Tata Motors India's top brand

in Brand

Tata Motors is adding feathers to its cap one by one. Firstly by introducing the cheapest car Tata Nano in India, then launching the first crossover Indian car Tata Aria and much more. With all these achievements Tata Motors has made itself a bigger brand equity by acquiring the top position from Reliance Industries. Tata Motors and JLR together with an evaluation of $ 8.45 billion, has topped India's valuable corporate brands. Tata Motors has conquered Reliance's top position among the 50 most valuable corporate brands in India. Brand Finance, a global brand valuation firm based in London did the evaluation in partnership with The Economic Times. The Tata Motors-JLR had a growth of 172 per cent from $ 3.1 billion in the year 2009, according to the pecking order, it stood at the fifith position. While Reliance, the petrochemicals-retail giant, saw a deterioration of 10 per cent in their brand value from $ 7.8 billion in 2009 to $ 7.4 billion. The relief-from-royalty method was employed by Brand Finance to evaluate the top corporate brands of India. The methodology presumes that a corporate brand is not brand of its own but has to get it licence by a third party. The present net value of the future income or revenue inflow from these licensing is regarded as brand valuation. Brand is an intangible asset and companies giving it a value in the financial terms, is now a popular trend in India. The corporate giants such as Infosys Tata and Infosys have put this in practise. This practice of giving financial value to the brand is solving many purposes like, the CEO, CFO and the board members have started taking keen interest in the affairs which was looked after by the marketing chief. Also, in the corporates, the management takes special interest to how they are handling the brand. The evaluation helps them by giving them an edge over the other players in the market. They exactly know how much they need to keep up the momentum. Unni Krishnan, MD of Brand Finance India said that brand valuation is a necessity for a business more than a camouflage.

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Tata Motors India's top brand

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This article was published on 2010/10/27