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Rediff.com  » Business » Tata brand value at Rs 25,000 cr

Tata brand value at Rs 25,000 cr

Source: PTI
August 09, 2005 15:21 IST
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Tata group brands, whose valuation is currently under way, are likely to be valued at about Rs 25,000 crore (about US $6 billion), according to a senior Tata Sons official.

Currently, UK-based Interbrand is involved in valuation exercise involving 17 group companies and its results would be out in the next few weeks, Tata Sons Ltd's executive director R Gopalakrishnan said while making a presentation on the valuable corporate brands.

Gopalakrishnan said the market capitalisation of the Tata entities is about Rs 1,00,000 crore (Rs 1000 billion) and "I would not be surprised if brand value is around one fourth the market cap".

The exact brand value would depend on the outcome of the valuation exercise, he added.

This is the second brand valuation exercise. The first valuation involving five group companies including Tata Tea, Tata Motors and Indian Hotels was carried out in 1997, he said adding, brands were valued at Rs 3,500 crore (Rs 35 billion) by Interbrand then.

Some of the prominent brands in the Tata fold include Taj hotels, Tetley, Indica and Titan.

Asked about steps to build brands abroad, Gopalakrishnan said Tata group is rolling on brand building initiative in South Africa where it is growing business first through automotive segment.

The group would participate in certain community initiatives like literacy programmes and establishing hospitals, where it would engage in mining activity, he added.

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