MxMIndia

Tag: Ajit Balakrishnan

  • Diwan Arun Nanda will stay on as Chairman. Goyal will be MD

    Finally done. Sandeep Goyal buys Rediffusion

     

    By Our Staff

     

    Two years back, on May 27, 2019, to be precise, MxMIndia carried a speculative story titled ‘Is Sandeep Goyal buying into Rediffusion?’.

     

    When the media publishes speculative stuff, in all likelihood the deal is done. It’s only not official. So when a veteran adperson alerted us of the news on Saturday evening, our instant response was: Okay, we’ve heard that before.

     

    The morning after, given the mad rush to arrange an oxygen cylinder for a friend and the election results thereafter, we just parked the news to be tackled in the evening. And then we read the news on a couple of other websites.

     

    And in the evening, we had this official press release coming in.

     

    Let’s read what we’ve received, and then interpret it.

     

    Diwan Arun Nanda and Ajit Balakrishnan, the founders of Rediffusion have decided to step back from the day-to-day management of the 48-years-old ad agency. However, Diwan Arun Nanda shall continue to mentor the agency and will stay on as Chairman. Ajit also will step back from all day-to-day operations here but focus his attention on Rediff.com, the technology world and public service and will be always available to Rediffusion for any guidance it may need going forward.

    Sandeep Goyal, a past President of Rediffusion (1997-2001) will come back as Managing Director.

    Rediffusion is even today, India’s largest independent full service ad agency and was set up in July, 1973. Over the years the agency has created some of India’s most iconic and memorable advertising for brands like Jenson & Nicholson, Eveready, Parle, Garden Vareli, Godfrey Phillips, Tata Tea, Lakmé, Telco (Tata Motors), Colgate Palmolive, Citibank, Maruti Suzuki and many others. Rediffusion also launched brand Airtel in 1995. The agency currently works with Tata Sons, Parle, Tata Trusts, Tata Motors, State Bank of India, Liebherr, Larsen & Toubro, Brookfield, PGIM, Orra, Eveready, Deys Medical, Sulekha, Danone, Sun Pharma, Dr. Reddys, Audi India and many more.

    Said Diwan Arun Nanda, Chairman, Rediffusion: “Rediffusion has been known over the years for advertising that became famous and part of the language and the culture of the people, and helped brands build long term, and lasting equity with consumers. Whenever you see colour, think of us for Jenson & Nicholson was a path breaking campaign. So was Hum Red & White peene walon ki baat hi kuchh aur hai for Red & White cigarettes, Annu taazgi de de for Tata Tea, Gimme Red! for Eveready and the recent Isko laga dala, toh life jhingalala for Tata Sky. Rediffusion was also responsible for creating the cult ad film featuring AR Rahman, with the very memorable Airtel brand tune that has had the highest number of downloads in history.”

     

    Is Goyal Generation Next? Well, he is in his late 50s and Nanda and Balakrishnan in their late to mid-70s. Not exactly the next generation, in the way it’s made out to be. But what industrywatchers (and more importantly, Goyal-watchers) tell us is that Goyal will usher in huge energies to Rediffusion as well as the creative agency business. There is no word on Goyal’s daughter Carol assuming a role in agency, but then these are early days.

     

    While the press release received doesn’t indicate how much of stake has been sold, as per the grapevine, Goyal will be 100% owner of Rediffusion. People in the investment circuit, indicate that the valuation which Nanda and Balakrishnan would’ve got for the twin agencies of Rediff and Everest would be in the region of Rs 20-30 crore, a dramatic fall from the Rs 100 crore that was rumoured to be offered by WPP, and twice that by Havas a few years back.

     

    The agency’s books are in good shape, as of now, with costs haven’t shaved off in a big way. There are a few clients who are loyal, and given Goyal’s deep connects in the industry (if the turnout at his book releases are any indicator), we could see some fireworks all over.

  • Both WPP & Rediff appear to be happy to work without each other

    Will Rediff resurrect itself post WPP, Dentsu exit?

    By A Correspondent

     

    Before you say we are being too harsh, because you resurrect only those who are dead, well, you know we don’t mean that. But, yes, the agency has been pretty down in the dumps, and as one insider told us, that few in the younger set of CMOs takes the agency too seriously.

     

    And this for an agency that has done some stellar work. Created Brand Airtel for instance. Has done some awesome work for various clients, over the years.

