WPP to set up another subsidiary

Holland-based advertising firm Russel Square Holding and leading Japanese advertising agency Asatusu-DK Inc (ADK) will set up a 50:50 joint venture ad agency in India soon. Both these international agencies are affiliated to WPP Worldwide — the largest advertising and communications group promoted by Martin Sorell.

This will be the ninth direct joint venture firm of the WPP group in India that otherwise owns a majority share of the Rs 22,000-crore advertising business in the country. Some of the known agencies of WPP in the country include JWT, Ogilvy & Mather, Bates India Rediffusion DY & R, among others.

The Foreign Investment Promotion Board (FIPB) has now given its nod to a proposal sent by Russel Square Holding. The joint venture will require an inflow of Rs 80 lakh for setting up the company, the proposal said. As per the current foreign investment norms, up to 100 per cent FDI is allowed in the advertising sector under the autonomous route.

The proposal was sent to FIPB in June. However, both the Ministry of Information and Broadcasting and the Department of Revenue had sought additional time to examine the proposal. Russel Square Holding was told to produce no-objection certificates from the eight joint venture firms of WPP group in India, which it submitted accordingly.