Omnicom’s big India move: buys 51 pc stake in Mudra

Omnicom Group is upping its stake in Anil Ambani-owned Mudra Communications to 51 per cent, which could even result in a complete takeover subsequently. With this, Omnicom would come closer to its key competitors in India, including WPP and Interpublic Group.

e4m by Noor Fathima Warsia
Published: Oct 31, 2011 1:27 PM  | 5 min read
Omnicom’s big India move: buys 51 pc stake in Mudra

Even though US-based holding company Omnicom Group and Anil Ambani-owned Mudra Communications have had on-and-off conversations for some time now, Omnicom Group is finally in the process of upping its stake in Mudra Communications. Omnicom would be taking a 51 per cent stake in Mudra, and it is understood that subsequently this could even result in a complete buyout.

So far, Omnicom has held a 10 per cent stake in Mudra Communications.

While official comments were not forthcoming from either Omnicom or Mudra Communications, sources informed that the deal was “as good as done”.

This is Omnicom’s biggest push in India after 2008, when it had launched OMD and BBDO in India and had bought out TBWA\India. Even though the financial details are not known, some industry observers see this as Omnicom’s single biggest investment in India so far.

Meanwhile, Omnicom also said that Anil Ambani, Chairman of Reliance Group, would join the Omnicom international advisory committee.

Bridging the Gap
This move would play a significant role in increasing Omnicom Group’s foothold in India. At present, even as Omnicom is a close rival to WPP internationally, in India, not only WPP but also the likes of the Interpublic Group (which has brands such as Lowe Lintas, McCann Worldgroup and DraftFCB Ulka in its creative offering and Lintas Media Group and Lodestar UM as its media assets) are far ahead of Omnicom.

Omnicom’s creative brands in India include BBDO India and TBWA\India. It has held a minority stake in DDB Mudra and RK Swamy BBDO. Its media asset is Omnicom Media Group that holds media agency OMD India. Omnicom also has presence in PR through Fleishman Hillard and Sampark Ketchum.

Contours of the deal are not clear yet, but sources informed that Omnicom’s Mudra buyout would apply to all Mudra Communications businesses in India. This includes four key business units – Mudra India (Branding & Communication), DDB Mudra (Influence & Behavioural Change), Mudra Max (Integrated Engagement & Experience) and Ignite Mudra (Partnerships for Entrepreneurs).

Mudra India has five strategic business units – Mudra West, Mudra South and Mudra North & East. It also has Water, a strategy & design specialist, and Maatra, a localisation & pre-media specialist. DDB Mudra comprises four strategic business units – DDB India, Tribal DDB India, RAPP India and DDB Health & Lifestyle. Mudra Max consists of 16 strategic business units that provide clients seamless solutions across a wide array of media touch points. Ignite Mudra, a specialist agency, caters to the brand building needs of entrepreneurs across geographies.

Mudra was founded in 1980 and Omnicom began its relation with the agency in 1990. Mudra today has over 1,100 employees across 26 offices and its footprint covers over 175,000 villages and 4,000 towns.

The Big Questions
The deal will have ramifications as it takes shape. The first question clearly is the impact that this deal would have on the existing Omnicom brands, especially the media agency brand. “Media part of the business allows synergies of volume, and there is no reason for Omnicom to not explore that option too,” said a media agency head.

At present, no changes are expected in the management of Mudra Communications due to this deal.

Another senior advertising agency professional noted, “Mudra has scale in India and Omnicom can consider it to be a centre for Omnicom’s India operations. Mudra has many capability sets that the other Omnicom agencies can benefit from, so they could look at taking that option as well.”

Omnicom’s Good Year
A senior industry source stated, “The writing was on the wall. Mudra has structured and expanded itself very aggressively in the last year. The growth of the agency in various domains, the rebranding done in 2010 and the focus on recruiting senior talent and growing individual businesses have all contributed to making Mudra an attractive agency network to associate with. Mudra’s performance on international award platforms too would have added to this.”

Omnicom Group has seen a positive third quarter, where its profits were up by 16.7 per cent to $203.7 million, compared to $174.6 million in the same period last year. Speaking to analysts at a conference earlier this month, Omnicom CEO John Wren was quoted on the statement that over 22 per cent of Omnicom’s revenue was currently coming from Asia, Latin America and developing markets, versus 18 per cent this time last year.

Mudra Communications was one of the few Indian agencies in a market completely dominated by multinational players such as WPP, Interpublic Group, Publicis Groupe, Havas, Aegis and Dentsu, amongst others.

According to the company website, Mudra Group clients include Aircel, Amrutanjan, Amway, Bank of Baroda, Bajaj Allianz Insurance, Castrol, Dabur, Disney, Emirates, Electrolux, Femina, Future Group, Godrej, HBO, Henkel, HP, HPCL, Hindustan Unilever, ITC, Jet Airways, Johnson & Johnson, Jyothy Laboratories, Kalpataru Real Estate, Larsen & Toubro, LIC, Lonely Planet, Madura Garments, Max New York Life, Novartis, Panasonic India, PepsiCo, Philips, Paras Pharmaceuticals, Reliance ADAG, Samsung India, Shell Foundation, Spice Mobile, TTK, The Economic Times, UNICEF, Uninor, Union Bank of India, United Spirits, Vaibhav Empire, Virgin India, Volkswagen and Wrigley.

 

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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