Percept Holdings and Aegis Media have decided to part ways and restructure their India partnerships, Carat Media India, PDM India and Posterscope India. Under the agreement, Percept will have 100 per cent ownership of PDM India and Posterscope India with full management control. The name of Posterscope India will be changed once the proposed restructuring is completed. Aegis will have 100 per cent shareholding of Carat India with full management control. The media business on behalf of Percept Holdings will move back to Percept.
Percept and Aegis first came together to set up Carat Integra in July 2000 as Carat's second media services venture. Aegis owned 51 per cent of Carat Integra and managed the joint venture. In October 2003, Carat Integra was merged with Aegis Media's wholly-owned Carat Media, with Percept taking a 27 per cent shareholding in the merged company.
In 2002, Aegis acquired a 25.1 per cent shareholding in PDM India (erstwhile Percept D'Mark), Percept's sports, entertainment and sponsorship marketing company. In September 2004, Aegis acquired 51 per cent of Percept Out-of-Home from Percept. The company was renamed Posterscope India.
According to a press statement issued today, the restructuring plans are currently underway, subject to approvals including legal and regulatory.
Speaking on the development, Harindra Singh, Vice-Chairman and Managing Director, Percept Holdings, said, "We have had a satisfying and productive relationship with Aegis. It is now time for us to move on and pursue our own ambitions. We wish Aegis the best and look forward to cooperation in future."
Rob Myers, Director-Corporate Development, Aegis Group plc, said, "We have had a satisfying relationship with Percept and will continue to cooperate with them. India is one of the world's most exciting and rapidly growing markets, and we are now looking forward to the next phase of our strategic development here."
When contacted, Charles Berley Jenarius, Group CEO, Carat India, said, "While the separation will impact our revenues to the extent of 20-22 per cent, we will more than make up for the loss through our new business gains in 2006 amounting to over Rs 200 crore. Some of our notable client wins include Jyoti Laboratories, Electrolux, Reebok, Alchemist, Zicom, Luxottica (Rayban), Manipal Education & Medical Group to name a few."
Jenarius added that Aegis would continue to invest in India, offering its full suite of services through its global and regional brands Posterscope (OOH), Isobar (digital), deepblue (communication planning).