Tata Sons has increased the royalty fee to Rs 200 crore, doubling it from the previous Rs 100 crore, which operating companies like TCS, Tata Steel, and Tata Motors pay for using the “Tata” name. Introduced by Ratan Tata in 1996, the brand subscription scheme mandates a contribution of 0.25% of annual revenue or 5% of pre-tax profit, with indirect users paying 0.15% of revenue. In FY2023, Tata Sons earned Rs 1,008 crore in brand subscription income. Under N Chandrasekaran’s leadership, the upper limit was raised to Rs 200 crore, with the fee now based solely on annual revenue, signaling a substantial change in Tata Sons’ revenue strategy.
Tata Sons Doubles Royalty Fee for Using “Tata” Name, TCS Pays Rs 200 Crore
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