Interbrand releases Best Indian Brands 2016

Interbrand, the world’s largest and most influential brand consultancy, has released its 2016 Best Indian Brands Report, the definitive growth guide to the Top 40 brands in India. The Best Indian Brands Report complements Interbrand’s Best Global Brands Report, the most prestigious brand ranking table globally, which is based on a unique combination of attributes that contribute to a brand’s cumulative value: the financial performance of the branded products and services, the role the brand plays in influencing customer choice, and the strength the brand has to command a premium price or secure earnings for the company.

90% of the brands continue to grow consistently. Tata retains the #1 position for the fourth consecutive year. Maruti Suzuki, HDFC Bank and Mahindra are this year’s top growth risers. The diversified sector continues to dominate generating 37% of the aggregate brand value of the league table.

The Top Five 

This year’s league table sees the top five slots occupied by Tata, Airtel, Reliance Industries, HDFC Bank and LIC. HDFC has risen from Rank 6 in 2014, to rank 4 (replacing State Bank of India in the top 5) with a solid 15% rise in brand value. Reliance Industries and Airtel have swapped the number 2 and 3 spots vis-à-vis last year with a 3% and 8% growth in revenue respectively. 

The Top Growth Risers

The top riser this year is Maruti Suzuki with a 16% increase in brand value, driven by a foray into newer segments and an effort to move up the value chain. The brand value of HDFC Bank also grew by a steady 15%, primarily supported by its focus on new solutions and digital pervasiveness. The other key risers were Mahindra (14%), Idea (12%), Infosys (12%) and Dabur (12%).

New Entrants

This year, the league table has been expanded to track a broader set of brands and present the top forty, up from the top thirty released last year. The new entrants in this year’s report are: Britannia, IndusInd Bank, Kingfisher, Yes Bank, NTPC, Union Bank, Canara Bank, Ashok Leyland, JSW, Jindal Steel and Power.     

Key sectors

Diversified Businesses and Financial Services account for the two most significant sectors in this year’s league table. While Diversified Businesses make up 37% of the total brand value of this year’s Best Indian Brands table, Financial Services forms 27% of the value. Telecom, Auto and Tech are the other significant contributors to the value, accounting for 9%, 7.5% and 7% respectively. 

Celebrating the launch of the report, Gonzalo Brujó, CEO, EMEA and LATAM, Interbrand, said: “Indian brands must accelerate their growth to compete globally. These businesses grew from industries to conglomerates. The conglomerates are now trying to grow globally by transcending domains, reinventing around purpose and waking up to strategic Corporate Citizenship. This shift is marked by industry-driven brands transforming to fast moving consumer-centric brands, customer-centric innovations and digital pervasiveness. While diversified and finance sectors have historically dominated the Indian market, technology, telecom and auto are the emerging growth sectors. More importantly, healthcare, e-commerce, fashion, luxury and sports are the next big opportunities.”

Speaking of the transformation that India’s best brands need to make to be counted amongst the global best, Ashish Mishra, Managing Director of Interbrand India, said “Indian businesses and brands will need to be the global frontrunners in designing lives and creating better experiences. They will need to reinterpret themselves in the context of a global role and purpose by creating inspiring brand-led cultures on the inside, which in turn anchor the multiple micro-experiences for the customer on the outside. This is really the way Indian brands can lead and grow their businesses globally.”

How they got to where they are

How did the Top 10 Best Indian Brands in the Interbrand report get to where they are? The answer lies in what they have done over time, but especially over the last few years.

1.Tata GroupBrand Value: Rs 742.18 billion

Tata Group continues its seemingly unassailable run as India’s most valuable brand. Brand value is up 11%, and companies across the group spent the last year making bold innovative strides. When the spread of the Zika virus threatened to cast an unpleasant shadow over the launch of its car named Zica, Tata Motors quickly ran a contest encouraging people to vote for the name of the new car, with Tiago emerging the winner. Tata Motors also scored a coup of sorts with football legend Lionel Messi as brand ambassador who — recent controversies notwithstanding — has a remarkably strong connection with the youthful demographic in India. Its passenger vehicle division launched the Zest sedan and Bolt hatchback. Key appointments this year at Tata Motors included CEO and managing director Guenter Butschek, with previous experience at Airbus and Daimler. Tata Consultancy Services (TCS) crossed the trillion rupee mark with a total revenue up by 14.8% compared to last financial year. Tata Global Beverages is moving beyond tea, coffee and water to foray into the dairy business. The group is also entering the e-tailing space with TataCliq, a phygital model which allows for greater convenience when it comes to making purchases or returns.

