Country's most valuable brand
The House of Tatas has retained its position as India’s leading brand in valuation firm Brand Finance’s annual study of the country’s top 100 names.
But the 150-year-old group’s brand value has fallen four per cent to $13.1 billion in 2017 over 2016, according to findings shared exclusively by the UK-based valuation firm with Business Standard. The firm, however, says the drop is not a result of the boardroom battle the diversified conglomerate witnessed in the last few months, which saw erstwhile chairman Cyrus Mistry ousted in October last year.
- There has been intense speculation as to whether brand value has fallen due to Tata’s boardroom drama, David Haigh, CEO, Brand Finance said. In our view this is emphatically not the case. Tata’s brand strength index score in fact improved significantly this year and its rating was upgraded from A+ to AA+.
- The brand value drop seen this year, while not being positive for the group, is lower than the decline of nearly 11 per cent seen between 2015 and 2016.
- In 2015, Tata’s brand value was pegged at $15.3 billion, which fell to $13.7 billion in 2016. But a comparison of Tata’s brand value based on Brand Finance figures released over the years shows that the group’s 2017 valuation number is the lowest in five years, which some experts say, points to the impact of the boardroom battle on the brand.
- The drop in Tata brand value this year is due to challenges faced by the salt-to-software group in multiple industries.
- Among the other brands in the top 10 list for 2017 are Airtel at number two (brand value: $7.7 billion), LIC at third position (brand value: $6.8 billion), Infosys at fourth position ($6.2 billion), SBI at fifth position ($5.5 billion), Reliance at sixth position ($4.8 billion), L&T at seventh ($4.6 billion), Indian Oil at eighth ($4.5 billion), HCL at ninth ($4.4 billion) and Mahindra at tenth position ($3.5 billion). SBI is the other brand, apart from Tata, in the top 10 list to have seen its valuation drop from $5.7 billion to $5.5 billion.