The Rs 30-crore Philips consumer electronics advertising business in India has gone to Hindustan Thompson Associates (HTA) instead of Mudra Communications, as was expected.
Exchange4media on July 11, 2001 (HTA, Contract salary freeze..) had mentioned that HTA has gained a major consumer electronics company.
Nearly six months back when Euro RSCG lost the Philips business to DDB Needham globally, the account was tipped to align with Mudra in India, the agency where Needham has a small 10 per cent stake.
Mudra set up a second agency, Infinity, to handle Philips, so that it did not clash with its existing consumer electronics client Samsung India.
Advertising industry sources suggest that it may have been difficult for Mudra to convince Samsung, which is a whopping Rs 70 crore business for the agency, to let it work on Philips without fear of loss of commitment. Mudra has been working with Samsung ever since its launch in 1995.
Philips has confirmed the news of finalising the agency but has not officially announced it, as some legal formalities are yet to be fulfilled.
Besides HTA, at least three other agencies, namely, Lowe Lintas & Partners, Rediffusion DY&R and Ogilvy & Mather, were also in the running for Philips' communications business.