Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

TATA group has had a very promising 2011 so far with revenue rising in conjunction with the group’s brand value.

After revealing disappointing revenues of $67.4bn in 2010, 5% lower than the 2009 equivalent, the company has rebounded in 2011 with an estimated revenue of $83.5bn; 24% greater than 2010. The improvement in the company’s financial position and the continued reverence accorded to the company’s brand has meant that its brand value increased between January and September 2011 from $15.1bn to $15.8bn. Undoubtedly company forecasts were assisted by first quarter profit at TATA steel almost tripling due to the sale of its stake in Riversdale Mining Ltd. Net income for the steel firm increased from $0.4bn to $1.17bn.

Many global conglomerates have been have been hit hard by falling demand in western economies and rising commodity prices, and certainly profits at TATA were not as high as they could have been due to the group’s margins being eroded by inflating costs. However, the high level of diversification in TATA’s business portfolio has meant that the company has been able to generate revenues in a numerous areas. Furthermore, TATA’s high level of brand equity in its native India, where steel demand is forecast to be double that of the global economy, has ensured that its products there are still well in demand, indeed it has recently increased the capacity of its only Indian steel plant by 43%. In addition, TATA’s significant interests in manufacturing have been helped on by favourable conditions in India’s primary sector and the analysts believe boons for large-scale, primary industries such as agriculture will help feed the demand for its other products especially in the manufacturing sector.

However, one area of TATA that did suffer was its automobile business, including brands such as Jaguar. Sales of luxury goods such as high performance vehicles are disproportionately affected by slowdowns in the global economy and this certainly had an effect on sales with Jaguar unit purchases declining by 27% in the three months ending June 30th 2011 compared to the year earlier period. Whilst TATA Motor’s own vehicle brand is not a luxury one, its sales have suffered due to an increase in interest rates in India where 80% of vehicle purchases are funded using automobile loans.
Historically, TATA’s brand equity has always been very strong with the group having been regarded as one of the world’s most reputable organisations for a number of decades. The group is 65.8% owned by charitable trusts and the it has won numerous awards for its philanthropic activities including the Carnegie Medal of Philanthropy in 2007.

Last changed September 5, 2011

League tables

Tata appears in the following brand league tables:

Rank 45 in the Global 500 2012.
Rank 50 in the Global 500 2011.
Rank 50 in the Global 500 2011.
Rank 65 in the Global 500 2010.
Rank 51 in the Global 500 2009.
Rank 57 in the Global 500 2008.
Rank 100 in the Global 250 2007.