This is not the first time a building materials company has changed its name. The company was formerly known as Hyderabad Industries Ltd, which was renamed HIL in 2012. The latest name change may be the company’s attempt to reposition itself as a more modern player in the field of roofing solutions.
In addition, Aditya Birla Group Chairman Kumar Mangalam Birla launched a new brand identity for India’s largest aluminum producer Hindalco Industries Ltd. on Thursday.
Birla said during an event to host a new brand identity that the company hopes to be a good force and confirms the commitment of the country’s largest aluminum producer.
“When younger generations start to take back their family businesses, they often want to introduce a refreshment that aligns with their vision for the business,” Bharadwaj Jaishankar, partner at Indian Industrial Corporation, told MINT.
Jaishankar added that the next generation of entrepreneurs incorporate modern technology into their business, hoping to signal a transformation by adopting a new name that can create savvy perception, but also hope to leverage established brands by retaining established brands in some capacity.
Birlanu and Birla Opus are the latest examples of this name change exercise.
Deeper desire
Jaishankar said that while the flagship of the CK Birla Group has been using the Birlanu name internally for two years, the public announcement and new logo show that it is more than just a desire to change the name.
Companies change their identities for a variety of reasons, from mergers and acquisitions to growing business strategies, reputational damage or attract new audiences. “Sometimes, they also change their names to attract media attention,” Jaishankar said.
The merger of Vodafone India Ltd and Idea Cellular Ltd created a telecom giant called Vodafone Idea in 2017, reflecting the name change powered by the merger. DB Realty’s new identity Valor Estate reflects a strategic shift to develop a more trusted brand image with innovation, sustainability and customer focus.
This trend of identity shift is important, with 1,100 Indian companies adopting new names over the past two decades. These changes range from smaller tweaks (such as removing words) to completing overhauls and even changing the color scheme of their logo to targeting specific categories of customers.
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Amazing trends
Despite the annual steady rate of about 70 names changing in recent years, the peak in 2010 reached 101 such transitions, showing a mint analysis of Capitaline data.
In terms of industry representatives, companies in the banking, financial services and insurance (BFSI) sector accounted for the largest share of name changes (approximately 16%), showing the analysis. Construction and real estate companies continued their share of 8.4%, compared with 7.4% in the information technology sector. The share of the electricity and oil and gas sector was the lowest, at just 1%.
Although identity change is a familiar corporate operation, there is an amazing trend in the public market: many new public companies are rapidly improving their brand identity.
Is the main driving force in a crowded market a huge amount of pressure? Mint’s analysis suggests that this could be one of those factors, suggesting that one-third of companies have changed their identities within five years of an initial public offering (IPO).
For example, Zomato’s name change came less than four years after the company went public.
MINT’s analysis also shows that name changes are not limited to immediate late IPO. About 7% of companies chose a new name between six and ten years after going public, while another 10% chose a new name between 11 and 15 years. The data suggest that even companies mature in the public market, brand development remains a relevant consideration for the company.
“At the end of the day, rebranding is an exercise, for other reasons, to remain relevant and known,” Jaishankar said. “Although it is an ostensible cosmetic remodel, it indicates the strategic shift below, involving months of preparation and approval from stakeholders. ”
Interestingly, identity shifts are not always a reaction to public listings. This may also be an active pre-listed strategy. The name of Swiggy is changed from Bundl Technologies Pvt. Swiggy Pvt Ltd Ltd, which was conducted before the IPO, reflects this trend.
But stock prices have traditionally responded positively to rebranding regardless of the company’s motivation. In 2024, after and after its name change, 30 companies’ stocks provided a median return.
Hill’s stock ended 0.83% on Thursday ₹1,825.00 on NSE, slower than the benchmark Nifty 50’s 1.24%.
However, experts point out that there is almost no correlation between the company’s reshaping and stock price changes. Research partner and PRESIGHTS HUB at PWC India, Raghav Manohar Narsalay said: “Usually, it is only if the investor has any value proposition, only if the investor has any value proposition.
