The Khadi Village and Industries Commission (KVIC), an autonomous body under the ministry of Ministry of Micro, Small and Medium Enterprises (MSME), has sent legal notices to four Indian companies for using the word Khadi in their brands or as a trademark in an energetic bid to reclaim the brand for the nation, according to a report published by The Economic Times.
Having focused on promoting Yoga so far, Prime Minister Narendra Modi now wants to push khadi on the international stage.
"The government is aiming at making khadi a global product identity of India, as it did for Yoga. But before, taking the major step, it plans to put its house in order. A global identity of Khadi would also allow many rural artisans to earn better," a person familiar with the whole matter told ET.
Any registered khadi institution, company or organisation is allowed to use the word 'Khadi' for authentication of the product and not as brand of their own, according to a government source. After the legal course is over the government is planning to market Khadi globally and could brand it "Cloth of India," futher said the report.
The government has already approached the United Nations and sought help in promoting Khadi as a product and notices have been issued to BK Khadi, Girdhar Khadi, Madhubani Khadi Udyog and Rakhi Khadi, said the financial daily.
Business Standard had in February reported that KVIC sent a legal notice to Fabindia Overseas Pvt Ltd asking it to immediately stop using the word "Khadi" while selling all its cotton products and remove display banners from its showrooms immediately. KVIC has alleged that Khadi India's brand name was unlawfully used to mislead and confuse the consumers.
A week after the development, Fabindia had started removing the brand name 'Khadi' which it used to promote its cotton products after the legal notice, said a Business Standard report.
KVIC may also be looking to send legal notices to any company or organisation using the brand name outside India. KVIC are in the process of appointing trademark & IPR law firm for its overseas cases said the ET report.
Earlier this month, Business Standard had reported that the Khadi industry saw sales worth Rs 50,000 crore for the first time in India. The sales of village industry produce, or Gramodyog, grew 24 per cent in the last financial year. Also, khadi products achieved sales of Rs 2,005 crore, up 33% from Rs 1,635 crore in 2015-16.
In the last financial year, khadi output grew by 31% to Rs 1,396 crore, while village industries saw a 23% rise to Rs 41,110 crore – thus contributing towards the excellent growth of the sector, said the report.