counterfeited products is around Rs 2,500 crore for the FMCG industry, he said.

Delhi, he said, is emerging as the counterfeiting capital of the country. The Capital accounts for 50 per cent of the total FMCG and pharmaceutical counterfeited goods sold in the country.

What started as an economic necessity and a desire to sell products several decades ago has now deteriorated into an organised crime, Mr Sharma said.

The Government also loses in terms of taxes not paid, he said. The Rs 2,500-crore loss to the FMCG industry amounts to a loss of Rs 900 crore to the Government.

"In the 1970s we could deal with the situation civilly but not today. In order to conduct raids we need a police force but usually the police department is unable to spare staff," Mr Sharma said.

"The authorities recognise theft of physical assets but not that of intellectual property," Mr Sharma said.

HLL has been conducting raids for several years. Currently, it has allocated a budget of Rs 10 crore per annum for these activities. The company also has a budget for engaging detective agencies to carry out investigations.

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