ADAG goes for corporate image makeover, ropes in Bachchan

Bachchan, a close friend of group chairman, Anil Ambani, is arguably the biggest brand ambassador in India endorsing a slew of lifestyle products.

According to sources, the group has allocated approximately Rs. 150 crore for the corporate advertisement film, with the theme line, 'Think bigger; Think better', in televisions and other media outlets.

The corporate makeover initiative, announced May 28, is expected to incur a cost of about Rs. 700 crore this fiscal alone in the advertisements, perhaps the largest budget by any corporate entity in India.

According to Anil Ambani, the corporate makeover presents the group with the opportunity "to get closer to our new identity, to reflect on the philosophy behind it, and to celebrate the spirit of teamwork that lies at the heart of it."

"While embarking on this truly momentous journey, I look forward to working with each one of you - as we give life, body and soul to our new identity, our new vision - together," Ambani said in a webcast.

"Our new corporate colours blue and red convey values of integrity, confidence, energy and passion... Reliance Apex, is an embodiment of hope, optimism and success," Ambani said, adding, "The change is not just about our physical environment, it is not just about technology... this change goes deep within - it is a change in attitude, in mindset, in belief, in dreams, hopes and expectations."

Listing the strengths of the group that has a market cap of about Rs. 1,00,000 crore with an asset base of over Rs. 31,500 crore and net worth of Rs. 27,000 crore, he added, "We have over 50 million customers, the largest for any group in India (and) over eight million shareholders, perhaps the largest for any group in the world."

The new identity for the 'third largest group in India' came in less than a year of ownership settlement in Reliance empire between Anil and elder brother Mukesh on June 18, 2005 through an intervention by mother, Kokilaben.

According to industry analysts, Anil Ambani went for the image makeover as he wanted a brand identity for his group, which would be customer-friendly, have a more youthful look and also which could relate more to people at the retail level. This, despite the fact that under the demerger agreement between the Ambani brothers, both sides can use the existing Reliance logo.

Months of planning had gone behind the makeover, said an insider, with the group setting up a "brand council" consisting of marketing and brand professionals from various group companies as well as some senior executives of the group who have spearheaded the new brand identity.

The Ambani group had also hired the US-based brand strategy outfit, Prophet, with renowned brand guru David Aaker offering critical advice. And at the downstream level, it also hooked up with UK design house Landor (which also designed the "Indian" brand logo for Indian Airlines) to execute the design for the new symbol - 'Reliance Apex.'

So what necessitated the great brand identity makeover? After all, Reliance has been a solid brand, time-tested through the last three decades and has become a household name. The answer lies in the changing nature of ADAG's businesses.

After the split, the Anil Ambani group now straddles businesses that are clearly focused on the customer and more at the retail level - mobile phones, power, financial services and insurance.

The existing brand identity and logo was a powerful corporate brand conceived in a business scenario where the undivided group was largely into B2B businesses such as oil and gas and petrochemicals.

But with the group split, it was felt that the nature of ADAG's businesses demanded a more customer-friendly approach.

"The research clearly showed that we needed a brand identity which addresses the customer more closely than the existing brand offerings. The new brand identity had to be more youthful, approachable and emotive," said Yogendra Vashisht, head of branding, Reliance Energy and a key member of the brand council.

"We realized that we needed to create a monolithic brand identity, which would synergise all the group companies together. The message is that you can get a range of services and you need not go to anyone else for them," added Ajay Kakar, also head of branding in Reliance Capital and a member of the brand council.

But, some industry analysts feel that perhaps the main reason for rebranding is Anil Ambani's attempt to emerge from the shadows of his elder brother, Mukesh Ambani, and to put an end to the confusion in the minds of the people who, after the Reliance split, were perhaps left wondering which company belonged to which of the Ambani brothers.

Whatever the reasons, the jury is still out on one of the most ambitious brand identity makeovers. And its success will depend not just on the external manifestation, but also its very ethos: importantly, on how quickly Anil Ambani and his team can make an organizational transformation from a traditionally manufacturing and commodity giant to a customer-friendly and services-focused conglomerate.