Brands
World’s top 50 luxury brands lose over $7 bn in value this year: Report
Mumbai: The total value of the world’s top 50 most valuable luxury and premium brands has declined by five per cent year-on-year, according to the Brand Finance Luxury & Premium 50 2021 report. As the world grapples with the fallout from the Covid-19 pandemic, these brands witnessed a downturn from $227.1 billion in 2020 to $219.5 billion in 2021, it said.
Apparel brands dominated the ranking, with 30 brands featuring and accounting for 62 per cent of total brand value, but brand values suffered, nevertheless, due to Covid-19. German auto giant Porsche retained the top spot with a brand value of $34.3 billion, considerably ahead of second-ranked Gucci (brand value down 12 per cent).
French leather luxury goods brand Celine bucked the trend to emerge as the fastest growing brand, up by an impressive 118 per cent, according to the report. Despite the pandemic’s impact on travel and tourism industry, two hotels managed to check into the ranking for the first time, with Shangri-La in 29th and Intercontinental in 35th position in the report.
American luxury design house Coach, specialising in handbags, luggage, accessories, and ready-to-wear has recorded the biggest drop in brand value this year in the apparel subsector, falling 31 per cent to $4.7 billion. While performances across the board have been impacted by the pandemic, with the majority of brands recording a brand value loss this year, the brand’s sales and profits have taken a hit over the previous year. Coach’s parent company, Tapestry, has however, cited that forecasts across its brands are looking more positive than anticipated thanks to triple-digit e-commerce growth and a strong rebound across the Chinese market.
In addition to measuring the overall brand value, the report also evaluates the relative strength of brands, based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation. According to these criteria, Ferrari (up 2 per cent to $9.2 billion) is the world’s strongest luxury & premium brand – and the second strongest brand in the world. The auto-maker reacted proactively to the pandemic, initially shutting down production and then reopening with a focus on creating a safe working environment. This both minimised disruption and reinforced the brand’s reputation as a high-quality and responsible firm, as per the report.
Sitting behind Ferrari as the second strongest luxury & premium brand is Rolex, up by one per cent to $7.9 billion. Despite the challenges of the last year, the market for luxury watches has shown remarkable resilience to the pandemic turmoil, with demand remaining stable, demonstrated by Rolex’s website traffic experiencing a surge over the previous year.
“As predicted, the Covid-19 pandemic has damaged brand values across the luxury & premium sector with the total brand value of the world’s top 50 most valuable down five per cent year-on-year,” says Brand Finance valuation director Alex Haigh.
It is not all doom and gloom though, he notes, adding that the pandemic can be used as a catalyst for change across the industry, through growing e-commerce channels or through brands’ responses to the increased consumer demand for social and sustainable action.
German automaker Porsche, for instance, is striving towards pushing the boundaries and redefining the future of the sportscar. As part of the brand’s ‘Strategy 2025’, the auto giant aims to maintain the traditional aspects that the brand is known for, as well as undertaking the shift towards sustainability through the launch of the Taycan. Porsche celebrated strong sales of the Taycan, which totalled over 20,000 units sold last year, despite a six-week pause in production due to the pandemic. This impressive result means that over 10 per cent of Porsche’s sales are now from its EV models.
As holidays are cancelled and people are instructed to work from home, the hospitality industry has reached an almost complete standstill both from tourism, as well as corporate travel and hotel brand values, have suffered as a result. Home to five-star luxury properties with elite postcodes and addresses across the Middle East, Asia, North America, and Europe, Shangri-La – despite the challenges – is the highest-ranked hotel brand in 29th position. The hotel recorded an encouraging recovery across mainland China over the last year with demand being supported by an uptick in domestic leisure travel.
Brands
Sun Pharma to acquire Organon in $11.75 billion deal at $14 per share
Acquisition to create $12.4 billion pharma giant with global scale and biosimilars push
MUMBAI: Sun Pharmaceutical Industries Limited has signed a definitive agreement to acquire Organon & Co. in an all-cash deal valued at $11.75 billion, marking one of the largest cross-border pharma acquisitions by an Indian firm.
Under the terms of the agreement, Organon shareholders will receive $14.00 per share in cash, with Sun Pharma set to acquire 100 per cent of the company’s outstanding shares. The transaction, approved by the boards of both companies, is expected to close in early 2027, subject to regulatory approvals and shareholder consent.
The deal significantly expands Sun Pharma’s global footprint and strengthens its position across women’s health, biosimilars, and branded generics. The combined entity is projected to generate revenues of around $12.4 billion, placing it among the top 25 pharmaceutical companies globally.
Organon, which was spun off from Merck in 2021, brings a portfolio of over 70 products spanning women’s health and general medicines, with operations across more than 140 countries. Its established presence in key markets such as the US, Europe, and China complements Sun Pharma’s existing strengths and growth ambitions.
Sun Pharmaceutical Industries Limited executive chairman Dilip Shanghvi said, “This transaction represents a significant opportunity for Sun Pharma to build on its vision of reaching people and touching lives. Organon’s portfolio, capabilities and global reach are highly complementary to our own.”
Sun Pharmaceutical Industries Limited managing director Kirti Ganorkar added, “This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products.”
From Organon’s side, Organon & Co. executive chair Carrie Cox noted, “This all-cash transaction offers compelling and immediate value to Organon stockholders, while positioning the business for continued growth under Sun Pharma.”
Strategically, the acquisition gives Sun Pharma entry into the global biosimilars space as a top 10 player and strengthens its innovative medicines portfolio, which is expected to contribute around 27 per cent of combined revenues. The deal is also expected to nearly double EBITDA and cash flow, supporting long-term deleveraging and investment capacity.
Sun Pharma plans to fund the acquisition through a mix of internal accruals and committed financing from global banks, while maintaining focus on disciplined integration and operational continuity post-merger.
If completed as planned, the deal signals a clear shift in India’s pharmaceutical ambitions, from scale at home to leadership on the global stage, with Sun Pharma positioning itself as a more diversified and innovation-led healthcare powerhouse.
