Infosys brand value up a mere
Rs 1.30 billion in 2000-01
K Giriprakash
The brand value of Infosys Technologies has gone up by a mere Rs 1.30 billion to Rs 53.76 billion during the year ended March 31, 2001, according to the listing filed by the company with the SEC in the US.
Infosys Technologies Ltd's brand value during fiscal 1998 was a mere Rs 5.033 billion which jumped by nearly 250 per cent to a whopping Rs 17.269 billion during fiscal 1999. It shot up to Rs 52.46 billion for the year ending March 31, 2000.
The small increase in brand valuation maybe attributed to the downturn in the infotech industry which made the company forecast a 30 per cent growth in revenues during the current fiscal.
The amazing increase in the brand value of a company, which was established less than two decades ago, has been largely attributed to its core competency, market leadership, superior earning power, excellence in management and outstanding workforce, and several other parameters.
To evaluate its brand value, Infosys has been adopting the generic 'brand-earnings-multiple' model, which is the most-widely used method by several global giants. The same model was used to evaluate the brand value of Microsoft by a US-based magazine Financial World.
The US-based magazine adopted one of the variants of the brand-earnings-multiple model and valued the Bill Gates's company at $5.63 billion three years ago, while the market capitalisation of the company was around $60 billion on the date of brand valuation.
The brand-earnings-multiple is based on a multiple of factors like leadership, stability, market, internationality, trend, support and protection. These factors were evaluated on a scale of 1 to 100, internally by the Infosys management, based on the information available to the company.
In one of its annual reports, Infosys has described brand much more than a trademark. "It is a promise of quality and authenticity that customers can rely on. Brand equity is the value addition provided to a product or company by its brand name," the report states.
According to the report, brand equity is the financial premium that a buyer is willing to pay for the brand over a generic or a less worthy brand.
"Brand equity is not created overnight. It is the result of relentless pursuit of quality in manufacturing, selling, service, advertising and marketing. It is the integral of customer experiences...," the report said.
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