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Tata Brand Value Breaks US$20 Billion Mark

Tata Group has retained its title of India’s most valuable brand by a considerable lead, recording a modest 2% brand value development to US$20.0 billion – the first time any Indian model has surpassed this spectacular brand value marker. Tata Group is the only Indian brand to feature within the top 100 of the Brand Finance Global 500 2020 – the ranking of the world’s 500 most valuable brands.

Tata Brand Value Breaks US$20 Billion Mark

  • Tata Group retains title of India’s most valuable brand, breaking US$20 billion brand worth mark for the first time
  • Reliance’s strategic industry shift pays off, brand worth up 25%
  • 14 banking brands develop on average 25% regardless of NBFC pressure and Central Bank’s tightened financial policy
  • Luxury accommodations large Taj is the nation’s strongest brand, Brand Strength Index (BSI) score 90.5 out of 100
  • Top 100 most useful Indian manufacturers from Brand Finance India 100 2020 ranking stand to lose as much as US$25 billion or 15% of brand worth following devasting COVID-19 pandemic

As the COVID-19 pandemic wreaks havoc on the worldwide and nationwide financial system, India’s high 100 most valuable brands may lose as much as 15% of brand name worth cumulatively, a possible drop of nearly US$25 billion in comparison with the original valuation date of 1st January 2020, based on the latest Brand Finance India 100 2020 report.

Looking beyond India, the worth of the 500 most valuable manufacturers on this planet, ranked in the Brand Finance Global 500 2020 league table, may fall by an estimated US$1 trillion because of the Coronavirus outbreak.

Brand Finance has assessed the influence of COVID-19 based mostly on the impact of the outbreak on enterprise worth, in comparison with what it was on 1st January 2020. The possible influence on brand value was estimated for every sector. The industries have been categorized into three classes – restricted influence (minimal brand value loss or potential brand value development), moderate affect (as much as 10% brand value loss), and heavy influence (as much as 20% brand value loss) – based mostly on the extent of brand value loss noticed for every sector within the first quarter of 2020.

Tata Group breaks US$20 billion mark

tata-brand-value-breaks-us20-billion-mark

Tata Group has retained its title of India’s most valuable brand by a considerable lead, recording a modest 2% brand value development to US$20.0 billion – the first time any Indian model has surpassed this spectacular brand value marker. Tata Group is the only Indian brand to feature within the top 100 of the Brand Finance Global 500 2020 – the ranking of the world’s 500 most valuable brands.

Operating in additional than 100 countries, throughout six continents and using a staggering 720,000 individuals, Tata Group’s reach is truly global. The Group’s strategic determination to leverage the strength of its flagship working firms is enabling the Group to fund development throughout all arms of its companies, with the ultimate purpose of Tata Motors, Tata Steel, Tata Consultancy Services (TCS), its financial services and retail divisions to account for 10-15% of the Group’s earnings.

Savio D’Souza, Director, Brand Finance, commented:

“The sheer size and diversity of Tata Group could mean that it emerges from the COVID-19 pandemic, relatively speaking, unscathed. Despite citing considerable difficulties in the current climate and warnings of a significant downturn in profits for some of its businesses”

– Tata Steel and Tata Motors.

The Group will hope that the stability and strength of the TCS and Tata Consumer Products Ltd brands will offset any damage to other arms of the Group.

Reliance’s strategic industry shift pays off

Moving up one place within the ranking from 4th to third following an impressive 25% brand value growth to US$7.9 billion in Reliance. Reliance’s strategic determination to shift its focus from the oil & gas sector to the retail, media and telecoms sectors have proved fruitful for the brand. The brand now claims a 34% share of market revenue within the Indian telecoms sector. That being stated, Reliance has not neglected its core energy business, getting into strong strategic partnerships with BP in the UK and Saudi Aramco within the Middle East to help its ambitious development plan.

Banking brands record strong growth

There are 14 banking brands in the ranking, with a cumulative brand value of US$24.9 billion, recording a mean brand value growth of 25%, demonstrating the sector’s defiance against NBFC pressure, and the Central Bank’s tightened fiscal policy.

The State Bank of India (up 8% to US$6.4 billion) and HDFC (up 22% to US$5.9 billion) have retained their positions within the top 10, with the latter climbing one spot to sixth place in the ranking following a healthy 24% brand value growth over the previous year.

Indian banks, like many different banks internationally, have been struggling because of the delicate world financial and political landscape. With the banking sector within the heavily impacted bracket in our COVID-19 analysis, equating to a potential 20% brand value loss, the road forward seems similarly rocky.

Taj is the nation’s strongest

In addition to measuring overall brand value, Brand Finance additionally evaluates the relative strength of brands, based mostly on elements corresponding to marketing investment, familiarity, loyalty, workers satisfaction, and company reputation. Alongside income forecasts, brand strength is a vital driver of brand value. According to those criteria, Taj (brand value US$309 million) is India’s strongest brand with a Brand Strength Index (BSI) score of 90.5 out of 100 and a corresponding elite AAA+ brand strength rating.

The mixture of the successful implementation of the brand’s 5-year plan – which focuses on selling non-core assets, becoming less ownership driven and decreasing dependence on the posh space – and the brand’ strong leadership has thrust the brand back into the Brand Finance India 100 2020 ranking, whereas claiming the title of the nation’s strongest brand.

The luxurious hotel chain prides itself on going above and beyond to make sure world-class customer support and experience reflected in its strong brand equity scores. The model has set its sights on expanding its world footprint wider, with 13 new properties and 2,900 rooms already in the pipeline.

Savio D’Souza, Director, Brand Finance, commented:

“COVID-19 is undoubtedly going to wreak havoc on the hotel’s sector in the coming year – both financially, as hotels are forced to close and bookings are cancelled, and reputationally, as brands that do not manage to avoid association with COVID-19 may suffer lasting reputational damage. Brand Finance’s analysis has shown that hotel brands could face a 20% brand value loss, following the pandemic. Taj will now, more than ever, have to rely on its elite brand strength to support it through this unprecedented time.”

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