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Home , Godrej Consumer Products, HCL Technologies, Tata Steel

’S TOPCORPORATE BRANDS 4 * THE ECONOMIC TIMES MONDAY 25 OCTOBER 2010 1 2 3 4 5 6 7 8 9 10 RIL SBI TCS INDIANOIL BHARTIAIRTEL BPCL TATA 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, 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

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 BRAND SLAMS 13 13 LARSEN & TOUBRO 2,007 1,823 14 15 UNITED BREWERIES 1,863 1,421 India’s 50 most 15 14 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 INDIA 1,193 1,411 their combined 19 19 972 1,010 20 21 HDFC BANK 951 784 brand value by 21 20 HERO HONDA MOTORS 926 859 $9 billion in 2010 22 23 TATA TEA 792 709 23 26 HDFC 769 623 with the biggest, 24 24 HCL TECHNOLOGIES 723 703 Tata Motors, alone 25 27 713 564 26 31 IDEA CELLULAR 660 513 accounting for 27 25 INDIA 659 634 almost two-thirds 28 33 619 475 29 29 611 539 of it. Other business 30 36 602 442 31 22 SUZLON ENERGY 602 745 groups too are now 32 34 601 466 looking for ways to 33 41 JET AIRWAYS INDIA 541 331 34 * CROMPTON GREAVES 541 0 take good care of 35 * 525 0 their brands 36 35 JSW STEEL 520 447 ARINDAM 37 30 512 531 TOP 10 GAINERS N THE FACE OF IT, GMR have drafted guidelines on how scions in the long run. This is true not just to the IT sec- 38 * ADITYA BIRLA NUVO 506 247 India Inc’s leading starting new business ventures can and cannot tor but for companies across industries. “There is 39 32 INDIAN HOTELS 496 480 brands seem to have use the brands. They are seeing themselves as a new value creation recipe that’s brewing in 40 445 done quite well in mere custodians of brands — an asset that needs corporate India,” says Unni Krishnan, manag- 40 PANTALOON RETAIL INDIA 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- 42 38 428 404 MOTORS 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 47 393 264 aftermath of a recession. In such a year, the com- to float a new venture in his individual capaci- top management and the board of directors 44 39 391 359 Obined brand value of the top 50 companies rose ty would use the brand Dabur. “It is only when are beginning to apply themselves to the task. 173% 15% to $76 billion, according an annual survey all the family members collectively set up a You will read a series of stories on these very is- 45 * S. KUMARS NATIONWIDE 371 0 of India’s Most Valuable Brands by BrandFi- new venture would they be allowed to use the sues on this page in the next four days. 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 * 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 49 45 ESSAR OIL 335 318 BANK OF INDIA 36% 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- 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 30% TATA STEEL 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.” - - This, at once, brings two questions into play. Brand Finance uses the ‘Relief from Royal- 28 RANBAXY 552 29% IDEA CELLULAR First, how did Tata Motors manage to unlock ty’ — a simple approach that assumes that a - 42 DLF - 330 26% PUNJAB NATIONAL BANK 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? ments and each company uses brand Godrej that stream of (hypothetical) royalty pay- - 46 GMR - 238 The answer to the first largely lies in its abil- for that category alone,” says . For ments represents the value of the brand. ity to unlock some value of Jaguar and Land instance, owns the Brand Finance started its annual report on - 48 - 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 - 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 - 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 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 — -19% ple, to take a complete re-look at the way brands ing out that a stronger brand equity can help three more than last year — figuring in the list. GUEST COLUMN have been managed. The group is now looking to find better traction with customers and help Among Top 50, 16 brands from the last year 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 -19% brand property and is now like a landscape that panies will have to put the creation of long-term Amongst upwardly mobiles, Jet Airways rose the MARUTI SUZUKI INDIA -15% has to be nurtured to come up beautifully,” says R brand value ahead of short-term compulsions. highest, eight rungs, to No 33. Suzlon suffered Paradigm shift in -10% Gopalakrishnan, executive director of . Short-term profit margins will need to be sacri- the biggest drop, slipping nine rungs to No 31. Business families such as Godrej, Dabur and ficed with an eye on making the brand stronger Team ET -10% ITC -9% wealth creation Upcoming Special Features 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 annual analysis of India’s Most -4% unlocked the real value of the Brand —how business Managing Brands – IT’s Brand GRASIM INDUSTRIES Valuable Brands, the wealth 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- ing-based, “We make, you How We take” business philosophy is M UNNI KRISHNAN getting wiped out. MD, BRAND FINANCE INDIA There is considerable excite- Did It? ment about India’s GDP on the business’s full potential ONLY FIRMS LISTED ON estimates, plentiful inflow of and for long-term viability. BSE were considered for global capital and strength of Brand Finance’s global and the study. Also, those with equity markets. Yet some Indian experience shows that a a number of stand-alone introspection is needed by the large majority of businesses are brands were eliminated. firms about the sustainability overbalanced towards short- Hence, no Amul or HUL. drivers of profitable growth, term fire-fighting priorities Five years of historic rev- which they have enjoyed with because they have little or no enues and current market relative ease till date. visibility into directing manage- value of the firms were ob- Twenty years ago, things like ment attention and investments tained using Bloomberg customers, brand, stakeholder into future value-producing and other publicly-avail- relationships or intellectual prop- activities driven by brands and able sources. erty did not matter. But now, hy- intangible assets. Evaluation of top 500 per competitive markets, rapid The goal of this annual index firms (by market cap) was innovation and choosy is not only to provide a snapshot used to arrive at the Top 50. customers are becoming the of India’s biggest and most Only public data — bro- norm rather than an exception. powerful brands, but also ignite ker reports, annual reports This puts customers at the centre an informed debate about what and market research — of the business and makes brands really matters for Indian firms — was used for the study. the pivot of a value exchange adopting brand value as a surro- The valuation was done interface between customers and gate for business’ value creation using the 'Relief from Roy- the enterprise. capability in the long run. alty' approach, which as- In the next decade, It is critical to bridge the gap sumes that a firm does not sustainable businesses are those between ‘Delivering Today’ own its own brand and cal- that will learn to walk the talk (short-term priorities) and ‘Cre- culates how much it would on customer–centricity and ating Tomorrow’ (long-run need to pay to license it construct a brand and intangible goals) of any business by provid- from a third party. The asset-heavy business design. A ing a common platform and set present value of the (hypo- brand-led business design and of metrics that can be used by thetical) royalty represents investment thesis is not a fancy the senior management as well the brand’s value. option, but a necessity to deliver as by analysts and investors.