AV Birla Hires Leo Burnett For Cement Rebranding

Mumbai, Sept 22: | Updated: Sep 23 2003, 05:30am hrs
Soon after acquiring Larsen & Toubros (L&T) cement business, Aditya Birla Group company Grasim Industries is chalking out a major rebranding strategy for its cement business. The company has, for the first time, hired an advertising agency Leo Burnett India for rebranding of its cement business, confirmed key industry sources.

While the AV Birla group spokesperson was not available for comments, sources said the group had invited leading advertising agencies for a pitch.

Industry analysts see this move as a forerunner to a major rebranding exercise after the Group acquired L&Ts cement business. As branding plays a vital role in a business like cement, the group has hired the services of a reputed agency for creative outputs, commented an analyst.

The AV Birla Group company acquired L&Ts 16.5 million tonne cement business in a mega Rs 2,200 crore deal, taking the combined cement capacity to 29 million tonne.

Grasim has already repositioned its portfolio of cement brands under the Aditya Birla Group logo. To leverage its brand equity, Birla Plus, Birla Super and Birla Ready Mix have been identified as national brands. The move was mainly to differentiate between its own umbrella brands and those belonging to other Birla clan, such as CK Birla. Till now, Grasim worked with smaller ad agencies for creating ad campaigns for its cement brand.

L&T has a stronger presence in western and eastern India, and in the south, the two have complementary presence with Grasim being the third largest in the region. Grasim has a strong presence in markets of central India and Rajasthan.

Close on the heels of bagging the coveted ad account of Indian Oil Corporation, Leo Burnett has won this new account amidst stiff competition. With capitalised billings of Rs 500 crore, Leo Burnetts other clients include Babja Auto, Fiat (Palio automobiles), Heinz, Procter & Gamble, ICICI Bank, among others.