Leo Burnett May Up Stake In Local Company To 100%
Over the last four years, Leo Burnett has increased its stake from 26 per cent equity in Chaitra Leo Burnett in January 1996 to 51 per cent in February 1998. Last year, the company yet again raised stake in the Indian subsidiary to 74 per cent in June. Consequently, Chaitra Leo Burnett is now formally changing its name to Leo Burnett India.
Sharma said, "Currently the government allows only 74 per cent stake for advertising agencies, but soon Leo Burnett India may become a wholly owned subsidiary as that is what the parent wants."
Stephen Gatfield, regional managing director, Leo Burnett, Asia Pacific said, "The reason we had increased the stake and changed the name is to invest aggressively in India. We want to be an Indian agency focusing on ideas development and brand building -- thinking locally while matching every global standard."
The company's present billing for this year will be Rs 240 crore and is targeting billings of Rs 500 crore over the next three years. A significant part of this growth will come from new businesses like certain Leo Burnett's multinational clients like Philip Morris who are to add substantially to the agency's business.
Leo Burnett is also planning to take up additional Indian accounts by offering services in direct and database marketing, digital communications, sales promotion, sports and event marketing, brand consulting and healthcare marketing.
The Indian agency handles 8 of the 9 multinational clients of the parent that has operations in the country. Around 52 per cent of agency's revenues comes from multinationals clients in India.
Leo Burnett India's major clients are Coca Cola, Complan, Fiat, Bajaj Chetak, Procter & Gamble, Godrej GE and ICICI among others.