Honasa Clarifies: No UAE assets amid legal dispute with former distributor

Honasa Clarifies: Honasa Consumer Limited, the parent company of Mamaearth, clarified on Saturday that it does not hold any assets in the United Arab Emirates (UAE). This statement came in the wake of an ongoing legal dispute with RSM General Trading LLC, a former distributor of Mamaearth products in the Middle East and North Africa (MENA) region.

The clarification followed a regulatory filing where Honasa had disclosed that a Dubai court had upheld an earlier decision to attach the company’s UAE assets. However, Honasa explained that the precautionary attachment order would not impact its assets, as the company has none in the UAE.

In a filing on Saturday, Honasa said, “RSM sought a precautionary attachment on the company’s assets, but there are no assets in the UAE to be attached. Honasa Consumer Limited has no assets in the UAE, and its subsidiary, Honasa Consumer General Trading LLC, has been excluded from the order.”

Additionally, the Dubai court dismissed RSM General Trading’s plea to cancel the trading licence of Honasa Consumer General Trading LLC, citing that the entity is financially and legally separate from Honasa Consumer Limited.

The Indian beauty and personal care company also revealed that it had filed a Section 9 petition before the Delhi High Court, seeking an interim injunction. The court responded by ordering RSM to cease execution proceedings in the UAE and deposit Rs 57 crore in its registry. This amount will be released to Honasa following the successful completion of legal proceedings in Dubai. Since RSM has not complied, Honasa plans to file a contempt petition in Delhi.

Honasa, which owns popular brands such as Mamaearth, The Derma Co., and Aqualogica, reported a strong financial performance in Q1 FY25, with net profits rising 63% year-on-year to Rs 40.26 crore, and operating revenues growing 19% to Rs 554 crore during the same period.

(With PTI Inputs)