     

    Rediff’s rise and rise also saw its downfall. Perhaps a wrong choice of captains, perhaps a tough jv with WPP with the then CEO Martin Sorrell making life tough for Rediff co-founder and bossman Arun Nanda by reportedly pulling out key clients. In the recent past, the agency’s cash registers were ringing thanks to the prized contract with the Tatas to handle the group’s PR activities. But it lost that business too earlier this year.

     

    So as MxM reported on May 22 (http://www.mxmindia.com/2018/05/is-arun-nanda-buying-wpp-stake-in-rediffusion/), Rediffusion has exited the WPP-owned Y&R and Dentsu partnerships and has chosen to go independent again. Our sources tell us the money paid to WPP was peanuts (less than Rs 5 crore) and both left the room with a Phew!.

     

    Nanda is happy to go independent all over again, and WPP country manager CVL Srinivas delighted that he can bring in Y&R solo to Indian shores.

     

    Rediff founders Arun Nanda and Ajit Balakrishan have bought back the 40% shares held in their company by Y&R (26.7%) and Dentsu (13.3%).

     

    In a joint statement, Nanda and Balakrishnan said: “Forty-five years back, we started Rediffusion with the vision of creating a passionate and bold agency that would take ownership of its clients and their work; with the promise of creating dynamic, fearless and category-busting work. As communication is undergoing a revolution in this hyper-connected and technology-oriented world, it’s time Rediffusion rode this new wave with a new freedom, zeal and passion. We believe we will be able to deploy a variety of digital tools and creative styles more swiftly, if Rediffusion is on its own.“

     

    The communications group will now comprise Rediffusion, Rediffusion Direct, Everest Brand Solutions, Rediffusion Healthcare Communications and Rediff.com.

     

    In a release, WPP said its companies Sudler, Wunderman and Y&R, which operated as joint venture agencies with Rediffusion, will be developed as wholly-owned agencies, with WPP selling its stakes in the current Rediffusion joint ventures. There will be no change to Wunderman’s existing India businesses.

     

    Said Srinivas: “India is a key growth region for us and we have a well-defined road map and vision for what we would like to achieve here. WPP is home to some of the best marketing talent in this country and our plan is to steer our agencies to stay ahead of the curve – in terms of both market and client needs, by providing the best-in-class offerings.”

     

    Rediffusion’s recent wins include SBI, Tata 150 years mandate, Liebherr & Tata Trusts. The agency also continues to handle Tata Sons, Tata Motors, Parle, TVS Tyres, Taj, L&T Realty, Godfrey Philips, Eveready, HPCL, Audi, GSK, Danone, Sun Pharma, to name a few.

     

    The agency has had a change of guard in the recent past. As reported by MxMIndia (http://www.mxmindia.com/2018/06/rahul-jauhari-navonil-chatterjee-to-take-charge-at-rediffusion-yr-everest-as-dhunji-wadia-to-retire-in-august/ ), Rahul Jauhari and Navonil Chatterjee have taken charge as Joint Presidents. Dhunji Wadia who was to retire as President of the group this month, left last month, in an exit that was reportedly not very amicable.

     

    Lastly, will Y&R enter India? We aren’t a hundred percent sure yet, but don’t be surprised if it does in a hurry. For now, the list of its Asia offices doesn’t include India: https://www.yr.com/locations#asia. But we are told it will be back soon.

     

    As for Rediff, Nanda and Balakrishnan will need to be doing loads of interesting work and get many more clients to stay in the reckoning.

     

     

     

  • According to sources, advanced levels discussions are on for the buyback of the 40% Y&R and Dentsu stakes in the 45-year-old agency

    Is Arun Nanda buying WPP stake in Rediffusion?

     

    By A Correspondent

     

    Is Diwan Arun Nanda buying WPP’s 26.7 per cent stake in Rediffusion Y&R? According to (reasonably reliable) sources, advanced levels discussions are on for the buyback of the Y&R and Dentsu stakes in Rediffusion Y&R. Together, the two global majors own 40 per cent of the 45-year-old Rediffusion Y&R. Or what’s officially called Rediffusion Dentsu Young & Rubicam Private Limited.

     

    It may be remembered that until recently it was WPP that was keen on buying out the 60% owned by Nanda and Ajit Balakrishnan. But that was the WPP run by Sir Martin Sorrell. Now Nanda is reportedly keen on buying the WPP stake. And not just that, the Dentsu stake too.

     

    Not many think it’s a wise move as this will allow Y&R to enter the country on its own and pose fresh competition in what is clearly a tough market for creative advertising agencies.

     

    While Rediffusion recently bagged the prestigious State Bank of India mandate, the creative advertising business overall has been under a cloud over the last year-and-a-half. Even some of the bigger named agencies, including those from the WPP group, have been facing a squeeze on earnings.

