Mumbai, Aug. 14 -- In a departure from past practice, the Aditya Birla Group has introduced a royalty fee for its operating companies using its brand name, the top bosses of group companies Hindalco Industries Ltd and Grasim Industries Ltd said in their latest investor calls.

The move brings the group's practice in line with that of some peers, including Tata Group, Vedanta and JSW Group.

Mint's calculations show the fee could generate more than Rs.1,000 crore a year for the group's privately owned promoter entity Birla Group Holdings Private Limited (BGH).

The promoter entity will receive a fee equivalent to 0.25% of the standalone revenue of all listed and unlisted group companies using the brand, capped at a maximum of Rs.225 crore....