US giant Omnicom will buy Mudra

Anil Ambani Will Join Advertising Giant's Global Advisory Committee

New Delhi: The $12.5-billion Omnicom Group will acquire a majority stake in Anil Ambanicontrolled Mudra Group, one of the largest domestic advertising firms, to step up growth in India, where it has lagged behind global peers like Martin Sorrell's WPP. 

    The US advertising and communication services giant said it will have Reliance Group chairman Anil Ambani sit on its International Advisory Committee to gain from "his vast experience in the international business community". 
    Prior to this transaction, Reliance Group held 90% stake in Mudra and Omnicom's DDB Worldwide held 10% control which it bought way back in 1993. The American advertising behemoth, which runs agencies like BBDO and TBWA, will the option to increase its stake at a later stage under the deal. The value of the deal was not shared by Omnicom Group. Mudra through its various networks handles brands like Asian Paints, Aircel, Air India, Volkswagen, Philips among others. 
    "This acquisition is an important step in achieving Omnicom's strategy to extend and deepen our presence in rapidly growing markets. Mudra is widely acknowledged as an outstanding company with impressive creative product and expertise in a broad range of disciplines. Mudra's innovation and depth of talent will strengthen our business capabilities not only in India but around the world," said John Wren, president & CEO, Omnicom Group. The majority stake purchase in Mudra would help expand business activities into areas like public relations and retail capabilities, Wren added. 
    Talking to TOI, Madhukar Kamath, CEO, Mudra Group, said, "We have gained significant strength from the DDB network. This development will further cement our strategic partnership and create market dominance for Mudra." He added, "last year the group had outlined a vision for the year 2020 which will be pushed by having a perfect partner. We want to make this a decade of explosive growth for Mudra." Omnicom has been upping its profile in India in the past five years. In 2007, it started DDB Mudra, Tribal DDB, Rapp and DDB Health & Lifestyle after which it launched the group's global media agency OMD and creative agency BBDO India. 
    A Reliance Group spokesperson said: "We are delighted to extend our strategic partnership with Omnicom Group, strengthening ties that were established more than 20 years ago. Our chairman Anil Ambani is pleased to be joining the Omnicom International Advisory Committee, as part of thisenhanced relationship." 
    Mudra Group, with about 1,100 people and 26 offices, is spread across four agency networks — Mudra India, which is focused on branding and communication; DDB Mudra, which works on influence and behavioural change; Mudra Max, deal with integrated engagement and experience and Ignite Mudra which is focused on partnerships for entrepreneurs. 
    The global advertising behemoths are increasingly looking to size up a bigger chunk from the India market as the Western markets saturate. This year, Publicis Groupe CEO Maurice Levy told TOI, the French communications group is reviewing its India strategy with the aim of tripling the size of its business here.

Anil Ambani