     

    According to our sources, post the buyback of the shares, a merger of Rediffusion, the agency, and Rediff.com, the general interest internet-based portal, is also being mulled.

     

    While our sources do not reveal the deal size, and whether it’s in line with the estimates of a Rs 100 cr valuation for the 60 per cent stake owned by Arun Nanda and Ajit Balakrishnan of a few years back, given the changed business scenario, the 40 per cent equity could well be valued at a low Rs 20 crore.

     

    Part of the current Rediffusion Y&R fold is the Made-in-1946 agency Everest Brand Solutions, Rediffusion-Wunderman, Sudler& Hennessey and the PR wing.

     

    As per the Rediffusion Y&R website, the story goes that “one evening in 1973, three leading stalwarts of advertising came together to discuss the state of creativity in advertising. They wanted to do something about the mediocrity, the contentment with the status quo, the inertia that seemed to pervade agencies and people. The three people, Diwan Arun Nanda, Ajit Balakrishnan and Mohammed Khan, came up with a gameplan – to start their own advertising agency, Rediffusion. An agency that would be passionate and bold; an agency that would take ownership of clients and their work to new heights; an agency that would create fearless, category-busting work.

     

    That was a different era. Forty-five years ago. The rules of the game have changed dramatically. The dramatis personae of the advertising business have changed. Will it be achche din yet again for the two Big As of the Media business – Arun and Ajit. Time will tell.

     

     

  • Sir Martin Sorrell's WPP may buy 60% stake held by Arun Nanda and Ajit Balakrishan in Rediffusion Y&R India

    Is WPP close to a full buy of Rediff?

     

    By Pritha Mitra Dasgupta

     

    MUMBAI: WPP may acquire the 60% stake held by Arun Nanda and Ajit Balakrishnan in Rediffusion Y&R India, said two persons with direct knowledge of the development, adding that both sides are in negotiations over a possible deal.

     

    The London-based advertising and marketing communications company, which already owns 26.67% of the Indian agency, has been trying to buy out Messrs Nanda and Balakrishnan since 2002. When contacted, WPP CEO Martin Sorrell said queries about a stake purchase were speculative and therefore “there are no answers”.

     

     

    Win-win for both, say industry observers

     

    By A Correspondent

     

    Sir Martin Sorrell is not known to lose battles with easily. So, even though he nearly tired of all attempts to buy the equity of original founders and promoters Arun Nanda and Ajit Balakrishnan, he got back at them by moving two prized clients to other entities in his empire.

     

    The saga starts in 2000 when Y&R, 20 per cent co-owner of Rediffusion (along with Dentsu) from 1994, was acquired by WPP. Starting 2002, when Mr Nanda was inducted into a larger Y&R leadership council, attempts were being made to woo him and get him to part the balance 60 per cent.

     

    With time, Dentsu became a passive partner, albeit a partner with 13.33% stake. The Japanese giant’s interest in a jv with Sandeep Goyal and later on its own, didn’t deter the Rediffusion interest from staying on, even as the D from Rediffusion DY&R was dropped.

     

    However, when Sir Sorrell realised that Mr Nanda wasn’t going to give in easily, he gave his Indian partner the shock treatment. Prized accounts of Colgate Palmolive and Airtel moved to other WPP entities a few years back.

     

    The loss of accounts coincided with a crisis in creative and business leadership in the agency has been an issue for Rediffusion. Despite a wealth of talent having worked with the flagship agency, it’s Everest,  under the baton of ex-JWT Dhunji Wadia, which has taken rapid strides.

     

    Rediff-watchers believe a complete buy-out will be a win-win for all stakeholders and energies being spent for the right reasons.

     

    Although the article alongside quotes an amount of Rs 150-200 crore for the stake sale, a few others with some knowledge of the development say it will be less than Rs 100 crore.

     

    Guess we’ll need to wait for things to happen.

     

    Arun Nanda, CMD, Rediffusion Y&R, said talks between the two companies were an ongoing process. “There has been no sale of any shares to WPP, nor any agreement to sell concluded,” he said. However, a WPP insider said David Sable, global CEO of Y&R, and Matthew Godfrey, president, Y&R Asia, helped Mr Sorrell take talks forward during their recent visit to India.

     

    ‘Around Rs 150-200 crore for stake’

    WPP is on the verge of closing the deal, this person said. Nanda refuted speculation regarding his agency’s financial performance.

