TCS continues to be India’s most valuable brand, but combined value of top brands drops 4%

The decline in the total value of top 75 brands has been driven by brands in the business technology and services platforms category, which have a major presence in international markets, and therefore have been impacted by global pressures, recession threats and geopolitical instability.

Tata Consultancy Services (TCS) continues to be India’s most valuable brand at $43 billion, according to Kantar BrandZ Top 75 most valuable Indian brands report.

TCS continues to successfully capitalise on global demand for digital transformation, despite a tough year for the business technology category in general, the data, insights and consulting company said.

However, the uncertainty in global markets has resulted in decline in the total value of top 75 brands. “Brands like TCS and Infosys have seen decline in brand value due to their exposure to overseas sales. Some of the growth these firms had last year was one off and was because of their customers who were spending big on tech. But that has settled down now,” Deepender Rana, Executive Managing Director- South Asia, Insights Division, Kantar, told Moneycontrol.

The decline has been driven by brands in the business technology and services platforms category, which have a major presence in international markets, and therefore have been impacted by global pressures, recession threats and geopolitical instability, the report said.

India’s top 75 brands have a combined brand value of $379 billion, a decline of 4 percent from 2022. TCS and Infosys recorded a drop of 6 percent and 17 percent, respectively in 2023.

“India remains resilient as there is only a 4 percent drop in brand value of the most valuable brands. However, globally there is a 20 percent drop. India continues to be strong despite the cooling of post-Covid bounce because of the strong domestic consumption. For B2B (business-to-business) tech brands, they have a dependence on overseas sales and this is where the global economy has been impacted more whereas India has continued to grow. Even within technology, global is down by 23 percent and India tech is down by 14 percent. So, it is a positive story for India and Indian brands,” Rana added.

He further said that India’s GDP (gross domestic product) growth has been 7 percent CAGR (compound annual growth rate) over the last 10 years while brand value growth is 19 percent. “Indian brands are significant value creators for our economy. We expect this trend to accelerate in the next decade as Indian brands don’t just thrive in India, but also explore growth overseas.”

The automotive category produced the top 75’s two fastest risers — TVS with a brand value of $1.90 billion and Mahindra at $2.01 billion. The category recorded the second highest category growth at 19 percent.

“India’s automotive brands have quickly responded to changing consumer needs, notably the shift in preference from hatchbacks to SUVs, and the demand for electric vehicles,” the report said.

TVS gained 59 percent in value and Mahindra grew its value by 48 percent.

The ranking’s 16 financial services brands contribute the biggest chunk of its total value. “They grew 6 percent due to the boom in digital banking, led by Axis Bank and ICICI Bank.

Telecom providers also performed strongly, resulting in a 17 percent rise in total brand value. Airtel saw the advantage of the end of the price wars, said Soumya Mohanty, Managing Director & Chief Client Officer- South Asia, Insights Division, Kantar. “Airtel was also on the global list and was in top 10 brands and has the highest brand value growth worldwide,” she added.

“There is great diversity within the India Top 75 brands. They are a combination of established names and dynamic young brands, both global and local in footprint. What they have in common is their ability to be essentially Indian. Through a deep and detailed understanding of consumers in the market, and adopting the local culture and ethos, even huge international brands are seen and cherished as homegrown,” Mohanty said.