MUMBAI: Tata Motors, Reliance Industries and the State Bank of India are the most valuable corporate brands in India, but have each seen a recent decline in their net worth, new figures show.

Brand Finance, the consultancy, reported that the country's top three corporate brands had all retained their positions from similar research in 2010, despite witnessing a decline in their financial ratings.

Tata Motors, the vehicle manufacturer, thus remained the leading player even though its value declined by 12.8% to Rs7,730 crore. 

Reliance Industries, the energy and materials conglomerate in second spot, was also down by 12.7% to Rs6,141 crore, while the State Bank of India, in third place, was off 4.9% to Rs5,995 crore. 

But there were some notable exceptions, and they were mostly smaller businesses growing through diversification. 

These included HCL, an outsourcing company, which saw its brand value rise by 76% to Rs1,277 crore. Mahindra & Mahindra, an automotive to defence business, was also up by 65% to Rs1,395crore.

Axis Bank, a retail bank, logged a similar 73% gain to Rs742 crore, with Idea Cellular, a mobile services company, improving 72% to Rs1,137 crore, and Videocon Industries, a diversified consumer electronics business, up 69% to Rs754 crore.

Unni Krishnan, global strategy director at Brand Finance, warned the leading companies "face serious challenges in their ability to transform themselves in line with the changes taking place in the market".

"If the speed of transformation internally is not in sync with the velocity of change on the outside, there will be a long-term loss in value," he told the Economic Times.

More broadly, Brand Finance stated that global economic volatility, cost pressures, corruption scandals in the telecoms and natural resources sectors, tensions with government over regulatory issues and bankruptcies among airlines had hurt the brand equity of many Indian firms.

"There is hardly any brand that is not impacted by external worries," YLR Moorthi, a professor of marketing at IIM, Bangalore, said.

Data sourced from The Economic Times; additional content by Warc staff