One year of COVID-19 Pandemic: Resilient Indian brands record value growth despite lockdown

Ajimon Francis, Managing Director - Brand Finance India, said:
“Despite being one of the worst hit nations throughout the COVID-19 pandemic, Indian brands have shown remarkable resilience to the challenges that have ensued since the first lockdown in March 2020. Over the past year, the nation’s top 100 most valuable brands have recorded a 2 percent uplift in total brand value, showcasing their strength.

"Yet the current national health emergency presents an even greater challenge than last year’s lockdown. In these trying times for all of India, brands will need to play their part in supporting recovery.”

Tata Group has retained the title of India’s most valuable brand by a considerable lead with a brand value of $21.3 billion. Operating in more than 100 countries across six continents and employing over three-quarters of a million people, TATA Group is a force to be reckoned with on the global stage. With 30 companies under the TATA Group umbrella, ranging from Tata Steel and Tata Motors to TCS and Tata Consumer Products, the brand has managed to protect itself from COVID-19 damage – this year recording a 6 percent uplift in brand value.

There are eight further conglomerate brands 2021 ranking, which account for over a quarter of the total brand value, making it the most valuable brand category in India.

Sitting behind conglomerates, banking is the nation’s second most valuable sector, with its 16 brands accounting for 16% of the total brand value in the ranking. Indian banks have bucked the global sector trend, recording a cumulative brand value growth of 8 percent year-on-year.

HDFC Bank has become India’s most valuable banking brand, up 11 percent to $6.6 billion and claiming 5th spot in the ranking, ahead of last year’s most valuable Indian banking brand State Bank of India (down 9 percent to $5.8 billion) which sits in 7th.

ICICI claimed the spot of India’s third most valuable banking brand, brand value up 23 percent to $3.5 billion.

The Union Bank of India saw the fastest year-on-year brand value increase in the ranking, growing by 163 percent to $1.2 billion and ,simultaneously, soaring 39 places to claim 31st spot.

The amalgamation between Andhra Bank and Corporation Bank is primarily responsible for this growth - borne as part of a nationwide effort to consolidate India’s banking space. This success is also mirrored at the national level.

The third most valuable sector in India is IT services. Behind TCS (up 11 percent to $14.9 billion) which contributes a significant proportion of TATA Group’s conglomerate brand value, Infosys is the highest ranked standalone IT services brand and 3rd in the overall Brand Finance India 100 2021 ranking, jumping up one place from 2020 following a solid 19 percent brand value growth to $8.4 billion.

Even before the pandemic, Infosys’s leadership recognised the importance of focusing on its service offering, including data security and cloud services.

This focus, paired with key acquisitions to bolster the brand’s end-to-end customer experience offerings, has propelled Infosys to a position where it consistently wins larger transformation, consulting, data management, and cloud service projects.

LTI is the fastest-growing IT services brand this year not just in India but also globally, recording an impressive 68 percent brand value growth to $982 million.

HCL (up 13 percent to $5.5 billion), Tech Mahindra (up 11 percent to $2.3 billion – included in Mahindra Group’s conglomerate brand value), and Mphasis (up 13 percent to $536 million), have all recorded healthy uplifts in brand value this year.

Tech Mahindra continues to work towards accelerated growth through building on its healthy pipeline deals and embracing new 5G opportunities.

Another IT major, Wipro (down 1 percent to $4.3 billion), has dropped one rank, but remains a formidable player in the IT services space. A notable challenger brand in the market, Hexaware has swiftly risen through the ranks, moving 10 spots up since 2020.

Hexaware has also improved its brand strength rating this year to AA-, having scored particularly well on employee and on CSR-related brand equity metrics, such as community and environment. The long-term building of brand equity coupled with technical expertise in automation, innovation, and digital transformation can help Hexaware grow customer preference and successfully compete with the industry's incumbents, ultimately resulting in increased brand value.

HDFC Bank has become India’s most valuable banking brand

Strongest brand

Jio has claimed the title of India’s strongest brand as well as the world’s strongest telecom brand, with a Brand Strength Index score of 91.7 out of 100 and the elite AAA+ brand strength rating, says the report.

Savio D’Souza, Valuation Director - Brand Finance, commented:

“The dominance of the Jio brand across the nation is evident from the results of Brand Finance’s original market research. Jio scores highest in all metrics – consideration, conversion, reputation, recommendation, word of mouth, innovation, customer service, and value for money - compared to its telecom competitors in India. The brand has no major weaknesses within the sector, and unlike many telecom brands globally, Jio has shown that it has broken the mould, and enjoys genuine affection from consumers.”

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.