TCS Maintains its Position as India's Leading Brand, While Total Value of Top Brands Declines by 4%

29 Sep, 2023

TCS Maintains its Position as India's Leading Brand, While Total Value of Top Brands Declines by 4%

Tata Consultancy Services (TCS) has once again secured its position as India's most valuable brand, with an estimated value of $43 billion, according to the recently published Kantar BrandZ Top 75 Most Valuable Indian Brands report.

TCS has managed to navigate the challenges in the business technology sector, capitalizing on the surging global demand for digital transformation. Despite a challenging year for the business technology category as a whole, TCS has continued to thrive, as confirmed by the data, insights, and consulting company.

However, the global economic uncertainty has taken its toll on the overall brand values of the top 75 Indian brands. Brands like TCS and Infosys have experienced a decline in brand value due to their significant exposure to overseas markets. Deepender Rana, Executive Managing Director-South Asia, Insights Division at Kantar, explained, "Some of the growth these firms experienced in the past was driven by customers making substantial investments in technology, but that momentum has now stabilized."

The decline in brand value has primarily affected brands in the business technology and services platforms category, which have a substantial international presence. They have been impacted by global pressures, recession threats, and geopolitical instability, as outlined in the report.

The collective brand value of India's top 75 brands has witnessed a 4 percent decline from the previous year, now standing at $379 billion. TCS and Infosys have recorded drops of 6 percent and 17 percent, respectively, in 2023.

Despite these challenges, India has demonstrated resilience, with only a 4 percent drop in the brand value of its most valuable brands, in contrast to a 20 percent drop globally. Rana emphasized that India's continued strength can be attributed to robust domestic consumption. He pointed out that for business-to-business (B2B) tech brands, their dependence on overseas sales has been a vulnerability, which has been more acutely impacted by the global economic conditions compared to India's domestic-oriented growth.

Rana further highlighted India's impressive economic performance, with a 7 percent Compound Annual Growth Rate (CAGR) in GDP over the past decade, while brand value has grown at a remarkable rate of 19 percent. He predicts this trend will accelerate in the coming decade as Indian brands expand their presence overseas.

In the realm of Indian brands, the automotive category has seen notable growth, with TVS and Mahindra emerging as the fastest risers. TVS boasts a brand value of $1.90 billion, while Mahindra stands at $2.01 billion. This category recorded the second-highest growth rate at 19 percent. The report attributes this growth to the automotive industry's adaptability to changing consumer preferences, including the shift from hatchbacks to SUVs and the demand for electric vehicles.

Financial services brands also played a pivotal role, contributing significantly to the total brand value. They experienced a 6 percent growth, driven by the surge in digital banking, with Axis Bank and ICICI Bank leading the way.

Additionally, telecom providers demonstrated strong performance, contributing to a 17 percent increase in total brand value. Airtel, in particular, benefitted from the end of price wars and secured a prominent position in the global list, boasting the highest brand value growth worldwide.

In summary, the Kantar BrandZ Top 75 Most Valuable Indian Brands report showcases the diversity within India's top brands. These brands encompass both established names and dynamic newcomers, with both global and local footprints. Regardless of their origins, these brands have succeeded by deeply understanding the Indian market, adopting local culture and values, and forging strong connections with consumers.