Omnicom, arguably the strongest performer among the marcoms giants judging by its recent third quarter numbers, is making a big move in India by increasing its ten per cent stake in the Mudra conglomerate to a majority with an option to buy the rest.
Omnicom has lagged the field in India but Mudra is a substantial business spanning advertisng and much else besides. Omnicom CEO John Wren says: “It’s a complete transaction, including 26 offices and four or five operating companies across the subcontinent. This gives us a backbone to expand our other services including retail capabilities and public relations.”
Omnicom claims Mudra will make the US group one of the top three holding companies in India. The company has owned a ten per cent stake in Mudra since 1993 which includes ad agency DDB Mudra.
“Every western company of any importance is expanding into India, and India also has quite a number of important companies that are expanding outside of India,” says Wren. “It’s extraordinarily important that we become as strong in India as we are in the US.”
Omnicom, which owns agency networks BBDO, DDB and TBWA, reported robust third-quarter earnings earlier this month. International revenues increased 22 per cent to $1.68bn, nearly equalling US revenues of $1.7bn, which were up 5.3 per cent.