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Brand plan may cover Tata MNC ventures

Reeba Zachariah & Arijit De

The Tata group is now planning to rope in its joint ventures with multinationals into the Tata Brand Equity and Business Promotion scheme.

However, these joint ventures will not contribute to the brand equity fund which goes into promoting the Tata brand. Since the companies had two sponsors, earlier there was confusion whether these ventures would be roped in at all.

However, the terms of the BEPB scheme applicable to the ventures will undergo a significant change than what applies to Tata group companies.

Confirming the development, top sources in Bombay House said, "There have been several joint ventures which have expressed their intention to participate in the BEPB programme.

Though the Reserve Bank of India regulations on royalty payments have been relaxed, these ventures will not contribute to the Brand Equity corpus."

"We are now working on changes to be made to the scheme so that these can be adopted by the joint ventures. They also have to be governed by the best practices of the overseas partners," they added.

However, the Tata joint ventures, planning to be a participant in the Brand Equity programme, could not be ascertained. The Tata group operates a range of JVs with multinationals operating in diverse as fields as insurance, energy, call centre, automotive, engineering, etc. Currently, the group has signed on 42 group companies to the Tata Brand Equity scheme. The Tata empire comprises of over 80 companies spread across various sectors.

Group companies subscribing to the Brand Equity scheme has to strictly adhere to certain benchmarks, code of ethics, etc.

Tata companies subscribing to the scheme are split into two tiers and the royalty payment is based to the degree of usage of the Tata name.

A large number of Tata joint ventures already participate in the Tata Business Excellence Model which is based on the Malcolm-Baldridge model.

Tata Quality Management Services, a division of Tata Sons, ensures that Tata companies achieve well-defined levels of business excellence using the Tata Business Excellence Model.

It also has the mandate of institutionalising TBEM within companies that sign the Tata Brand Equity Scheme.

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