JWT extends reach, acquires stake in Hyderabad ad firm

Global advertising net- work JWT, part of WPP Plc, has acquired a majority stake in Hyderabad- based Mindset Advertising Pvt. Ltd, extending its reach to Andhra Pradesh and seeking to better service clients in the southern state.

The company didn't say how much it paid for the stake.

“Hyderabad figures as one of the most promising cities in JWT's growth plans and the integration of Mindset into our global operations gives clients in the city access to the best of what JWT has to offer world- wide,“ said Colvyn Harris, chief executive of JWT India.
“It also gives them access to the services of our family of specialist companies in various communications-related fields, including media planning and buying, digital communications, activation, public relations and market research”.

The acquisition comes amid an agitation in Andhra Pradesh over the creation of a separate Telangana state. The eventual status of Hyderabad isn't clear yet.

JWT India has been associated with Mindset Advertising on several campaigns, including that of Bharti Airtel Ltd, Harris said. Buying the stake was a natural extension, he added.

JWT India is open to acquisitions in the specialized communications space--digital, design, etc. “We are open to whatever will enhance our cur- rent offering. We had acquired Encompass earlier”, he said.

WPP bought a majority stake in Encompass Events Pvt. Ltd, an events company founded by television personality Roshan Abbas, in 2008. Encompass was later aligned with JWT India.

Santha John, the founder of Mindset Advertising, will head the JWT Hyderabad operations. Its clients include information technology, education, healthcare and infrastructure companies.

“We have been reputed to be `the best advertising brains in Hyderabad, under one roof' and that, of course, will continue with our leadership team of Ram Gedela, chief executive officer, Anvar Alikhan, director, creative, and Mark Samuel, assistant vice-president and senior creative director, firmly in place,“ John said.

The JWT Hyderabad team will comprise 44 people and offer creative services, strategic planning and execution in digital, print and television.
Key clients include Bharti Airtel and PepsiCo India.

Arvind Sharma, chairman, Leo Burnett India Pvt. Ltd, commended the acquisition in terms of the people JWT India has taken on, but said there was a question mark on the potential of Hyderabad as a market.

Jude Fernandes, chief executive officer, Mudra India, part of the Mudra Group, said it hadn't seen any compelling reason to set up shop in Hyderabad or Andhra Pradesh.

“Having said that, JWT's decision is probably driven by the fact that the market is important for one of their big clients,” he said. “Andhra Pradesh is an important market for sectors such as consumer products and telecom. So, if the agency has a demanding client who wants feet on the street, it makes sense for JWT to buy a stake in a local agency which knows the market really well. Beyond this, the acquisition would have been cheap for JWT, so in that sense they really are killing two birds with one stone”.

Shiv Sethuraman, chief executive of TBWA\India Group, said an agency of JWT's size needed fresh avenues to grow --either through the introduction of new disciplines or new geographies.

“While Hyderabad has never really lived up to its potential as being a centre of commerce, the acquisition will give JWT access to some sizeable indigenous IT and education sector clients”.

(Source-: mintlive)