TCS pips HDFC Bank to be most-valuable brand

Tata Consultancy Services (TCS) is India’s most-valuable brand in 2022 replacing HDFC Bank, which held the number one spot since 2014, according to Kantar BrandZ report on India’s most-valuable brands.

TCS was able to grab the top slot due to rising global demand for automation and digital transformation, following the pandemic.

Indian brands have bounced back from the pandemic to increase their brand value by 35 per cent compound annual growth rate (CAGR) since 2020.

India’s top-75 brands are worth $393 billion, Kantar said in its report.

The report also added that the growth rate of Kantar BrandZ Top-75 Most-Valuable Indian Brands far outpaces the figures in other major markets around the world.

The methodology used to get the brand valuation by Kantar is the financial value of the brand (market capitalisation of a listed company or valuation of a brand) multiplied by the market research value generated by Kantar.

Technology and banking brands account for over half of the total value.

Also, six B2B (business-to-business) tech brands and 11 consumer tech brands contribute 35 per cent of the total value of the ranking.

This reflects the rise of Tech India.

“Overall, B2B brands (tech, payments) are on average almost three times as valuable as B2C (business-to-consumer) brands.

"Many of the B2B brands play on the global stage while B2C ones are more focused on the domestic market,” Kantar said.

Telecom providers — led by Airtel at number 4 and Jio at number 10 — also took advantage of growth opportunities as everything moved online, from education, work to parties.

According to the report, six banking brands delivered 19 per cent of the total value.

Also, insurance brands have performed well as the pandemic increased consumer focus on protection of life and health.

New brands, which made it to India’s most-valuable brands this year include Vi (15), formed from a merger between Vodafone and Idea. Byju’s (19) has become India’s most-valuable education brand, and Adani Gas ranked 21.

Deepender Rana, executive managing director, South Asia, insights division of Kantar, said, “India’s leading brands have grown at an exceptional rate, despite global economic headwinds, putting the disruption from Covid behind them.

"They have both driven and benefited from the transformation in consumer and business behaviour as a result of Covid-19.

"This is especially where it relates to the use of technology.”

He further added, “The challenge now is to sustain momentum as inflation bites worldwide and consumers and businesses adjust to the new normal.

"Brand owners will need to work harder to identify and build on what makes them worth paying for and ensure RoI (return on investment) on their marketing expenditure to avoid a margin squeeze.”

The report also noted that 65 per cent of Indians feel anxious about climate change, and 64 per cent believe businesses must play their part.

The brands in the Top 75 are clear on purpose and have a relevant sustainability agenda.

“These include Zomato, which offsets the carbon footprint of its deliveries and packaging.

"Swiggy elevates consumer quality of life with speedy delivery of meals, groceries and healthy items.

"Flipkart also helps smaller local brands to connect with consumers via its platform,” Kantar said in its report.

Soumya Mohanty, managing director, insights division, Kantar, said, “Purposeful and sustainable brands are rewarded. Indian consumers look further than the brand attributes that affect them personally.

"They want brands to improve people’s lives and have a positive impact on the wider society.”

She also added, “Indian brands should have a clear view of their purpose.

They should connect strongly with it by embedding it in their culture.

They must talk about it in creative and powerful ways, and deliver on it without fail.”