2. AirtelBrand Value: Rs 350.44 billion

As India’s leading telecom network, Airtel is also a lightning rod for issues that continue to plague the sector: call drops, spotty service and a customer base with a litany of complaints. While most companies would try to brush this under a rug or a dozen, Airtel has established its credentials as a leader, touting itself as the open network. It is allowing subscribers the chance to see the number of towers, apprising them of new services and responding quickly to feedback and critiques – just one of the many factors that have pushed Airtel up a notch, moving one rank to No 2. The brand value has grown by 8% over last year. In the first quarter of this year, its losses in Africa halved to $78 million on the back of strong data consumption and stable currencies in most of the markets it is present in. Through 2015, it launched its 4G LTE services across India after months of trials. A tie up with Uber ensured that Airtel Money could be used to pay for cab rides. In January this year, a merger was announced with Malaysia’s Axiata Group in Bangladesh to create the country’s second largest network.

3. Reliance IndustriesBrand Value: Rs 349.24 billion

If Reliance Industries was not diversified enough already, the company added mobile phone handsets to the mix this year. According to research firm IDC, the LYF brand is already in the Top 5, beating many more storied players who’ve been in the market far longer. LYF’s range includes sub $50 devices, equipped to take advantage of 4G and come bundled with a preview of Reliance’s ambitious Jio suite of services. Mukesh Ambani, chairman, Reliance Industries has described Jio, as “one of the largest transformational greenfield digital initiatives anywhere in the world, with an investment of over 150,000 crore.” While official launch dates are still shrouded in mystery, Ambani has asserted his service will cover 70% of the country from the day of launch. Reliance Industries signed on veteran sports marketing and management professional Sundar Raman, former chief operating officer of the IPL, as Chief Executive Officer - Sports to further the group’s interests in this area. The brand value of the company is up 3% over the past year, even as it cedes a rank.

4. HDFC BankBrand Value: Rs 240.06 billion

HDFC ranks among the highest climbers in terms of year-on-year brand value, up 15% from 2015, powered, in part, by its attention to the needs of emerging segments. For instance, SmartUp, launched earlier this year as a dedicated solution for the banking needs of startups, in association with Zone Startups India (ZSI), a Mumbai-based accelerator, aims to provide enhanced transaction limits with no minimum balance for the first six months and customised salary accounts besides advisory and forex services. Not one to be left behind in the app space, HDFC Bank has rolled out PayZapp, which aims to be a secure convenient payment gateway. For its rural audiences, HDFC came up with ‘Dhanchayat’, an educational film on the dangers of borrowing money from unorganised sources. HDFC Bank has proved to be a marketer unafraid to dabble with new untested concepts, going in for a sonic branding exercise which has led to the creation of its own signature music.

5. LICBrand Value: Rs 236.05 billion

India’s largest insurance company, is also one of its most trusted. Year after year, LIC dominates Brand Equity’s Most Trusted Brands survey by a large margin in the life insurance category. After years of high decibel emotionally charged advertising from several private players, LIC still controls nearly 70% of the insurance market. Among its nods to a more progressive outlook in doing business is introducing the third gender as an option in its proposal forms in line with a 2014 verdict from the Supreme Court. LIC has also tied up with several partner banks - most recently Axis Bank - to sell its insurance policies.

6. The State Bank of India (SBI)Brand Value: Rs 232.21 billion

For the second year in a row, SBI was declared by the central bank, the Reserve Bank of India, to be one of the two banks in the country deemed ‘too big to fail’. The technical term is D-SIBs or domestic systemically important banks. The systemic importance score was arrived at after an analysis of the banks’ size as a percentage of annual gross domestic product (GDP). SBI remains the bank with the largest ATM network in India, clocking in over 21,000, with offices in 32 countries. SBI recently launched the ‘Japan Desk’, a first-of-its-kind initiative to help Japanese corporates looking to invest in the country, with banking and advisory services. With its mobile wallet State Bank Buddy available in 13 languages, and bundled with special offers from brands like Domino’s and makemytrip, SBI belies the reputation that government-run services are saddled with - of being sluggish to adapt to new developments and being most comfortable with the older ways of doing business.

SBI Card, one of India’s leading credit card issuers, has partnered with 7 of India’s biggest e-commerce players including Amazon India, BookMyShow, FabFurnish, LensKart and Ola. It has partnered with PayPal allowing customers to use debit cards via the payment gateway.

7. InfosysBrand Value: Rs 230.64 billion

The posterchild for the Indian IT services and consulting revolution, Infosys maintains its position and registers an impressive 12% increase in brand value. Even as it faces challenges due to a more cautious client attitude post-Brexit, Infosys continues to innovate. New CEO Vishal Sikka has brought a greater focus on “design thinking”, a change from the more process-driven approach of the past. Its artificial intelligence platform Mana launched this April “brings machine learning together with the deep knowledge of an organisation to drive automation and innovation.” It aims to help firms reinvent their system landscapes and lower maintenance costs. The 193,000-strong organisation has launched an apprenticeship program to identify and mentor its best young talent. Infosys also launched the #sitwithme campaign on International Womens Day this year to work towards a more balanced diverse leadership.

