Top Story

e4m_logo.png

Home >> Advertising >> Article

Dentsu buys Mogae’s stake in India ops; Sandeep Goyal resigns as Chairman

31-January-2011
Font Size   16
Share
Dentsu buys Mogae’s stake in India ops; Sandeep Goyal resigns as Chairman

Dentsu Inc has purchased the respective 26 per cent equity stakes held by Mogae Consultants Pvt Ltd in Dentsu Communications Pvt Ltd, Dentsu Marcom Pvt Ltd and Dentsu Creative Impact Pvt Ltd, three full-service advertising agencies established as joint ventures between Dentsu and Mogae. This announcement was made by Tatsuyoshi Takashima, President & CEO, Dentsu Inc on January 31, 2011.

As part of a strategy to grow the Dentsu brand in India, the three companies, together with other companies under the Dentsu Communications umbrella that includes Dentsu Mediatech and Clickstreamers, were integrated into an organisation referred to as the Dentsu India Group.

In accordance with the terms of the transaction, Sandeep Goyal, the incumbent Chairman of the Dentsu India Group, will resign from his position. He will also resign from the boards of the three advertising agencies. Goyal will, however, continue to support the Dentsu India Group as its Founder Chairman. Tanya Goyal will also resign from the boards of directors and will become a Principal Advisor to the Dentsu India Group.

Since the establishment of Dentsu Communications and Dentsu Marcom in 2003, and Dentsu Creative Impact in 2005, Dentsu has been steadily expanding its business in India through the three agencies. In view of the growing importance of the Indian market, however, and faced with the need to provide an increasingly higher level of unique services to its global clients, Dentsu decided that the time had come to make the joint venture companies into wholly-owned subsidiaries. With this move, Dentsu will be able to positively expand its business domain from advertising to other areas such as sports and digital-related services.

According to the December 2010 edition of Advertising Expenditure Forecasts published by ZenithOptimedia, India’s advertising market, which grew slightly in 2009 to $4,463 million, is expected to grow 13 per cent in 2010 and 13-15 per cent in 2011-13, year-on-year. The total projected market size of $7,548 million in 2013, an increase of 69 per cent when compared to the 2009 figure, will make India one of the world’s leading advertising markets.

Yuzuru Kato, the Dentsu Inc Executive Officer in charge of global business development, said, “By making these three companies wholly-owned Dentsu subsidiaries in the rapidly developing and increasingly important Indian market, we aim to enhance our infrastructure to provide the best integrated solutions to our clients in all the business domains. Focusing on the area of communications, we will implement marketing communication strategies that solve the management and business issues facing advertisers and media content companies today. Ideas that reach beyond the imaginable. Technology that crosses the bounds of possibilities. Entrepreneurship that surpasses the expected. We will use these three sources of strength stated in the Dentsu Group Corporate Philosophy to create innovation.”

 

In this week's chillout, Gupta shares her weekend routine that not only helps her deal with the high stress of corporate life but also allows her to create some cherished memories. Read on…

NP Singh, CEO of Sony Pictures Networks India, talks of SPN’s growth drivers, pay wall for content, sharing IP and more…

The future of the industry will be 1:1 advertising as traditional channels, like television, become more addressable: Bryan Kennedy, Epsilon

The Founder of Pocket Aces shared his insights on how the consumption of content has evolved and how digital media is growing as the preferred medium of entertainment.

Nikhil Kumar will report to Paritosh Srivastava, COO, Publicis India

On the back of resounding success of its maiden work for Motilal Oswal, Mullen Lintas has introduced a sequel in different settings; again, reinforcing the image of Motilal Oswal as ‘Experts in Equity...

Sony Ten 1 took over Star Sports 1 Hindi to lead the sports genre with three of its properties making it to the Top 5 Programs for BARC Week 46