TCS retains No 1 spot as India’s top brand but tech sector takes a hit

• Tech brands have fared badly in 2023 due to global headwinds, recession threats and more.
• Banking and financial services companies including fintechs saw their value swell during the year.
• PhonePe and Cred were the new entrants into Kantar’s list of Top 75 Indian brands.
• Auto companies made a comeback from Covid-lows with TVS and Mahindra being among the fastest risers.
  

It is not just the share prices of technology services companies that are falling, even their brand value has taken a beating. India’s top brands have borne the brunt of the global economic downturn in 2023. The combined value of Kantar BrandZ’s top-75 Indian brands shed 4% of their value to $379 billion in 2023. Yet, they have fared better than their global counterparts, as its global list has shed 20% of its value.

Most of this loss in brand value was seen in Indian tech brands whose value shrunk by 14%. The brands have a major presence in international markets, and have been impacted by global pressures, recession threats and geopolitical instability, says Kantar.

“If you exclude tech, the combined brand value is quite stable,” said Soumya Mohanty, managing director and chief client officer, South Asia, Insights Division of Kantar.

TCS on the top, as usual

The spot of India’s most valuable brand, however, is retained by tech giant TCS. It has shed 6% of its value but has fared better than tech as a sector.

“TCS has a strong corporate reputation which makes it more likely to retain clients and business. It can also help enable customer retention which is also a factor that adds to brand value,” Deepender Rana, executive managing director of South Asia Insights Division at Kantar told Business Insider India.

Infosys’ brand value dropped by 17%, while HCL Tech’s brand value rose by 3%. Both these brands made it to the top 10. Wipro’s brand value dropped by a sharp 42%.

The rest of the list is dominated by banks, telecom companies with only one consumer company, Asian Paints in the top 10.

Kantar BrandZ Top 10 Most Valuable Indian Brands 2023

Rank 2023	Brand	Category	Brand Value 2023
1	Tata Consultancy Services	Business Technology and Services Platforms	$42.9 bn
2	HDFC Bank	Financial Services	$33.6 bn
3	Infosys	Business Technology and Services Platforms	$24.1 bn
4	Airtel	Telecom Providers	$22.5 bn
5	State Bank of India	Financial Services	$14.4 bn
6	ICICI Bank	Financial Services	$12.9 bn
7	Asian Paints	Paints	$12.8 bn
8	Jio	Telecom Providers	$11.7 bn
9	Kotak Mahindra Bank	Financial Services	$10.3 bn
10	HCL Tech	Business Technology and Services Platforms	$9.3 bn

Source: Kantar

Autos zoom ahead

Auto brands have been buzzing in 2023 and the sector has provided two of the fastest risers of the year.

TVS, valued at $1.9 billion, occupies the 51st rank. The company has gained 59% in value and leapt 24 places thanks to a number of successful product launches and a 10-year partnership with BMW that gives it leverage in markets such as Europe, the US and Canada.

Mahindra is valued at $2.01 billion and occupies the 47th rank. Mahindra, which grew its value by 48%, made itself incredibly meaningful in consumers’ eyes, and also significantly boosted its salience.

The sector saw the second highest category growth of 19%, after tobacco. Royal Enfield’s value also swelled, thanks to Indians’ preference for premium products. A lot of Indian auto brands, like Tata Motors, also entered EV markets and are able to meet consumer needs better, observes Rana.

“Auto companies’ value declined during Covid and made a comeback after they dealt with supply chain issues and dealt with bottlenecks,” said Mohanty. India’s largest auto company Maruti Suzuki, however, shed 5% of its brand value, while Bajaj Auto’s brand value went up by 9%.

The value in finance

Financial services brands have grown their brand value by 6% with 16 brands and contributing to the biggest chunk of the total brand value. Their growth is attributed to growth in digital banking and Axis Bank whose value swelled 28% and now ranks at 17.

ICICI Bank which ranks at no 6 also has seen its brand value swell by 18%. Two of this year’s new entrants also belong to the fintech sector — PhonePe and Cred. This is in spite of the fact that tech as a sector saw its value go down during the year.

PhonePe has made its debut on the list at No.21 with a value of $4.4 billion. It has quickly become India’s leading digital payment app by investing heavily in the strength of its infrastructure, building connections with partner banks, and developing a huge network of merchant acceptance points, said Kantar.

Meanwhile, Cred has entered at no 48 with a brand value of $2 billion. “Growth of credit and other digital trends are adding to the value of fintechs. There is a need for these services and brands are doing a good job of providing them,” Mohanty tells Business Insider India.

PayTM, Zomato, Swiggy, Flipkart, Naukri, Oyo and Nykaa have shed value; while Byju’s hasn’t been included in the list this year. FMCG as a sector has seen its brand value remain stable during the year.