INDIA’S TOP CORPORATE BRANDS * THE ECONOMIC TIMES MUMBAI MONDAY 25 OCTOBER 2010

4
1 2 3 4 5 6 7 8 9 10
TATA MOTORS RIL SBI TCS INDIANOIL BHARTI AIRTEL BPCL TATA STEEL WIPRO HPCL
Rank ‘09: 5 Rank ‘09: 1 Rank ‘09: 2 Rank ‘09: 4 Rank ‘09: 3 Rank ‘09: 7 Rank ‘09: 6 Rank ‘09: 12 Rank ‘09: 8 Rank ‘09: 11
Value ’10: 8,454 Value ’10: 7,040 Value ’10: 6,301 Value ’10: 4,367 Value ’10: 4,304 Value ’10: 3,159 Value ’10: 2,945 Value ’10: 2,943 Value ’10: 2,492 Value ’10: 2,235
Value ‘09: 3,100 Value ‘09: 7,844 Value ‘09: 5,480 Value ‘09: 4,177 Value ‘09: 4,807 Value ‘09: 2,512 Value ‘09: 2,620 Value ‘09: 2,264 Value ‘09: 2,370 Value ‘09: 2,274
Riding on the Nano, the The petrochem-to-retail The state-run bank, Out of the woods led Dropped two rungs India’s largest private Surging consolidated With increasing The company’s diversifi- With earnings per
world’s cheapest car, and major, surprisingly although moved a rank by global meltdown last down, this state-run oil telco is fast expanding profits, that grew 158% demand for steel and no cation strategy or derisk- shares more than dou-
smooth integration of its pushed to the second down, still retains its year, largest technology company increased its global reach to drive last fiscal, an the back of Greenfield projects in ing model with low bled during last year, the
acquired Jaguar Land position, suffered a big charm as the biggest company in the country brand value on the back value. After Warid Tele- higher crude throughput sight, Tata Steel holds dependence on a single oil major from public
Rover, Tata Motor has brand value erosion, but banking brand in the held its own at No. 4 of subsequent oil price com, it has snapped up and sales helped the oil tremendous potential for market or client helped it sector unit moved a slot
demonstrated a huge its ability to recoup country and has added and managed to limp hikes and ability to cre- Zain’s African business major make incremental growth on account of its tied over recession and a up, to number 10 for the
potential to create value remains unchallenged huge value this year ahead in brand value ate value for investors and Telecom Seychelles growth in brand value global footprints robust last year first time

BRAND SLAMS
THE NEXT 40 IN THE BIG LEAGUE
Rank Value
2010 2009 Brand 2010 2009
11 10 ICICI Bank 2,164 2,277
12 9 ITC LTD 2,137 2,348
13 13 LARSEN & TOUBRO 2,007 1,823
14 15 UNITED BREWERIES 1,863 1,421
India’s 50 most 15 14 INFOSYS TECHNOLOGIES 1,800 1,719
valuable corporate 16 16 RELIANCE COMMUNICATIONS 1,493 1,436
17 18 MAHINDRA & MAHINDRA 1,395 1,335
brands increased 18 17 MARUTI SUZUKI INDIA 1,193 1,411

their combined 19 19 BAJAJ AUTO 972 1,010

20 21 HDFC BANK 951 784
brand value by 21 20 HERO HONDA MOTORS 926 859

$9 billion in 2010 22
23
23
26
TATA TEA
HDFC
792
769
709
623
with the biggest, 24 24 HCL TECHNOLOGIES 723 703

Tata Motors, alone 25

26
27
31
PUNJAB NATIONAL BANK
IDEA CELLULAR
713
660
564
513
accounting for 27 25 DABUR INDIA 659 634
28 33 TATA POWER 619 475
almost two-thirds 29 29 TATA COMMUNICATIONS 611 539
of it. Other business 30 36 BANK OF INDIA 602 442
31 22 SUZLON ENERGY 602 745
groups too are now 32 34 BANK OF BARODA 601 466
looking for ways to

O
33 41 JET AIRWAYS INDIA 541 331
34 * CROMPTON GREAVES 541 0
take good care of 35 * CANARA BANK 525 0

