The brand value for a particular brand is obtained by comparing it with the value that had beery realized in a comparable, current merger or acquisition. Given below is a list of acquisitions from the recent past and the price at which these acquisitions have been made:
|
PRESENT (Rs.in Million) |
||
|
Brand |
Taken over by |
Price |
|
Eveready |
Mcleod Russel |
2900 |
|
Kelvinator |
Whirlpool |
2500 |
|
Farex, Glucon-D, etc., |
Heinz |
2100 |
|
Thums Up, Gold-Spot |
Coca-Cola |
1800 |
|
Cibaca |
Colgate |
1310 |
|
Transelektra |
Godrej |
800 |
|
PAST |
|||
|
Company |
Taken over by |
Year |
Price |
|
Ashok Leyland |
Hindujas |
1987 |
780 |
|
Assam Co. |
Jay Mehta |
1991 |
600 |
|
Shaw Wallace |
M R Chabbria |
1985 |
390 |
|
Berger Paints |
Vijay Mallya |
1988 |
360 |
Cibaca for instance has been bought by Colgate for a sum of Rs. 1310 million. If Cibaca’s equity is Rs.1310 million, what is the equity of Colgate? Perhaps since Colgate has about 17 times as much turnover as Cibaca, if we multiply the equity of Cibaca with a factor of 17 we will arrive at Colgate’s. That puts it at Rs. 22,270 million.
