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NEW DELHI, Aug. 21

DESPITE being in the news for all the wrong reasons, the Tata group is confident that it is just a minor aberration, which would have no impact on its brand image and its reputation as being ethical and committed to good corporate governance.

According to Mr R. Gopalkrishnan, Executive Director, Tata Sons Ltd, the reputation and image of the group which is being "sullied deliberately by use of half truths and untruths" in the controversy surrounding Tata Finance Ltd will stand the test of time.

"The Tata brand is very large in value and is a respected name countrywide. The value of the Tata brand, today pegged at Rs 10,000 crore, represents assurance, reliability, a sense of nationalism, value for money, and such other attributes that have been built over several decades, irrespective of the product, whether it is a wrist watch, tea, salt, a piece of software or a car. Every large corporate has to go through these setback periods and this group is no exception. Even MNCs like Johnson & Johnson and Nestle had their setback years ago when everyone wrote them off. But they have bounced back, and so will the Tata group," he said.

Addressing a select group of newspersons, Mr Gopalkrishnan pointed out that it was the board of TFL that uncovered various lapses and violations by the erstwhile Managing Director and some of his key associates, and had pursued appropriate legal remedies. It had also taken action, including the termination of the services of those involved.

Despite knowing that the company's management had committed grave misdeeds, TFL, under the Tata management, had the moral courage to lay bare the facts, terminate the services of the entire senior management team, including the Managing Director, commission an independent investigation, and file civil and criminal cases regardless of the consequences. "Such pro-active actions make this case distinct and different, and these cannot be compared to corporate frauds committed in various parts of the world," he said.

He noted that despite the large-scale restructuring that has been taking place within the group over the past 10 years, it continued to retain its "brand equity". Tata is already a brand in India, but it would be consolidated further. At the same time, stress would be laid to build brands for a good number of items produced by various Tata companies.

He noted that there were two ways in which brand synergy would begin to emerge. The first is when a company advertises its products or services - it uses the Tata mark in all the advertisements. The second is when the group advertises - with frequency and consistency the message of the Tata brand is reiterated and reinforced in the minds of the consumer and other decision-makers.

The group had identified telecom as one of its major thrust areas in the future, and the same strategy would be adopted here too, Mr. Gopalkrishnan said.

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