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Mudra wants a larger share in OMD pie

24-October-2002
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Mudra wants a larger share in OMD pie

Optimum Media Direction (OMD) is in the process of fine-tuning its entry into India as a media independent. According to industry sources, OMD has offered a 25% equity share to each the three Omnicom group agencies in India - DDB Mudra, RK Swamy BBDO and TBWA Anthem. The remaining 25% equity, according to the proposed plan would remain with OMD.

However, Mudra, the largest of the three group agencies has asked Omnicom to have a relook at the equity pattern. However, as Mudra would be bringing a larger share to the kitty, it is in discussions with OMD for a larger equity share in the new entry. Explains R Laxmi Narayan, Executive Director, Mudra, "In Indian context, Mudra's size is much larger than the other Omnicom agencies. We feel that it would be only fair if it is reflected in equity. And hence, we have asked them to consider a larger share of equity for Mudra."

When asked if RK Swamy BBDO and TBWA Anthem will not object to Mudra having a larger equity share in the new entity, said Laxmi Narayan, "Indication has come more from OMD - and not from the Indian counterparts. Let me make it clear that we are a part of Omnicom network, and we are very keen to be a part of OMD's India plans as well. However, unlike many other countries, there is quite a difference in the size of the three agencies. And we are looking for an amicable outcome of the discussions."

According to industry estimates Mudra's capitalized billings are to the tune of Rs 715 crore, RK Swamy 300 crore and TBWA 120 crore. However, if we look at equity stake of the group, Omnicom group has a majority stake in RK Swamy (50.1%) and TBWA Anthem (51%). It right now has a 10% stake in Mudra. However, the agency is in talks with DDB to increase its equity considerably. According to Laxmi Narayan, "Talks are definitely on for increase in DDB's stake. To what extent, is yet to be decided".

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