McCann-Erickson Worldwide, the $10.2-billion advertising network spanning 17 countries, is increasing its equity stake in McCann-Erickson India from 51 per cent to 80 per cent. Erickson will buy out individual investors as well as shares of an investment company held privately to up its stake.
The proposal will be taken up by the Foreign Investment Promotion Board at its next meeting on February 26.
The move comes close on the heels of international majors like J Walter Thompson, Ogilvy & Mather, DMB&B and Leo Burnett increasing stake in their Indian operations.
The McCann move to raise stake in the Indian subsidiary is part of the global giants overall bid to beef up presence in India, following its acquisition in 1995 of the stake held by Tara Sinha, in what was then called Tara Sinha McCann-Erickson.
It comes close on the heels of the key appointment of Alyque Padamsee, former chief of Lintas India, as creative consultant on an exclusive basis. The appointment was formalised recently after an informal run by Padamsee for two months.
The induction of Padamsee was preceded by other creative lights such as Nalesh Patil, C Gangadharan, Clarinda DSouza and Millind Nabar moving to McCann-Erickson India.
As a result of McCann-Erickson Worldwides increased focus on India, the local subsidiary has rapidly moved up the billing charts from 18th a couple of years to ago to 10th at present. The agencys billings have gone up from Rs 27 crore in 1993-94 to Rs 145 crore in 1996-97 and is tipped to end 1997-98 with Rs 208 crore, registering a 60-70 per cent growth per annum over the past two years. Names like Johnson & Johnson, BPL, Motorola, Esso and Reckitt & Coleman form part of its client roster.
McCann-Erickson India has also decided to double investment in technology to $2 million in 1998. India is also included in the list of key Asian countries where the global parent plans to introduce group company and the worlds third largest on-line marketing agency, Thunderhouse On-line Marketing Communi-cations.
Sorab Mistry, McCann-Erickson India president and chief executive, said he wanted his agency to become the fourth major international player in the Indian advertising industry along with Hindustan Thompson, Lintas and O&M.
Ira S Carlin, media director of McCann-Erickson Worldwide, asserted that McCann will be at the top in India by the turn of the century. We want India to be our jewel in the crown of Asia-Pacific.
India is going to take the lead. There is a real dynamism in this emerging market. New ideas do not necessarily have to come from the US, but can as easily come from Mumbai or Beijing, he said.