ARINDAM
their brands 36 35 JSW STEEL 520 447
37 30 GRASIM INDUSTRIES 512 531

TOP 10 GAINERS N THE FACE OF IT,

India Inc’s leading
GMR have drafted guidelines on how scions
starting new business ventures can and cannot
in the long run. This is true not just to the IT sec-
tor but for companies across industries. “There is
38
39
*
32
ADITYA BIRLA NUVO
INDIAN HOTELS
506
496
247
480
brands seem to have use the brands. They are seeing themselves as a new value creation recipe that’s brewing in
done quite well in mere custodians of brands — an asset that needs corporate India,” says Unni Krishnan, manag- 40 40 PANTALOON RETAIL INDIA 445 353
2009-10 — a year to be preserved and nurtured for perpetuity. ing director of Brand Finance India. 41 37 VIDEOCON INDUSTRIES 445 416
TATA when the world econo- According to Amit Burman, non-executive And last, but not the least, brand manage-
MOTORS 42 38 AXIS BANK 428 404
my was on its knees, vice chairman of Dabur India, the Burman ment is no longer the exclusive preserve of the
gasping for breath in the family has decided that no member who plans marketing head. CEOs, CFOs, and the entire 43 47 RELIANCE INFRASTRUCTURE 393 264

173% aftermath of a recession. In such a year, the com-

bined brand value of the top 50 companies rose
15% to $76 billion, according an annual survey
of India’s Most Valuable Brands by BrandFi-
to float a new venture in his individual capaci-
ty would use the brand Dabur. “It is only when
all the family members collectively set up a
new venture would they be allowed to use the
top management and the board of directors
are beginning to apply themselves to the task.
You will read a series of stories on these very is-
sues on this page in the next four days.
44
45
39
*
KOTAK MAHINDRA BANK
S. KUMARS NATIONWIDE
391
371
359
0
46 * PUNJ LLOYD 364 0
Y-O-Y RISE IN BRAND VALUE nance, in an exclusive partnership with The Eco- brand,” he says. This is the backdrop against which the fifth
nomic Times. The figure had remained stagnant A few are exploring brand holding compa- edition of the India’s Most Valuable Brands Sur- 47 * ARVIND 363 0
JET AIRWAYS INDIA 64% at $67 billion last year over $66.8 billion in 2008. nies pretty much along the lines of holding vey has been done. “Brand valuation has final- 48 * UNION BANK OF INDIA 340 0
RELIANCE INFRASTRUCTURE 49% The top 50 brands may have gained $9 billion companies that control the equity a family has ly come of age. Indian brand owners will be able
in value, but in reality only five companies ac- invested in group companies. “We have divid- to develop, buy, sell, and leverage these vital as- 49 45 ESSAR OIL 335 318
BANK OF INDIA 36%
counted for as much as $8 billion of that increase. ed group companies according to product seg- sets in the knowledge that they can be reliably 50 * IDBI BANK 299 0
UNITED BREWERIES 31% (see chart – Top Gainers). More importantly, just monetised,” says David Haigh the London-
* New Entrants
TATA POWER CO 30% one company, Tata Motors, registered a $5.3 bil- based global CEO of Brand Finance. “It’s literal-
lion growth in the value of its brand – single- ly a new dawn for Indian brand owners as they
TATA STEEL 30% handedly accounting for about two-thirds of the realize the vital importance of these invisible as- DROPPED
BANK OF BARODA 29% value growth of the top 50 companies. sets to make the next leap in value creation.”
- 28 RANBAXY - 552
This, at once, brings two questions into play. Brand Finance uses the ‘Relief from Royal-
IDEA CELLULAR 29% First, how did Tata Motors manage to unlock ty’ — a simple approach that assumes that a - 42 DLF - 330
PUNJAB NATIONAL BANK 26% so much value in an intangible asset called company does not own its own brand and cal- - 43 JAINPRAKASH ASSOCIATES - 326
brand? And second, where did other compa- culates how much it would need to pay to li-
nies miss out and how are they now planning cense it from a third party. The present value of - 44 DR. REDDY LABS - 320
TOP 10 LOSERS to grow the value of their brands?
The answer to the first largely lies in its abil-
ments and each company uses brand Godrej
for that category alone,” says Adi Godrej. For
that stream of (hypothetical) royalty pay-
ments represents the value of the brand.
- 46 GMR - 238
ity to unlock some value of Jaguar and Land instance, Godrej Consumer Products owns the Brand Finance started its annual report on - 48 TATA CHEMICALS - 262
Rover brands. “JLR was part of a larger con- brand for only FMCG, while Godrej & Boyce the world’s most valuable brands in 2006 and - 49 ASHOK LEYLAND - 259
glomerate (Ford). So the market couldn’t val- owns Godrej brand only for the consumer has valued leading global brands Wal Mart,
SUZLON ue them (at the time of the deal),” says Carl- durables. So, if tomorrow, Godrej Consumer Coca-Cola, IBM, Microsoft and Google to - 50 BHARAT FORGE - 251
ENERGY LTD Peter Forster, CEO and MD Tata Motors. enters a new category other than FMCG, it will name few among the list of 500.
The second question is engaging India Inc like not use the brand Godrej. The financial services sector finds a dispropor- Value In Million Dollars

