HC ends Maggi trademark case as utensil maker agrees to drop 'Maggisun'

The Delhi High Court has closed a trademark infringement case filed by Nestle S.A., the parent company behind “Maggi”, after it reached a settlement with Shankeshwar Utensils & Appliances Private Limited, which was manufacturing utensils under the mark “Maggisun", Live Law reported.

Justice Tejas Karia approved the settlement, noting that the defendant has agreed not to manufacture or sell pressure cookers or any other products under the trademark “Maggisun” or any mark similar to Nestle’s “Maggi".

The case

Nestle, through its official corporate name Societe Des Produits Nestle SA, filed the suit in 2018. The company, which acquired the Maggi brand in 1947, argued that the defendant’s use of the mark “Maggisun” infringed on its trademark rights.

Under the settlement, Shankeshwar Utensils acknowledged Nestle as the owner of the MAGGI trademark and accepted the validity of all its trademark registrations.

The defendant also agreed not to advertise Maggisun, Maggi or any similar trademark on any media, including print, electronic, social media or ecommerce platforms. Shankeshwar Utensils also committed to destroying all existing products bearing the mark Maggisun or any similar mark and to cancel its trademark registration for “Maggisun", the news report said.

Nestle's counsel confirmed that remaining claims in the suit would not be pursued if the court accepted the settlement.

“The suit is decreed in terms of the settlement arrived at between the parties as recorded above. Let the decree sheet be drawn up accordingly. The parties are directed to be bound by the terms of the settlement," the court said.

Maggi’s strong market presence in India

India has become the largest market for Nestle’s Maggi noodles, with six billion servings sold in the financial year 2023-24 (FY24). The company also referred to India as one of its fastest-growing markets globally, reporting a high double-digit growth rate.

Nestle India highlighted strong growth in its prepared dishes and cooking aids segment, attributing it to a balanced product mix, pricing and volume growth of Maggi noodles and Maggi Masala-ae-Magic.

Maggi’s controversial past in India

Maggi noodles have faced repeated debates over potential health risks in India. In June 2015, the Food Safety and Standards Authority of India (FSSAI) banned Maggi for five months after tests found lead levels exceeding permissible limits. The noodles were reported to contain 17.2 parts per million (ppm) of lead, far above the authorised limit of 2.5 ppm.

The ban wiped out Maggi’s 80 per cent share of the Indian noodles market almost overnight. Even after nearly a decade, Maggi continues to face strong competition from new players.

Over the past eight years, Nestle India has launched over 140 products and has plans to invest ₹7,500 crore between 2020 and 2025 to strengthen its operations in the country.