Tata Consultancy Services emerges as India’s most valuable brand, for the third time in a row: Kantar report

Tata Consultancy Services (#46), HDFC Bank (#47), Airtel (#73), and Infosys (#74) have made it to Kantar BrandZ ‘Most valuable Indian brands report 2024’. While India has four brands in the global top 100 list, the USA has 56 and China has 11 in the list of toppers. The top five brands in the global list include Apple (#1), Google (#2), Microsoft (#3), Amazon (#4), and McDonald’s (#5).

With a brand value of $49.7 billion, Tata Consultancy Services (TCS) has retained its leader position as India’s most valuable brand for the third consecutive year, posting a 16% rise in brand value over 2023. This rise is driven by investments in innovation, particularly in AI and digital transformation.

Financial services major, HDFC Bank’s brand value stood at $38.3 billion, and that of the telecom provider Airtel and the business technology and services player Infosys at $29.9 billion and $25.2 billion, respectively.

Zomato, standing at No. 31 with a brand value of $3.5 billion has been this year’s ‘fastest riser’, with 100% growth in brand value year-on-year. The report attributes this jump to innovation and expansion into quick commerce, which boosted the company’s efficiency and elevated the customer experience over the last year.

Seven brands have made a debut in India’s brand ranking this year, including jewellery retail brands CaratLane (#45; $2.7bn) and Kalyan Jewellers (#71; $1.6bn), and real estate brand Lodha (#63; $1.9bn). Godrej Properties (#70; $1.66bn) has re-entered India’s Top 75 brands list this year.

Deepender Rana, executive managing director for insights-South Asia at Kantar, said, “Strong brands consistently outperform the market. Over the past year, the companies behind India’s Top 75 brands have achieved an impressive 52% stock market growth, outpacing the 37.6% growth for the sensex. Brands that thrive are those that create a meaningful difference by meeting evolving consumer needs, challenging industry norms, and forging strong emotional connections. The top performers in this brand ranking have excelled by embracing disruption and innovation, leading to significantly higher growth.”

India’s marquee industries

Amongst India’s Top 75 brands listed in the report, ‘Business technology and services platforms’ sector emerged as the dominant group with a collective brand value of about $100 billion. This collective value equals 22% of the total brand value of India’s Top 75 brands.

The financial services players emerged as another dominant group, with 17 brands contributing 28% of the ranking’s overall brand value. Besides HFDC Bank, which retains its position as India’s second most valuable brand, State Bank of India stands at No. 5 with $18 billion in brand value, ICICI Bank at No. 6 (brand value: $15.6 billion), and LIC at No. 10 (brand value: $11.5 billion) feature in the top 10 list of financial services brands in India.

The automotive sector has also seen impressive results, led by Maruti Suzuki at No. 17 posting 24% growth in brand value, while Bajaj Auto at No. 20, exhibiting +94% growth. The next three brands in the automotive sector include Mahindra (#30; +78% growth), TVS (#34; +71%) and Hero (#35; +62%). Mahindra’s SUVs now make up 53% of India’s passenger car market (June 2024). The success of models like XUV700, Scorpio N, and Thar, which continue to see high demand and long waiting periods, has solidified Mahindra’s leadership in mid and premium SUVs.

Rising disposable incomes and a growing middle class are driving demand for vehicles, shifting car ownership from a status symbol to a necessity. Improved infrastructure, government support for EVs and strong export growth expectations are further fuelling the industry’s momentum.

India’s motorised two-wheel vehicle market is bouncing back, driven by a recovering economy and rising demand for personal transportation. Key factors include urbanisation, the need for affordable transport, and a growing young population. New models with advanced technology are also fuelling growth, and meeting diverse consumer needs.

Making a meaningful difference

According to Kantar report, two-thirds of the most valuable global are highly ‘Meaningful’ and ‘Different’ in the eyes of their customers. The report mentions that in 2024, the brands that managed to improve their ‘Meaningful Difference’ saw a 19% brand value growth advantage. These brands outperformed their expectations based on what categories and regions they hailed from.

While maintaining meaningful difference is a global challenge, it is more pronounced in India. With over 20% of Indian brands lagging in this area, the need to adapt and differentiate is more critical than ever to remain competitive and see long-term growth.

As per Kantar’s analysis, India’s GDP growth outlook is bright, with an expected 8.2% increase compared to the global average of 3.1%, potentially positioning the country as the world’s third-largest economy by 2030. However, despite strong investor confidence, large brands face a looming challenge: a long-term decline in demand power. While they may remain stock market favourites for now, they risk losing relevance in the minds of consumers if they don’t adapt to shifting expectations, the report mentions.

Many Indian brands, the report observes, remain heavily reliant on the domestic market, benefiting from a stable local economy. However, the global market of 6.7 billion people remains largely untapped, with overseas contributions accounting for only 26% of the Top 75 Indian brands. Indian brands, it mentions, must expand beyond their borders to unlock their full potential on the global stage.

Soumya Mohanty, managing director and chief client officer-insights, South Asia at Kantar, noted, “It’s not enough to make consumers want to buy, brands must build their saliency and relevancy across all touchpoints, from advertising to in-store experiences. Successful brands create a consistent presence that resonates with consumers, driving both awareness and loyalty. Those that thrive have combined strategic reach with compelling, creative messaging to capture consumer attention and drive significant brand growth.”

What makes brands click

Kantar report makes three observations based on this year’s findings about success secrets of brands. Top amongst this is that brand equity builds long-term shareholder value.

Providing global and India-specific insights, the report shows that the global top 100 brands account for $8.3 trillion in brand value, equivalent to 8% of the global GDP. Similarly, India’s top 75 brands account for $450.4 billion in value, equivalent to 13% of India’s GDP.

The report observes that the brands with higher equity have greater value today and have also grown in value over the years. Moreover, the factor demand power is directly proportional to brand value. The brands that have seen growth in demand power have grown in brand value by 2X rate of the brands that saw a decline in their demand power.

Secondly, creating predisposition can drive both volumes and margins. The report observes that while a brand’s salience, as perceived by customers, contributes 42% to its ‘demand power’, the contribution of the factors of ‘meaningfulness’ and ‘difference’ stands at 34% and 24%, respectively.

In the case of a brand’s pricing power, the most important attributes are ‘meaningfulness’ (from customers’ perspective (48% contribution) followed by its quality of being ‘different’ (47% contribution). Kantar report mentions that it is the meaningful salience that tends to drive volumes while the meaningful difference helps in growing margins.

Strong brands can also withstand market volatility better. The report mentions that stronger brands stand a better chance of surviving and thriving despite difficult external environments or situations. Google Cloud, for instance, the report explains, recovered from a dip in 2023, and managed to even outperform the category in 2024—growing at 22% from 2022. The brand Google posted 74% jump over its 2023 performance clocking a brand value of $70,408 Million in 2024.

Based on this year’s findings, Kantar also offers a five-point advice to Indian brands:

•          To accelerate growth, build as well as convert predisposition to sales.

•          Capture value by aligning your pricing to equity

•          In growing value, it's the difference that makes the difference.

•          Sustain growth via continued identification of new spaces

•          Focus not on today's size but on high future power.