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A definitive guide to India’s 30 most valuable brands
For some time it has been an ambition of mine to see this table created and I’m delighted that our new office in India has succeeded in the herculean task of identifying India’s most valuable brands. Congratulations, and thanks to them for making this happen!
Ask any businessperson about their brand, and they’ll always say it’s important—but within the myriad of daily priorities struggling for attention, just how ‘important’ is ‘important’?
It’s in this context that we are delighted to be presenting the Best Indian Brands 2013.
The reason we’ve been so keen to create a table of the Best Indian Brands is to provide context and recognize Indian brands on the global stage, and to illustrate our deep respect for the scale and diversity of India’s business 'powerhouses’. But the nagging question is: are the brands themselves making the fullest contribution to their owners?
So while the Indian economy is clearly blessed with great businesses, do Indian brands fulfill their potential on the global stage? Do Indian brands lead their businesses, or do they lag behind the organizations that own them? Are brands in India treated as a cost, or invested in as an appreciated and appreciating asset?
The ultimate test for any brand is the value it achieves. Interbrand’s brand valuation methodology determines the contribution that the brand makes to the business’s results, and as such this process should create the climate within which it is managed. We have seen time and again that understanding how the brand creates its value leads to good brand management, and that leads to better business results.
The process for valuing a brand is explained in more detail in this report, but in principle there are three pieces of analysis.
First, a financial forecast considers the economic profit of the brand (i.e. the after-tax profit of the brand, minus a charge for the capital employed). This is built across a five-year forecast using publically available data. We then undertake an analysis to consider the role of the brand, i.e. the portion of the decision to purchase that is attributable to the brand, relative to other factors. Finally, we analyze the strength of the brand relative to its competitors. Brand strength measures the ability of the brand to create loyalty and, therefore, to keep generating demand and profit into the future. These pieces of analysis are brought together to arrive at the brand’s economic value.
This figure will always deliver an impact inside the business because the brand’s true worth is now an unequivocal fact, not a notional belief held by some. But, the true value of the exercise is borne out of the knowledge of how the business can grow its brand value still further. That’s how an instinctive asset becomes a valued asset, and that’s how a brand’s agenda can be created to build value for the brand and the organization.
Is the brand an innate, but informal source of residual pride, or a structured business tool that is actively managed as a source of inspiration, purpose, and value to help the business truly fulfill its potential? It’s that knowledge that helps any businessperson know the level of importance they are really attaching to their brand.
There is a transformation underway in India’s economy, and building and reinforcing great brands is at the heart of this transformation.
Global CEO, Interbrand