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The brand value of the Tata Group has risen by $3 billion in the past one year, primarily led by its international diversification strategy and the flagship firm Tata Consultancy Services Ltd (TCS). Photo: Mint
The brand value of the Tata Group has risen by $3 billion in the past one year, primarily led by its international diversification strategy and the flagship firm Tata Consultancy Services Ltd (TCS). Photo: Mint

Tata Group is India’s most valuable brand: study

The group's brand value stands at $21 billion, according to a study by Brand Finance India

New Delhi: The Tata Group has retained its place as the country’s most valuable brand at $21 billion (around 1.29 trillion), while the total worth of top-100 Indian brands now stands at $92.6 billion, says a new study.

State-run insurance behemoth Life Insurance Corp. (LIC) of India is ranked second with a brand value of $4.1 billion, followed by public-sector bank State Bank of India (SBI) ($4 billion), Bharti Airtel Ltd ($3.8 billion) and Reliance ($3.5 billion).

The brand value of Tata Group has risen by $3 billion in the past one year, primarily led by its international diversification strategy and the flagship firm Tata Consultancy Services Ltd (TCS), as per consulting firm Brand Finance India’s annual study.

“Despite the fact that some divisions within the group have been underperforming, the brand should benefit from the recently outlined plans to invest $35 billion over the next three years and should go some way towards meeting the goal of the Tata chairman, Cyrus Mistry, to be amongst the 25 most admired brands globally," it said.

Brand value has increased among the top 50 by 10% compared to 2013 with brands such as Tata, Godrej, HCL, and L&T leading the way, said the Brand Finance India 100 list that was released on Thursday.

Banking firms fared the worst collectively with the majority of brands losing value or remaining stagnant due to generally poor governance and weak credit controls especially at the government-owned institutions, Brand Finance said.

SBI has seen its value drop by $1.9 billion as poorer revenue forecasts and bad-loans dampened earnings, it said.

HCL Technologies Ltd has seen an increase in brand value of 51% by $649 million as its successful strategy has seen the brand win 50 transformational engagements with contract values of $5 billion in the past year distributed across all service lines and geographies.

“Indian brands have benefited from the rapid economic growth seen over the past ten years," said Brand Finance’s Savio D’Souza.

“Indian brands must take advantage of the improving business sentiment and invest in brand related activities like customer engagement, sponsorships, employee satisfaction and brand tracking to drive the next phase of growth in order for more Indian companies to join the global club of internationally recognized brands," he added.

The average brand value to enterprise value (BV/EV) for India’s top 100 brands is 12%. However, some of the largest public sector undertakings have an average ratio of 3%.

The BV/EV ratio shows the proportion of a company’s value accounted for by the brand.

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