VSNL board to take up using Tata name today

Internet and telephony major Videsh Sanchar Nigam Ltd (VSNL) may incorporate "Tata" in its name, an issue that is likely to be discussed at the company's board meeting tomorrow.

"The group is looking at adding the Tata brand name either as a prefix or a suffix to the existing "VSNL" name. This means the new company will be called either Tata-VSNL or VSNL-Tata," sources close to the development told Business Standard here today.

However, the most likely option would be to retain the VSNL name and add a tagline "� A Tata Group Enterprise "� as is the case with Indian Hotels that own and operate the Taj group. An addition of "Tata Indicom," the umbrella brand of Tata group's telephony operations, could also happen, they said.

A VSNL executive declined to comment, saying, "these are matters of confidentiality and cannot be divulged." He also declined to reveal the agenda for the board meeting.

According to sources, one of the main proposals that would come up before the board for approval is signing of the "Tata brand equity and business promotion agreement."

Most Tata companies like Tata Motors, Tata Steel, Tata Internet Services Ltd (TISL), and Tata Teleservices (TTSL) use the "Tata" brand or the "Tata Enterprise" tagline. The companies also pay a royalty to Tata Sons, the holding company of the group, for using the brand name.

Immediately after the divestment of the company, the Tata group wanted to add its name to VSNL, but they did not get an approval from government directors.

They scuttled the move stating that VSNL was a strong brand in itself and, hence, the name ought not be changed.

The Indian government still holds a 26.1 per cent stake in the company after privatisation, giving it a say in its decisions.