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Dentsu expects to grow at 50 pc

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Dentsu expects to grow at 50 pc

Dentsu India is expecting to grow at 50 per cent to record billings of Rs 300 crore this year.

For a well-balanced portfolio of clients in the country, the two-year-old agency hopes to get clients in severalcategories instead of focusing its business on its Japanese accounts in the country.

Mr Sandeep Goyal, Chairman, Dentsu India, told Business Line, "Our growth strategy is to get what is rightfully ours (Dentsu's Japanese clients and global businesses), chase whatever is on offer to everyone (participate in and win multi-agency pitches), attract clients who desire a market-oriented communications strategy and get noticed by big-ticket brands for the quality of our creatives and consumer focus." "Both the Dentsu agencies in India are doing pretty well. I don't want to over promise but I would be surprised if we don't have a 50 per cent growth in incomes this year."

Dentsu Marcom has just opened in Mumbai, and HDFC Standard Life, Park Avenue, Suzlon and Tata Corporate are its clients. Dentsu Communications launched its second office in Delhi towards the end of last year and Yamaha, Nomarks and i-mate are accounts there. Dentsu Communications is now based in Bangalore and is looking at setting up operations in Mumbai. Dentsu Marcom, now both in Delhi and Mumbai, is also planning to spread its operations to Dubai. Adds Mr Goyal, "Settling down our new Mumbai operations is the top priority right now. Dubai is the next frontier. We have had many offers for alliances and buyouts but unless we see tremendous value in an acquisition, I am not really keen to extend the Dentsu goodwill to businesses that we either do not control or businesses that will bring no value to our clients."

Dentsu operates in 27 countries and the group's services include media, event planning, market research and public relations. It also has large-scale printing, data processing and systems integration, music publishing, exhibition, film and other operations.

In India, however, the agency has no immediate plans of floating any new divisions. For instance, the agency has appointed agencies such as Torque (for PR), ESP (for events and promotions) and Infovision (for DM) to offer services to its clients.

Being a late entrant in India, Dentsu India believes that there are advantages in coming late into the country. "We are much slimmer in terms of numbers and are more technology-driven," claims Mr Goyal of his agency, which at present has 140 employees on its rolls. He further adds, "We have been a little late coming to India under our own banner. But the fact remains that Dentsu is an advertising super-power. And our aspirations for the Indian market obviously are to be one amongst the largest and most respected agencies in this geography. We have climbed in most Asian markets to dominant market leadership in recent years (Dentsu is top in China and Taiwan, and among the top three in Thailand, to name just a few), and I am hoping we will be able to replicate the success in India too." Dentsu Inc, the world's single largest agency brand with global billings of $18 billion, started its Indian operations from Bangalore in 2003. The Indian agency comprising Dentsu Communications and Dentsu Marcom Pvt Ltd, is a 74:26 joint venture between Dentsu Inc and Mr Sandeep Goyal, former Group CEO of Zee Telefilms Ltd, who was also president of Rediffusion DY&R some years ago.


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