The brand “Tata” has become India’s most valuable brand for the second straight year in 2019, according to the Brand Finance India 100 2019 report.
Tata’s brand value rose 37% to $19.6 billion as compared to $14.2 billion in 2018, surpassing the combined value of the second and third most valued brands in India. The second most valued brand this year was the government-owned Life Insurance Corporation of India (LIC) at $7.3 billion and a close third was Infosys at $6.5 billion.
“Being recognised as India’s most valuable and fastest growing brand is a matter of pride for us,” said Harish Bhat, brand custodian at Tata Sons.
“This is testament to the Tata brand’s strong inherent value, reflecting the trust consumers and stakeholders have placed in us. As we move ahead, our people-first approach, industry leading technologies, expertise and strategic investments will further strengthen our brand,” he added.
The annual report on Indian brands was published by a London-based independent branded business valuation and strategy consultant, Brand Finance. The firm calculates the value of brands in its league tables using the ‘royalty relief approach’, which estimates likely future sales that are attributable to a brand based on the royalty rate that would be charged for its use.
The royalty rate is calculated by the firm and then used to arrive at a ‘brand value’ that is equivalent to the net economic benefit that a licensor would derive by licensing the brand in the open market.
“Tata Group is to be commended for its ability to scale new heights, as it is not only India’s most valuable brand, but has also recorded faster growth than any other brand in the top 25, with an impressive 37% increase,” said David Haigh, chief executive officer of Brand Finance.
“The group’s brand presence across autos, IT services, steel and chemicals continues to go from strength to strength and remains a force to be reckoned with,” he added.
Every year, Brand Finance values 5,000 of the world’s biggest brands. The 100 most valuable Indian brands are included in the ‘Brand Finance India 100 2019’ ranking.
The report also ranks brands based on their strength, which is understood as the efficacy of a brand’s performance on intangible measures relative to its competitors. This year, Mukesh Ambani-owned Reliance Jio emerged as the “strongest” Indian brand, followed by HDFC Bank and Indian Oil Corporation Ltd.