The combined value of India’s top brands has seen a significant increase of 33% over the past year, as reported by the second yearly BrandZ Top 50 Most Valuable Indian Brands ranking from WPP and Millward Brown. This growth rate is the most substantial among all BrandZ rankings in the past decade, surpassing the Global Top 100, China, Latin America, and Indonesia.

The current total worth of India’s Top 50 brands is US$92.2 billion, a considerable rise from nearly US$70 billion in 2014. This growth can be attributed to brands effectively catering to the increasing empowerment of Indian consumers and the government’s initiatives to foster a more favorable business climate.

Financial sector brands experienced the most significant growth (49%), playing a major role in the overall value increase. However, other sectors also demonstrated considerable growth, reflecting the broad strength of both the Indian economy and its brands. Home and personal care brands saw a combined increase of 32%, followed by the auto aftermarket sector (28%), automobile brands (27%), and telecom providers (21%).

Private companies, state-owned enterprises (SOEs), and multinational corporations publicly traded in India all showed growth, highlighting the market’s receptiveness to various brands. Privately owned brands constitute more than half (52%) of the Top 50, demonstrating India’s robust entrepreneurial spirit. Multinational corporations own 30% of the brands, successfully adapting to Indian consumers’ needs and integrating themselves into their lives, ultimately being perceived as ’local'.

The BrandZ Top 50 Most Valuable Indian Brands

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        Rank                                   Brand value   Brand value     Rank
        2015               Brand    Category     2015 ($m)        change     2014
           1           HDFC Bank       Banks        12,577           33%        1
           2              Airtel    Telecoms        11,039           34%        2
           3 State Bank of India       Banks         9,374           37%        3
           4          ICICI Bank       Banks         5,122           45%        4
           5        Asian Paints      Paints         3,867           38%        6
           6          Bajaj Auto Automobiles         3,345           10%        5
           7                Hero Automobiles         2,907           34%        7
           8           Axis Bank       Banks         2,494           New      New
           9 Kotak Mahindra Bank       Banks         2,394           39%        9
          10       Maruti Suzuki Automobiles         2,318           54%       11
          11                Idea    Telecoms         1,981            5%        8
          12             Castrol  Lubricants         1,773           40%       15
          13       IndusInd Bank       Banks         1,542           46%       19
          14          McDowell's     Alcohol         1,516            9%       13
          15              Nestlé  Food/dairy         1,498           22%       16

Key takeaways from the study are:

Financial brands maintain their dominance. Holding 13 spots in the Top 50 and representing 41% of its value (US$38.1 billion), the financial sector solidified its brand strength through continuous efforts to enhance customer service. Leading the growth are Union Bank of India (no. 46, +72%), Punjab National Bank (no. 22, +61%), and IndusInd Bank (no. 13, +46%).

Home and personal care brands witnessed a 32% surge, fueled by rising disposable income, increased spending on premium products, and marketers’ investments in both traditional and new media. The 12 brands within this segment contribute 15% (US$13.4 billion) to the total brand value of the ranking. Lakme (no. 44, +69%), Lifebuoy (no. 31, +49%), and Colgate (no. 26, +44%) are the fastest-growing brands in this category.

Indian consumers anticipate brands to contribute actively towards a better society, and brands fulfilling this expectation enjoy a higher brand value. Lifebuoy (no. 31) is committed to improving consumer hygiene behaviors, while Asian Paints (no. 5) aims to revitalize living spaces and bring joy to people’s lives.

Unlike other markets, trust in brands is steadily increasing in India. Consumers appreciate brands, with 33% expressing trust in them. Among the most trusted brands are jeweler Tanishq (no. 21), part of the esteemed Tata conglomerate, and Colgate, a brand deeply ingrained in Indian culture, known for organizing dental checkup camps to promote dental hygiene awareness.

All four newcomers are Indian - Axis Bank, Canara Bank, MRF (tyres), and Royal Enfield. This includes three privately owned companies and one SOE.

E-commerce and mobile brands are poised to disrupt the market as they rapidly expand and connect with consumers. However, they are not yet eligible for the Top 50 ranking as they are not publicly traded.

The BrandZ India Top 50 outperforms SENSEX (a weighted index of 30 stocks on the Bombay Stock Exchange), demonstrating that valuable brands yield higher returns. Between August 2014 and July 2015, a stock portfolio comprising the Top 50 increased its share value by 18.6%, while India’s SENSEX index rose by only 1.5%. The BrandZ portfolio generated an ROI over 12 times greater.

David Roth, CEO of WPP’s The Store, noted, “The 2015 study highlights India as a market brimming with opportunities, where consumers feel empowered, a sentiment reflected in their brand choices. The new Modi government is dedicated to fostering an environment conducive to brand growth. However, India possesses unique characteristics compared to other rapidly growing markets. Simply replicating strategies successful elsewhere won’t work in India. Brands aiming to compete in India must thoroughly understand its nuances, such as the need to modernize while respecting tradition and the desire to maintain a fundamentally Indian identity.”

Prasun Basu, Millward Brown’s Managing Director for South Asia, stated, “India’s top brands are robust and continuously strengthening, but there’s no room for complacency. The top four brands needed to increase their value by an average of 37% to maintain their positions from the previous year, and nearly 10% of brands featured in the 2014 Top 50 have dropped off. To capitalize on the continued surge in consumer confidence and optimism, brands must understand the evolving consumer landscape, respond with innovative products and impactful communication, and experiment with and invest in new media that reflect the current spirit of the country.”

Ranjan Kapur, Country Manager for WPP India, added, “Building a successful brand in India also entails contributing to the nation’s development. While consumers place their trust in brands, this trust is fragile. Brands must actively work towards maintaining this trust by connecting with the country’s shared sense of responsibility. They need to find avenues to support the national agenda and contribute to developing a more modern, prosperous, and equitable society.”

Interested?

The India Top 50 is part of the BrandZ family of brand valuations, which includes the Global Top 100 (released on May 27, 2015), Indonesia Top 50 (released on August 19, 2015), Latin America Top 50 (to be released on September 23), and China Top 100 (to be released in February 2016).

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*The brand valuation for the BrandZ Indian Top 50 was conducted by Millward Brown, WPP’s specialized marketing and brand consultancy. The methodology mirrors that used to calculate the annual BrandZ Top 100 Most Valuable Global Brands ranking, now in its tenth year.

The valuation combines rigorously analyzed financial data from Bloomberg and Kantar Worldpanel with the opinions of over 100,000 consumers, for more than 1,000 brands across 78 categories. All brands meet these two eligibility criteria: The brand is owned by an enterprise listed on a stock exchange in India.

In the case of banks, at least 25% of earnings were derived from retail business.

The valuation methodology for the BrandZ Top 50 Most Valuable Indian Brands ranking uniquely combines financial data with Indian consumer perceptions, making it the definitive study of the most successful brands in this rapidly growing market. The ranking is accompanied by a comprehensive report analyzing the success of the Top 50, identifying key drivers of brand growth in India, and providing actionable recommendations to help brands effectively navigate this environment.