Tatas 103rd in global brand value ranking

The Tata group is the only company of Indian origin to figure among the top 250 most valuable global brands.

However,the Big T has a lot to catch up as nearly 13 brands with smaller enterprise value than the Tatas have a better brand valuation, according to an annual compilation done by the UK-based brand valuation company, Brand Finance.

Ranked at 103, the Tata brand that has business interests from steel to software was valued at $7.38 billion. But brands such as Nike, Gucci or Kellogg's, with a lesser enterprise value than that of the Tatas' $40.59 billion, got a better brand valuation.

For instance, Nike, with an enterprise value of $21.15 billion - half that of the Tatas, has a brand value that is 2.5 times higher ($17.8 billion).

Enterprise value is the combined market value of equity and debt of a business less cash and cash equivalents in the last fiscal.

The brand value of the Tata group is just 18 per cent of its enterprise value.

But this percentage could go down further as the conglomerate gets bigger, if you consider the example of another conglomerate, GE which is at number seven in the list. In the case of GE, the brand value is just a little over 4 per cent of the corporation's enterprise value. For the record, GE is a $31 billion brand.

With high profile acquisitions by the Tatas "� that of UK steelmaker Corus last week and speciality beverages maker Glaceau in 2006 "� the brand value is expected to rise to more than $9 billion in the next fiscal.

Currently companies from the US and EU dominate 82 per cent of the brand value league table. Beverages giant Coca-Cola occupies the number one position, despite the fact that colas have faced a backlash globally.

A total of 112 brands or 45 per cent of the total brands in the league table were from the US, representing the dominating influence that the US brands wield on global businesses.

Brand Finance executives anticipate the balance to tilt in favour of brands from developing countries.

"Over the next 10 years, both non-traditional brands and brands from the developing world will be challenging for a position within the top 20," said the report.

Total value of the 250 most valuable global brands is $2,179 trillion.

Much of this brand value is not located in conventional consumer goods sectors, underlining the point that brands now create significant economic value in all sectors, from utilities to finance.