     

    “We are a profitable agency, in the top 10, with good clients and strong brands. We have been profitable year on year, every single year since 1973!” he said. “We have clients in our portfolio who have been with us for 37+ years and we are not dependent on any one client.”

     

    Mr Nanda’s comment was in response to some observers saying that the agency had lost some of its sheen. Based on this, one WPP executive said the price for the additional 60% stake may be about Rs 150-200 crore. This writer wasn’t able to independently verify this valuation.

     

    Dentsu, which owns 13.33% of the Indian agency, said it wasn’t aware of any likely deal. “We haven’t received any official intimation on this,” said Rohit Ohri, executive chairman, Dentsu India Group.

     

    Nanda also dismissed talk regarding a possible Tata group corporate pitch.

     

    “The Tata group has recently asked a few global agencies (based abroad) for a presentation for their brand work outside India,” Mr Nanda said. “This assignment has nothing to do with the Indian market. Rediffusion is not involved in this pitch.”

     

    Rediffusion Y&R India fully owns ad agency Everest Brand Solutions and allied businesses such as VML Qais, a digital agency, and Brand Asset Valuation. If the deal goes through, Mr Sorrell may not consolidate the businesses as he has always encouraged separate, competing brands under the WPP umbrella. However, there could be a name change to reflect any new ownership.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Ajit Balakrishnan, Founder and CEO, Rediff.com, will speak at the IAA Webinar on 'World Goes Digital', on May 23 at 3 pm, using Google Hangout

    Rediff’s Ajit Balakrishnan on IAA webinar on May 23

    Ajit Balakrishnan

    By A Correspondent

     

    Close on the heels of the successful inaugural webinar, the International Association of Advertisers (India Chapter) has announced its next webinar on ‘World goes Digital’. Ajit Balakrishnan, Founder and CEO, Rediff.com, will be the speaker at this webinar, being held on Google Hangout. The webinar with Mr Balakrishnan will happen on Thursday, May 23 at 3pm *(see Disclosure).

     

     

    Srinivasan K Swamy

    Srinivasan Swamy, President, IAA India Chapter, said, “IAA’s first webinar with Rajan Anandan, in April, was an impressive success. We had nearly 200 people participating and more than 1000 people seeing it on our YouTube channel later. Going by that, I am confident that this second webinar will have at least twice the number. A small service, that IAA is providing, for young professionals and others to learn more about the digital medium.”

     

     

     

    Abhishek Karnani

    Abhishek Karnani, Director, Free Press Journal and Manish Advani, Head – Marketing & Public Relations, Mahindra Special Services Group, are co-chairing this IAA webinar series.

     

    * Disclosure: MxMIndia is partnering IAA’s webinar initiative

     

  • The website, with its new interface, plans to capitalize on the growing usage of mobile

    Rediff.com goes in for new, mobile-friendly look

    By A Correspondent

     

    Rediff.com India Limited has released its latest version of its website Rediff.com, featuring a new and enhanced homepage sporting a tiled interface. The design, developed inhouse, is based on user feedback. The Rediff homepage in its new avatar brings alive an assortment of content and services using the contemporary grid layout. Each unit of the grid features information photographs and videos, giving it a more interactive, image-friendly feel.

     

    “Current change is to respond to the consumer shift from PCs to high-graphic quality tablets and smartphones and better bandwidth in India and international markets,” Ajit Balakrishnan, Chairman and CEO, Rediff.com told MxMIndia. According to him, mobile access of Rediff.com in India currently stands at 20 percent and is rising fast. “In markets like the US it is much higher,” he said.

     

    Mr Balakrishnan further stated, “We have also redesigned the site in terms of providing users with the content and imagery they desire on our home page, while adding more e-commerce options, which have been in higher demand from this growing population. The Indian internet user base is quickly moving to consuming our services on various types of mobile devices, whether at home or on the go. As a result, this transition required us to take a fresh and innovative view of how our users are likely to interact with our portal. Our new tiled interface is a step towards making it easy for a rapidly growing segment of users who access our website from tablet like touch screen devices.”

     

    Apart from the grid layout, Rediff’s e-commerce platform, a fast-growing segment for Rediff, also gets a boost with a large footprint on the homepage to capitalize on the growing usage of e-commerce platforms throughout India.

     

    While e-commerce websites in India are gung-ho about their promotional and marketing activities, Rediff plans to keep it low. “We used to use TV up until 2008; since then the intersection between TV and Web has decreased. Active web users do not seem to be watching much TV. Word of mouth will carry this initiative forward,” Mr Balakrishnan asserted.