-19%
never before. New global compulsions are forc- Sectors like IT that have so far competed on tionately high representation in the 2010 edition
ing large business groups, like the Tatas for exam- the India’s `low-cost advantage’ are now figur- of Most Valuable Brands with 13 companies —
ple, to take a complete re-look at the way brands
have been managed. The group is now looking to
ing out that a stronger brand equity can help
find better traction with customers and help
three more than last year — figuring in the list.
Among Top 50, 16 brands from the last year
GUEST COLUMN
Y-O-Y FALL IN BRAND VALUE craft an all-new architecture for global brand earn better profit margins. moved up the ladder, 19 slipped to varying de-
management. “The Tata name is a valuable Implicit in this is the assumption that IT com- grees and seven retained their last year’s position.
SUZLON ENERGY
MARUTI SUZUKI INDIA
INDIAN OIL CORPORATION
-19%
-15%
-10%
brand property and is now like a landscape that
has to be nurtured to come up beautifully,” says R
Gopalakrishnan, executive director of Tata Sons.
panies will have to put the creation of long-term
brand value ahead of short-term compulsions.
Short-term profit margins will need to be sacri-
Amongst upwardly mobiles, Jet Airways rose the
highest, eight rungs, to No 33. Suzlon suffered
the biggest drop, slipping nine rungs to No 31.
Paradigm shift in
RELIANCE INDUSTRIES
ITC
-10%
-9%
Business families such as Godrej, Dabur and

Upcoming Special Features

ficed with an eye on making the brand stronger Team ET
wealth creation
ICICI Bank -5% IN THE FIVE YEARS SINCE WE
BAJAJ AUTO -4% TUESDAY: How Tata Motors WEDNESDAY: The Family THURSDAY: FRIDAY: Indian first started publishing the
unlocked the real value of the Brand —how business Managing Brands – IT’s Brand annual analysis of India’s Most
GRASIM INDUSTRIES -4% Valuable Brands, the wealth
HINDUSTAN PETROLEUM CORP -2% Jaguar and LandRover brands houses are managing it The Tata Way Challenge creation algorithm of India’s
leading companies has
undergone a tectonic shift. It is
METHODOLOGY increasingly obvious that tradi-
tional manufacturing and trad-

How We ing-based, “We make, you

Did It?
ONLY FIRMS LISTED ON
BSE were considered for
the study. Also, those with
a number of stand-alone
brands were eliminated.
Hence, no Amul or HUL.
Five years of historic rev-
enues and current market
value of the firms were ob-
tained using Bloomberg
and other publicly-avail-
able sources.
Evaluation of top 500
firms (by market cap) was
used to arrive at the Top 50.
Only public data — bro-
ker reports, annual reports
and market research —
was used for the study.
The valuation was done
using the 'Relief from Roy-
alty' approach, which as-
sumes that a firm does not
own its own brand and cal-
culates how much it would
need to pay to license it
from a third party. The
present value of the (hypo-
thetical) royalty represents
the brand’s value.
take” business philosophy is
getting wiped out.
There is considerable excite-
ment about India’s GDP
estimates, plentiful inflow of
global capital and strength of
equity markets. Yet some
introspection is needed by the
firms about the sustainability
drivers of profitable growth,
which they have enjoyed with
relative ease till date.
Twenty years ago, things like
customers, brand, stakeholder
relationships or intellectual prop-
erty did not matter. But now, hy-
per competitive markets, rapid
innovation and choosy
customers are becoming the
norm rather than an exception.
This puts customers at the centre
of the business and makes brands
the pivot of a value exchange
interface between customers and
the enterprise.
In the next decade,
sustainable businesses are those
that will learn to walk the talk
on customer–centricity and
construct a brand and intangible
asset-heavy business design. A
brand-led business design and
investment thesis is not a fancy
option, but a necessity to deliver
M UNNI KRISHNAN
MD, BRAND FINANCE INDIA
on the business’s full potential
and for long-term viability.
Brand Finance’s global and
Indian experience shows that a
large majority of businesses are
overbalanced towards short-
term fire-fighting priorities
because they have little or no
visibility into directing manage-
ment attention and investments
into future value-producing
activities driven by brands and
intangible assets.
The goal of this annual index
is not only to provide a snapshot
of India’s biggest and most
powerful brands, but also ignite
an informed debate about what
really matters for Indian firms —
adopting brand value as a surro-
gate for business’ value creation
capability in the long run.
It is critical to bridge the gap
between ‘Delivering Today’
(short-term priorities) and ‘Cre-
ating Tomorrow’ (long-run
goals) of any business by provid-
ing a common platform and set
of metrics that can be used by
the senior management as well
as by analysts and investors.