WPPs Grey to buy majority stake in Indian agency

Updated: Dec 19 2013, 10:08am hrs
WPP, the worlds largest advertising agency, on Wednesday announced its wholly owned operating company Grey, the advertising network of Grey Group, has agreed to acquire a majority stake in RC&M, one of Indias largest rural communications and marketing services providers, reports fe Bureau in Mumbai. Founded in 1990, RC&M is headquartered in Delhi, with offices in Mumbai and Bangalore. Its unaudited revenues for the year ending 31 March were about R36 crore. RC&M marks WPPs 12th acquisition in India in the last nine years.

According to a statement from WPP, this acquisition marks a further step in WPPs strategy of developing its networks in fast-growth markets and sectors. In India, WPP companies (including associates) generate revenues of US$500 million and employ almost 13,000 people. In the Asia Pacific region, WPP companies (including associates) generate revenues of US$5 billion and employ more than 47,000 people. WPP recently raised its targets from 35-40% for each of fast-growth markets and new media to at least 40-45% over the next five years.

RC&M employs more than 320 people and services clients in the automotive, industrial automation, FMCG and durable sectors. With a formidable reach across 400,000 Indian villages and 5,000 towns, the company is a leader in the organised rural/semi-urban activation market.