Subhash Chandra, promoter of the Rs 4,000 crore (Rs 40 billion) Essel and Zee group of companies, is borrowing a leaf from Tata group chairman Ratan Tata's book.

Chandra has floated a group holding company, Essel Corporate Services. The rights to 33 brands belonging to the 18 group companies are set to be transferred to either Essel Corporate Services or to a new entity that will be formed for the purpose.

The holding company will then license these brands and be paid royalty.

The idea is to have a "traditional corporate branding model", where the holding company, which owns the brand rights, gets a royalty on licensing a brand name to a group's subsidiary or associate company.

Asish Kaul, vice-president, corporate brand development group, which is responsible for the group's brand strategy, told Business Standard, "We are yet to take a final call on the group arm to which all brand rights will be transferred. We are also evaluating the formation of a new entity that will hold all the brands." The group has identified the Essel group as a corporate brand.

This is the biggest centralisation and brand restructuring initiative Chandra has undertaken. It comes close on the heels of a restructuring of group companies, which saw the merger of several arms and closure of unviable outfits.

The Essel group houses the Zee Network brands, all the Alpha brands (for regional channels), online lottery brand Playwin, Zee Education, entertainment brands such as Essel World, Water Kingdom, Fun Republic, packaging brand Essel Propack and others under the Agrani group.

Kaul said: "We may also look at some brand rationalisation if needed. We could drop more brands that do not add much value."

He said: "It is an exercise aimed at evaluating and creating brand value. This will ensure that the group brand is financially meaningful. The move is similar to the traditional branding exercise undertaken by several corporate houses," Kaul added.

Chandra's Essel Propack has already made a mark for itself globally, being the world's largest laminated tube maker with 11 international facilities.

A brand is born

• Subash Chandra considering group holding company.
• Move aimed at consolidating brand value.
• Holding company to house rights to group's 33 brands.
• Holding company to get brand royalty.
• Brand rationalisation not ruled out.