Indian companies are keen on acquisition as building brand outside is expensive: Brand Guru Rama Bijapurkar

While in conversation with senior journalist Kaveree Bamzai, Business Strategist and Brand Leader Rama Bijapurkar said that a lot of Indian companies have chosen to acquire brands overseas rather than exporting a brand and building a brand elsewhere. She was speaking at The New Indian Express' e-expressions as part of the Platinum Pride series to celebrate 75 years of Indian independence.

"It is my observation, over time, that a lot of Indian companies have chosen to go through the route of acquiring brands overseas rather than exporting a brand and building a brand elsewhere. We prefer the acquisition route with an exception of the Tatas," she said. Brand Custodian of the Tata Group, Harish Bhatt, was also on the panel along with Bijapurkar. 

Bhatt said that the Tata Group follows the trend of both acquisitions and making homegrown global. He said, "A homegrown brand like the Taj Group of Hotels is in many countries around the world. Last year, it was ranked to be the world's strongest hospitality brand. Tata Consultancy is present in more than a hundred countries globally and it is a dominant name in its field." He added, "On the other hand, you have examples of Tetley and Jaguar Land Rover which have been acquired by the Tata Group over the years."

Answering a question regarding the reason behind several Indian companies preferring the acquisition route, Bijapurkar said, "It has happened because when you compare Rs 70 to a dollar, it is easier to buy and acquire rather than put a large amount of investment required to build a brand. Building brand overseas is an expensive proposition."

Bhatt said that in order to go global, Indian companies need to focus on three or four new markets. "Every sector must have companies that have global ambition. I would love to see Tanishq go global. Some of its products are fabulous," said Bijapurkar when asked to elaborate. 

Meanwhile, Bhatt argued that Tanishq did enter Dubai and added, "In sectors like jewellery, sarees and large textiles, India has the intrinsic capacity to deliver global brands in the future. If you're in any particular sector, be it IT services or pharma, you have to choose your battles carefully and the choice of countries differs from sector to sector."