The boards of Tata Steel, Telco, Tata Tea, Tata Chemicals and the three constituents of the Tata Electric Companies--the "first-rung companies"--have all cleared the proposal. Only Indian Hotels, which also figures among the top-rung companies, is yet to follow suit.

The scheme will be accompanied by a simultaneous launch of Tata's new logo, which is in the final stages of getting registered as a trademark. After its domestic launch, the Tatas will seek international registration of the logo.

At present, legal advisors to the Tatas are "purifying" the logo, that is, determining whether a similar logo has already been registered.

The subscription to the brand-equity scheme is based on a company's net earnings in the last three fiscal years and depending on its "degree of association" with the group.

The contribution oflower-rung companies will be lesser than the top-rung ones, with loss-making companies being exempt from subscription.

Companies belonging to the two lower rungs are expected to ratify similar proposals in their future board meetings, and the entire process is expected to be complete by early next year.

It is learnt that group companies which adopt the new logo will have to forego their existing logos. This means that if Telco, for example, chooses to use the new logo, it will not use its popular logo - the one which the company is identified with and has developed over the last few decades.

However, not all Tata group companies will get to use the new Tata logo. Usage will depend on whether a particular group company adheres to a "code of conduct" set aside for the purpose, based on quality standards, ethics, which will be decided by the board of Tata Sons, the owner of the new logo.

The launch of the scheme could, however, get delayed if the process of purification and registration of the new logogets unduly prolonged. The scheme, in its new avatar, had been earlier planned for early-1998 and hence is likely to be delayed by about a year.

Tata Sons, the main holding company for the group, had first proposed a brand equity fund and a new logo in 1996, after a much-criticised rights issue. The proceeds from the issue was used to bolster holdings in different group companies.

A similar perception was created about the brand-equity scheme too, and the Tatas were forced to defer the scheme. The Tatas are now believed to have incorporated a whole set of changes to the earlier scheme, and have clarified that the funds raised will be used only to strengthen the group identity.