MUMBAI:
Tata group brands, whose valuation is currently under way, are likely
to be valued at about Rs 25,000 crore (about USD 6 billion), according
to a senior Tata Sons official.
Currently, UK-based Interbrand is involved in valuation exercise
involving 17 group companies and its results would be out in the
next few weeks, Tata Sons Ltd’s executive director R Gopalakrishnan
told reporters while making a presentation on the valuable corporate
brands.
Gopalakrishnan said the market captitalisation of the Tata entities
is about Rs 1,00,000 crore and “I would not be surprised if
brand value is around one fourth the market cap”. The exact
brand value would depend on the outcome of the valuation exercise,
he added.
This is the second brand valuation exercise. The first valuation
involving five group companies including Tata Tea, Tata Motors and
Indian Hotels was carried out in 1997, he said adding, brands were
valued at Rs 3,500 crore by Interbrands then.
Some of the prominent brands in the Tata fold include Taj Hotels,
Tetley, Indica, Titan. Asked about steps to build brands abroad,
Gopalakrishnan said Tata group is rolling on brand building initiative
in South Africa where it is growing business first through automotive
segment.
The group would participate in certain community initiatives like
literacy programmes and establishing hospitals, where it would engage
in mining activity, he added.
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