Omnicom gets more of Mudra, ups stake to 51%

Anil Ambani's Mudra Group will let American company Omnicom increase its stake to a majority 51%. While Mudra says this strategic partnership will take the agency forward, it signals the dwindling Indian ownership in the advertising business, reports CNBC-TV18's Animesh Das and Anuradha Sengupta.

Almost forgetting his words said seven years ago, at the golden jubilee celebrations of the Bombay Ad Club, where Anil Ambani gave the historical speech, asking the Indian ad world 'to set aside safety first instinct as the ad industry remained in bondage to international fashions, idioms and to Sir Martin Sorrell'; his agency today, that was started by the Reliance Group in 1980, is all set to be owned by the American communications behemoth Omnicom. Omnicom has had a miniscule stake in Mudra via its agency DDB since 1993 that will go up to a majority stake now. This deal has been nearly two years in the making. "All I can say is that Omnicom has upped its stake to basic majority. AA stays invested and growth in entire Indian market is still to be captured. But we can't comment on his plans," said Madhukar Kamath, managing director and CEO of Mudra Group.
.
The majority stake will give Omnicom the edge it has lacked in the Indian market that's dominated by WPP, IPG and Publicis. For now nothing changes for Mudra that employs over 1000 employees and has clients that range from Volkswagon, Johnson & Johnson and Philips to Big Bazaar, Bank of Baroda and Aircel. "Omnicom group & DDB respects the Mudra management and structure and growth plans, there are no changes at all in the leadership," Kamath added.