The Rs 140-crore advertising agency, Bates India, is acquiring a 25 per cent stake in the Rs 15-crore Delhi-based promotions company, Kidstuff Promos & Events for an undisclosed amount. Bates, which acquired a 100 per cent stake in Clarion last year, is looking to launch its international direct marketing and promotions brand 141.
Advertising industry sources say that talks between Bates India and Kidstuff have reached the final stage of negotiations, though the two players have yet to sign on the dotted line.
Kidstuff Promos & Events, launched in 1999, has an impressive list of direct marketing clients such as Hindustan Lever Ltd., Johnson & Johnson, Philips India, Cartoon Network etc.
However, in the recent past, Kidstuff has worked on several Bates’ clients such as Dabur India for Vatika hair oil and ITC for its cigarette brands and Sunflower oil.
Despite the 25 per cent stake by Bates, Kidstuff will continue to work independently on its own clients. However, the minority stake will allow Bates to use the agency’s expertise and operational network.