The Tata-Mistry boardroom battle has cost salt-to-software conglomerate Tata group its position among the top 100 global brands.
According to the latest Brand Finance Global 500 report, Tata group’s position has slipped to 103 from last year’s 82. It, however, continues to be one of the most valuable brands from India. In the past, The Tata group has been the only Indian brand that has found a place in the top 100 global brands of Brand Finance.
On October 24, 2016, Cyrus Mistry was ousted as the chairman of the group and a boardroom battle ensued between his and Ratan Tata’s camps. It seems to be the reason its brand value has fallen from $13.11 billion from $13.68 billion earlier.
The 2017 ranking also shows that other Indian brands have all managed to improve their positions. For instance, Airtel, at 242 in 2016, climbed up to 190 in 2017. LIC improved its position to 222 from 283 in 2016. Infosys climbed 50 positions to reach 251.
Other than the Tata group, two other brands that saw their valuations erode are State Bank of India and Larsen & Toubro.
Globally, Google dethroned Apple to become the most valuable global brand. Google’s brand value rose 24 per cent during 2016 (from $88.2 billion to $109.4 billion) whilst Apple’s declined from $145.9 billion to $107.1 billion. The company remains largely unchallenged in its core search business, the mainstay of its advertising income. Ad revenues were up 20 per cent in 2016 as budgets are increasingly directed online and Google finds more innovative ways to monetise users, said Brand Finance.
David Haigh, chief executive officer, Brand Finance, said, “Apple has struggled to maintain its tec
hnological advantage, with new iterations of the iPhone delivering diminishing returns, while the Chinese market is now crowded with local competitors. Apple has been living on borrowed time for several years by exploiting its accumulated brand equity. This underlines one of the many benefits of a strong brand, but Apple has finally taken it too far.”