Interbrand survey shows brand value still a far cry in India

The first edition of Interbrand's Best Indian Brands has The Tata Group, Reliance Industries and L&T, at the top.

The one big difference between the brands which have made it to the Best Indian Brands list and those on the Interbrand Best Global Brands (BGB) list is that almost half the brands in the Indian list are conglomerate brands with a major presence in core sectors. The sectors include infrastructure, banking and so on. In contrast, new media companies, technology and luxury brands predominate in the global list.

The best global brand last year was Coca-Cola, while Apple and IBM were at the second and third place. "The fact that core sector companies have made it to the Indian list reflects the development of the economy," says Jez Frampton, Global CEO of Interbrand.

Frampton says Indian conglomerates are the most diversified entities in the world and present across industries. "This yet again reflects the developing nature of the economy. They grew on the pillar of trust. Since industry was evolving, offering trust became a business opportunity. They got extended to various sectors as they ensured trust," he adds.

But brand value creation hasn't been taken seriously enough in India, according to Frampton. "The Tata Group stands for trust. However if one were to ask what brand value it stood for, it might be difficult question to answer.  This is because it is into many businesses," says Frampton.   

"The Tata Group has financial muscle, it has a huge global presence and even if it hasn't invested in value creation, it is a formidable brand. However, it could do better if it invested in a strategic brand value creation exercise," says Ashish Mishra , MD, Interbrand India.

Frampton says that Coca-Cola's brand valuation is $78 billion while its revenue is $45 billion. In contrast, the Tata Group, with a revenue of over $100 billion, has a brand valuation of just $10 billion. "Almost 70% of Coca-Cola's business comprises its brands, and that is where the Indian brands need to get to," he says.

Mishra cites a brand valuation exercise Interbrand did for the Godrej Group a couple of years ago. Like most Indian conglomerates, Godrej too is a large diversified entity with over 40 companies. "We identified which of their businesses created more value for them and identified four hero businesses - Consumer Products, Aerospace, Properties and Furniture."

Godrej is at No. 9 on the Best Indian Brands list.

"The first edition of Best Indian Brands is intended to create awareness among Indian companies of the importance of brand value," says Frampton.