The Supreme Court of India, intervening in the high-profile trade dress dispute between battery giants Exide Industries Limited and Amara Raja Energy Mobility Ltd, largely affirmed the protection of Exide’s distinctive red brand identity while providing limited relief for third-party sellers.
A bench comprising Justices B.V. Nagarathna and Ujjal Bhuyan in a May 27 order ruled that while the injunction against manufacturing red-coloured batteries remains in place, products already held by third-party distributors, franchisees, and retailers may be sold to customers. These products, packaged in red cartons, are permitted for sale provided they were manufactured and invoiced before the Calcutta High Court’s Division Bench order dated April 2, 2026. However, the apex court took a strict view of inventory still within the direct control of the appellant, Amara Raja Energy Mobility Ltd, directing the company to destroy 1,44,547 empty cartons that mimic the trade dress of Exide’s products.
The dispute centers on the "Elito" brand of automobile batteries launched by Amara Raja, which Exide alleged utilized a red-coloured appearance and packaging that closely resembled its own long-established brand identity. Exide, a market leader in storage batteries, argued that for generations, consumers have associated the specific red trade dress with its products, representing quality and trust built over decades. The company initiated legal proceedings to safeguard this market identity, contending that the similar appearance of the Elito batteries would lead to consumer confusion and infringe upon its substantial brand equity.
The legal journey began in the Calcutta High Court, where a Single Bench initially ruled in favor of Exide, passing an interim order that restrained Amara Raja from manufacturing or selling batteries in red or using any packaging similar to Exide’s established trade dress. This position was subsequently affirmed by a Division Bench of the High Court on April 2, 2026. Following these judicial setbacks, Amara Raja approached the Supreme Court, submitting an affidavit through its Chief Business Officer, Radhakrishnan Chandrasekar, which clarified that the last date of manufacturing the contested red batteries was March 29, 2026, with the final invoices to distributors issued by March 31, 2026.
In its final directions, the Supreme Court noted that approximately 1,38,477 units valued at Rs. 24.99 crores were lying with distributors, and another 81,000 units worth Rs. 15.60 crores were estimated to be with retailers. Recognizing that these products were sold on a principal-to-principal basis and were no longer in the appellant’s custody, the court allowed their sale to prevent wastage. For the 20,789 units still in Amara Raja’s own possession, the court ordered that they must be marketed in entirely different packaging that is not red and does not resemble Exide’s product. The court emphasized that these orders are limited to the temporary injunction and will not influence the final merits of the pending suit.