Publicis buys Capital Advertising
19 September 2007
The fourth largest global advertising group, Publicis Groupe, has acquired a majority stake in Indian advertising company, Capital Advertising. Capital Advertising, according to a press release on the Publicis website, is "the most important independent agency in the Indian capital Delhi, and one of the key independent advertising agencies in India". This is a move towards strengthening its position in the booming Indian economy.
According to Publicis, Capital will continue autonomous operations, albeit it will be aligned with the Asia operations of the Publicis Worldwide network. Capital Advertising''s founding directors, Sunil Sachdeva and Prasad Subramaniam, will report to Matthew Godfrey, CEO, Publicis Asia.
The acquisition is being viewed as a strategic reinforcement of the Publicis Groupe, in one of the most dynamic economies of the world, which also happens to be one of the fastest-growing advertising markets.
Publicis''s biggest brands and networks are already in place in India, including advertising networks Saatchi & Saatchi, Publicis and Leo Burnett; media networks ZenithOptimedia and Starcom, along with the recently created India Media Exchange. Additionally, it also has key marketing services agencies in the country.
In 2005, Publicis had acquired Solutions, an integrated marketing services agency in India. Cumulatively, Publicis presently has over 1,100 employees in India.
According to Olivier Fleurot, executive chairman, Publicis Worldwide, "India is a very important market for Publicis Worldwide. Not only does Capital Advertising allow us to increase our presence in this rapid-growth market, but it also strengthens our offer in the capital, which is the Indian advertising industry''s fastest growing zone, with a population of 14 million."