Industrialist Saroj K Poddar-led Poddar Heritage Group has finally kicked off its hospitality business with the induction of RMG David as its advertising and brand agency.
The agency has been appointed by Indigo Hospitality Pvt Ltd for developing its hospitality brand with an estimated budget of over Rs 20 crore.
As reported by FE (July 31), the Rs 1,000-crore Poddar Group floated a greenfield project called Indigo Hospitality to pursue its interest in the food retail business. The project is a brainchild of Mr SK Poddar’s son Akshay Poddar and is being headed by Neeraj Jain, former Movenpick Foods chief executive.
The company has now decided to open about five restaurants based on North Indian cuisine in the first year and will roll out its first outlet in the beginning of 2005.
According to Indigo Hospitality CEO Neeraj Jain, the company has retained RMG David to create a distinctive brand for its chain of restaurants and address brand communication and design issues. The company has earmarked an advertising budget of Rs 80 lakh on brand building, and Rs 30 lakh as advertising spend per restaurant. “Indigo plans to reinvent the hospitality business in India and we believe that RMG David with its challenger agency stance can help us in our endeavour to create new benchmarks in the business,” Mr Jain said.
The Poddar Heritage Group is largely known as the promoter of companies such as Gillette, Hettich, Singer, Rosenbluth International and Style Spa in India. RMG David is a WPP group company, the smallest worldwide agency and is managed by Ogilvy & Mather.
Prior to launching Indigo, Mr Jain was also part of the management involved in the roll-out of Java Green, Reliance Web World’s in house coffee boutiques.