8. ICICIBrand Value: Rs 166.59 billion

Like the State Bank of India, ICICI was declared ‘too big to fail’ by the Reserve Bank of India. While it reported a 25% drop in net profit for the last quarter, its retail banking business posted an 18% growth. In January 2016, ICICI entered South Africa with a full service branch at Sandton in Johannesburg. Keeping it future ready are initiatives like the ICICI Appathon, a mobile app development challenge. The winner, iMobile SmartKeys, helps customers transfer money without exiting the app they are currently on: be it a game, chat, email or browser. The ICICI Foundation launched a nationwide referral program called ‘Gift a Livelihood’. It invites people to refer deserving but underprivileged youth to be trained at the ICICI Foundation Skills academy which since inception in 2013 has trained and placed 36,000 youth across 22 centres.

9. MahindraBrand Value: Rs 156.78 billion

With 14 new products last year, no one can accuse Mahindra of takings things easy or taking its foot off the pedal. A US$17.8 billion global federation, Mahindra’s brand value is up 14%. Earlier this year, following its 51% stake in Peugeot’s motorcycle business, it was reported to be looking to bring in other iconic bike brands like BSA or Norton. For the more eco-conscious US market, Mahindra has launched GenZe - an electric scooter and e-bike. Airbus Group awarded an aero-components production contract to Mahindra Group to manufacture airframe parts for the AS565 MBe Panther rotorcraft. The contract makes Mahindra Aerostructures the first Indian company to become a Tier I supplier to Airbus Helicopters. A release from the company states “Mahindra Aerostructures will gradually emerge as the global single source supplier to Airbus Helicopters for these parts,” a true Make-In-India partnership. In vehicles, the category it is most strongly associated with, Mahindra’s stated aim is to double revenue and be the second largest vehicle maker in India by volume. It also has a play in the burgeoning organised pre-owned vehicle market with Mahindra First Choice Wheels.

10. GodrejBrand Value: Rs 153.88 billion

At No 10 — down one spot from last year — is a company that intends to be 10 times the size it was in 2010. Godrej has been pursuing its vision to touch the $10 billion mark by 2020 across the extremely diverse businesses that make up the conglomerate from consumer products to real estate. This year, Godrej has been in acquisition mode, acknowledging that its stated targets require both organic and inorganic growth. One of its acquisitions, the US-based Strength of Nature, has a strong global presence and focuses on serving women of African heritage. It’s in line with chairman Adi Godrej’s stated 3 by 3 strategy: “A presence in emerging markets in Asia, Africa and Latin America through three core categories - hair care, home care and personal care.” It also acquired majority stake in Kenya-based home and personal care company, Canon Chemicals. These acquisitions bolster its presence in sub-Saharan Africa, where consumer products wing GCPL has annualised revenues of $200 million. In the meantime, GCPL is also making a play for the premium hair colour space in India via Bblunt. Godrej Properties achieved the highest sales in a financial year with booking value of 5,038 crore.

Methodology

Interbrand’s brand valuation methodology is considered the most comprehensive and covers the key areas of financial analysis, Role of Brand index, and Brand Strength scores. Interbrand was the first to introduce the brand valuation concept and its proprietary brand valuation technique is one of a select few to be ISO-certified in the world. Beyond resulting in a numeric value, Interbrand’s assessment includes an appreciation of where and how brand and business value can be cultivated. The Best Indian Brands ranking employs the same rigorous methodology that is used for Interbrand’s annual Best Global Brands report.

Interbrand’s Global CEO, Jez Frampton said, “The world today waits as India brims with potential, and I am confident that India is nurturing some truly world-class brands that are set to make their mark on the global stage. We are addressing and celebrating this ambition in Best Indian Brands 2016 by focusing on how to grow Indian brands globally. Indian businesses have some very unique challenges to scale to make it big on the global stage.”

About Interbrand

Interbrand is the world’s leading brand consultancy, with a network of 31 offices in 27 countries. Since it opened for business in 1974, it has changed the way the world sees branding: from just another word for “logo” to a business’s most valuable asset to business strategy brought to life. Publisher of the highly influential annual Best Global Brands ranking and Webby Award-winning brandchannel, Interbrand believes that brands have the power to change the world—and helps its clients achieve this goal every day. Interbrand’s combination of strategy, creativity, and technology delivers fresh ideas and insights, deep brand intelligence, clear business opportunities, and compelling brand experiences. Interbrand is part of the Omnicom Group Inc. (NYSE: OMC) network of agencies. For more information, visit Interbrand.com.