Wednesday, February 21, 2001
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Ad agencies plunge into expansion drive 

Lalitha Srinivasan  
Mumbai : It's time for expansions in the Rs 8,500-crore Indian advertising industry. After bagging new business gains, leading ad agencies are busy charting out expansion plans to handle new clients and brands. To meet the evolving needs of its clients, some agencies are gearing up to launch new divisions.

For instance, Mudra Communications Ltd-which is now on an account-winning spree-plans to expand its operations to cope with new business gains. According to Mudra Communications chairman & managing director Mr AG Krishnamurthy, the agency also plans to restructure its operations within two weeks.

The Rs 523-crore agency has bagged a host of new accounts which include, Paras Pharma, Monsterindia.com, Tata Metaliks, Hotel Hindustan and Orient Fans (Twister & Supreme), among others. Recently, the agency became the AOR for Samsung and National Geographic Channel. Explains Mr Krishnamurthy: "These new businesses will net the agency annual billings of Rs 70 crore. A couple of senior people will join Mudra in the next 4-6 weeks, which requires some restructuring in roles and responsibilities. We have also strengthened our Interactive Division at Mumbai."

To meet the specific requirements of its clients, RK Swamy/BBDO Advertising Ltd plans to launch an independent wing in a bid to offer rural marketing and social marketing services. Recognising the growing importance of rural and social communications in today's world, the agency is planning to float the new wing, informs Mr Surojoy Banerjee, director & executive vice- president, RK Swamy BBDO.

Says Mr Banerjee: "Today marketing has gone beyond urban centres. To reach out to a wider audience, we will be launching these new initiatives. Mr S Narendra will be a part of this wing." In addition to this rural marketing initiative, the agency plans to launch a new division, "Proximity" which will look into all aspects of customer contact including interactive, direct, database, in-shop events and reward programmes.

In bid to handle new business, the agency plans to increase and update its infrastructure and resource base. The agency recently bagged the advertising accounts of Wipro Ltd, Transport Corporation of India, OTCEI, Zuari (cements & corporate) and Fujitsu (air conditioners).

Yet another leading advertising agency, Leo Burnett has also bagged quite a number of new accounts. According to Leo Burnett managing director Mr Arvind Sharma, the agency has won business to the tune of Rs 50 crore recently. The new clients include News TV FM, Birla Sun-Life Mutual Funds and Insurance, 3to6.com (film industry portal), among others.As part of its expansion plans, Leo Burnett is in the process of setting up Orchard Mumbai to handle its new accounts such as Godrej Soaps (Cinthol), Bajaj Sevashram and Hitachi air conditioners.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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