Tatas vs Birlas – Brands & Business

India Inc. has seen a lot of corporate name changes this year. HLL became HUL, UTI Bank is now Axis Bank, Hutch got changed to Vodafone, Air Deccan was renamed as Deccan and Birla Plus is now UltraTech cement.

It was Birla’s decision to consolidate their cement business under a single brand that led to the brand name makeover for Birla Plus. Since UltraTech is their premium cement brand, Birla’s opt for that over Birla Plus.

Infact when Birla’s acquired the cement business from L&T in 2004, they had the option to merge it with their existing brand Birla Plus. However they chose to go for a new brand that reflects the engineering standard and quality of L&T brand, hence named it as UltraTech with the powerful tag line “The Engineer’s Choice.”

A simple question now. If tomorrow Tata’s wish to enter the cement business, what name would they choose for this new business? Most Probably it would be Tata cement, right?

Salt or Steel, Tea or Telecom, Chemicals or Consultancy, business may differ but for the Tata’s brand will always be TATA. They never wasted any time to build a new brand name for their business.

But Birla’s always prefer a separate brand name. Their textile business is under Grasim, Telecom – Idea, Aluminium Business – Hindalco. Not only the Aditya Birla group, even the other Birla’s choose separate company name for their main business. Hindustan Motors – C.K. Birla, Upper Ganges Sugar & Industries Ltd. – K.K.Birla, Universal Cables – M.P.Birla.

Yes, names like UltraTech and Style Spa do make the brand more attractive, but sometimes even after spending lots of time and money, you can’t get a better brand name.

Also the new brand name won’t have the reliability that the business group name would have. When I first visited Style Spa furniture showroom, I didn’t know it was part of the Birla empire (K.K.Birla group) Knowing that did made a difference to my perception about the showroom.

Now what do you prefer? A fancy name like Style Spa from the Birlas, or a simple one from Tatas like Tata Goldplus?

Comments

  1. Hi,

    I’m the publisher of Desicritics.org, and think you’re a fine blogger. I’d like to invite you to write for Desicritics. Please see this URl for more information on being a Desicritic and email me.

    Aaman Lamba

  2. Siva Rajendran says:

    Hi Aaman,

    Thanks. I’m already a Desicritics member. Will write for Desicritics soon.

  3. vikas kumar says:

    Dear,
    I bought a bed from stylespa, siliguri showroom,
    but I’m not sure about the wood.
    I want to know which type of wood used in the
    bed.

    vikas

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