Tata Sons earnings from brand subscription grew 22 per cent crossing the ₹1,000 crore mark in 2023 compared with ₹820 crore in the previous year, according to the company’s annual report.
Tata Sons as the group holding company owns the Tata brand and trademark so all group entities such as Tata Steel, Tata Consultance Services and Tata Motors pay a brand royalty fee to Tata Sons.
The royalty scheme, was introduced in the mid-nineties by former Tata Sons chairman Rata Tata. Over the years, the TBEP scheme has been modified. Earlier, the maximum royalty amount was pegged at 0.25 per cent of annual revenue. Then it was capped at ₹75 crore . The revenue from brand subscriptions has grown from ₹453 crore in 2013-14. The increase in revenue from brand subscription comes even as the number of group entities have grown up to 289 as on March 2023.
The company said its performance in the year under review was the best ever, with a 45 per cent rise in revenue to ₹35,058.5 crore and profit after tax rose 29 per cent year-on-year to ₹22,132.4 crore on a standalone basis. However, Tata Sons’ net profit had zoomed by a record 164 per cent in 2021-22.