NEW DELHI: A brand valuation exercise at Godrej Consumer Products Ltd (GCPL) has pegged the value of its top five brands at Rs 2,650 crore. In a landmark study spanning two months, the FMCG major's top five brands - Godrej Hair Dye, Cinthol, Godrej No.1, Ezee and FairGlow - were valued individually by UK-based brand consultancy, Brand Finance.
The study has also put the potential value of the brands at Rs 3,880-crore, which could perhaps be unlocked later. No wonder, Adi Godrej emits ebullience and earnestness over the wire. When contacted, the diminutive Parsi, who heads the 110-year-old Godrej group, cited the reason for valuation as “private and proprietary”.
However, going by the Godrej group's recent acquisitions of Keyline Brands (UK) and Rapidol (South Africa), one would assume that product overlaps are natural. And that throws up a possibility that GCPL may look at putting some of the brands on the block.
“Rationalisation can't be ruled out,” Mr Godrej told ET. For now, GCPL has proposed to track and publish the value of its brands in its annual report and investor relations programme. Alongside, the company's logo - the red signature of group founder Ardeshir Godrej - may also be undergoing a change in a more globalised set-up, punctuated by the group's twin values of reliability and durability.
“We have hired the services of London-based research agency, Interbrand, to enhance the brand identity of the group, to make the brand image more contemporary and relevant,” Mr Godrej said.
Apart from image, Interbrand would be assisting the group on a new package design and repositioning of existing brands. According to industry sources, the group is spending anywhere between Rs 5-10 crore for the brand makeover. Over the last one year, GCPL has been active in building a global footprint.
Apart from acquiring FMCG biggie, Keyline Brands and hair colour company, Rapidol, GCPL has partnered with leading global player, SCA Hygiene Products, to enter a nascent, but high potential baby, feminine hygiene and adult incontinence businesses.
The last one year has seen a slew of companies initiating a process to put values to their brands. A trend first reported by ET, saw companies such as VLCC, Air Deccan, Pritish Nandy Communications, Cholayil Group undertake similar exercises aimed at putting a value to their brands. Sources say Bajaj Hindusthan is mooting a proposal to undertake a similar exercise for its consumer product division which hawks brand like Bajaj Brahmi Amla and Bajaj Almond Drops.
Virtually every company in the FMCG space is formally or informally doing a brand valuation to give some sort of measurability to their intangible values. This could serve as a feel good factor for the shareholders. And with big foreign companies looking to enter India with plans that could include outright purchase of brands for quick access to markets, such an exercise may also help.