‘Tata remains most valuable brand’
The Tata brand remained India’s most valuable brand this year as per the latest findings by Brand Finance, a U.K.-based independent brand valuation and strategy consultancy.
After years of below 5% growth in brand value, the Tata group surged ahead with 9% growth in brand value, estimated at $14.2 billion. At this valuation, Tata’s brand value is even higher than Airtel’s ($6.7 billion) and Infosys’s ($6 billion), which are No. 2 and No. 3, respectively.
Last year too, the Tata brand was ahead of the rest at $13.1 billion.
“The $1 billion increase is the result of much tactical streamlining, refocusing and re-engineering of Tata’s key businesses — TCS, Tata Motors, Tata Steel and Tata Chemicals,” Brand Finance said in a statement.
‘Tata’s tactical changes’
David Haigh, Chief Executive Officer, Brand Finance, said: “This year’s success can truly be attributed to a productive first year in office for the new chairman. Under the pragmatic leadership of chairman... Natarajan Chandrasekaran, Tata group is pursuing a consolidated long-term strategy as it ushers in a new era. Chandrasekaran has reviewed the group’s most senior positions, introduced an experienced team of former bankers tasked with overseeing the group finances and made tactical leadership changes across the financial services and hotel brands,” he said.
LIC, ranked fourth in brand value at $6 billion, has seen a value erosion of 13%. HCL, whose brand value has been estimated at $4.6 billion, has seen a 2% appreciation.
The others among the top 10 include SBI with brand valuation of $4.4 billion, down 19% and Indian Oil at $4.2 billion, down 9%. HDFC Bank rose two rungs with an appreciation of 19% to $4.1 billion. Reliance and ITC are valued at $4 billion each. While Reliance witnessed a value erosion of 17%, ITC is down 4%.
“HDFC Bank is clearly proving its resilience and growth in the face of banking scrutiny and headwinds sweeping the sector,” Brand Finance said. “HDFC Bank is India’s strongest brand this year,” the consultancy said.
In Brand Finance India 100 list this year, Kotak Mahindra Bank has been found as India’s fastest-growing brand. Its brand value grew 74% to $1 billion. On the other hand, public sector banks have taken a big hit. IDBI Bank and PNB have taken a hit of 30% and 16% respectively in brand valuation.
In telecom, the entry of Jio has dented the brand valuation of Airtel by 19%, Idea Cellular by 15% and BSNL by 23%. Among other brands, Bajaj has gained significantly by 30%, increasing its ranking to 19 with a brand value of $2.4 billion. Bharat Petroleum gained 21% to $2.4 billion. Yes Bank (36th) and TVS (53rd rank) have also seen their brand value rise 21% and 19% respectively. Royal Enfield has been a steady performer.