MxMIndia

Tag: Arun Nanda

  • The iconic creative whiz Kamlesh Pandey will be a 'Legend in Residence'

    Can Kamlesh Pandey help Rediffusion get its mojo back?

     

    By Our Staff

     

    Rediffusion has announced the return of its most famous alumnus, Kamlesh Pandey, as ‘Legend in Residence’. Pandey, who has nearly 45 years of experience in advertising, 35 years in films, and 30 years in television is an awardwinning bilingual writer. He was Creative Director at Rediffusion from 1976 to 1992. And returned again in the late 90s and early 2000s for a short innings. He is 72 and will join the agency on June 1.

     

    Some of the copy lines written by Pandey are legendary: ‘Whenever you see colour, think of us’ (Jenson & Nicholson), ‘Hum Red & White peenewalon ki baat hi kuchh aur hai’(Red & White cigarettes), ‘Palmolive da jawab nahin’ (Colgate Palmolive), ‘When it can’t be done, it must be done’ (J&N Corporate), ‘Gimme Red!’ (Eveready), ‘Annu taazgi de’ (Tata Tea) and many many more. Pandey entered the CAG Hall of Fame in 2005.

     

    Said Diwan Arun Nanda, Chairman & Founder of Rediffusion who recently sold the agency to senior advertising professional Sandeep Goyal. “I am delighted that Kamlesh Pandey is back home to Rediffusion. I have the fondest memories of working with him on some of India’s most acclaimed campaigns. Pandey commands a first-hand experience, and a deep insight into the lives and aspirations of the people of India. Which is why his thinking for brands is rooted in reality, and his creatives are always memorable,” adding: “Pandey will help the younger talent at Rediffusion to understand consumers better, think differently and write differently”.

     

    The industry has been abuzz with the development. While one former agency honcho remarked: “Brilliant idea – so Sandeep,” crediting Goyal for doing a smart one to bring back some of the lost glory.

     

    Another former agency captain was less charitable: “He’s been brought in many times in the last 25 years to resuscitate an ailing Rediff. Famous Rediff magic trick. It’s like bringing Mohammed Khan back somewhere as legend in residence.”

     

    So what will Pandey do in the agency? According to Dr Sandeep Goyal, Managing Director, Rediffusion, as ‘Legend in Residence’, Pandey will interact with Rediffusion clients. “[He] will discuss emerging consumer trends and help figure where the maximal opportunities exist in both Bharat and India; and how best to pivot brand communication for a real and enduring connect with consumers of tomorrow,”

     

    Commenting on his return to Rediffusion as ‘Legend in Residence’, Pandey added: “One way, it feels like ‘Back to the Future’. A lot has happened in Rediff since I left Rediff – Rediff managed to shake off the appendages of ‘Y&R’ and ‘Dentsu’ and returned to its original heart, mind and soul, the fearless spirit and the creative precipice that drove it in late 70’s through 90’s, the values that never left me long after I left Rediff and romanced Bollywood with some success. And now it’s great to be back. Great to be with Arun, Ajit and Sandeep. Great to be home among those who managed to get the best out of me, and those who are currently giving their best to take Rediff to a future that could be the pride of the past”.

     

    When Goyal took over Rediff, one expected him to come up with some moves like these to get into the limelight. Finally, of course, getting a fresh set of big ticket clients and getting back the freshness in the advertising will finally decide on whether this and other moves will work for the aggression which a typical Sandeep Goyal operation promises to bring in.

     

  • 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.

     

     

  • The Rediffusion Y&R Chairman and Managing Director has written an open letter to former Tata Sons chairman Cyrus Mistry asking him not to misrepresent facts about his agency

    Bandh karo bakwaas, Rediff boss Arun Nanda tells Cyrus Mistry (well, almost!)

    By A Correspondent

     

    The indefatigable Arun Nanda is at it again. The Rediffusion Y&R Chairman and Managing Director has written an open letter to former Tata Sons chairman Cyrus Mistry asking him not to misrepresent facts about his agency.  “Please do not place selective facts about us to suit your narrative before the media and the public,” he writes, adding: “Our reputation has been built over 43 years and I will not allow it to be tarnished in any manner whatsoever.”

     

    So Arun Nanda ko gussa kyun aata hai? What irks the big boy of adland? Well, there have been a few reports that have appeared recently mentioning him. Like this one in The Economic Times: http://economictimes.indiatimes.com/articleshow/55435946.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

     

  • Has the feisty Arun Nanda (wt Ajit Balakrishnan) agreed to sell his 60 percent to WPP? A report says it is 'likely' to have…

    Rediffusion-WPP. Deal Or No Deal?

     

    By A Correspondent

     

    Is it a story done every year by the news media, as a senior Rediffusion Y&R executive told MxMIndia when we called her/him to verify whether WPP-Rediff was a done deal?

     

    We don’t know. We aren’t sure.

     

    Denials are regularly issued for many M&A deals, but then often these stories are leaked to put pressure on a company that is not buckling under.

     

    Then there are also stories like the one which said that Piyush Pandey was going to join nephew Abhijit Avasthi in his start-up. Pandey has rubbished the story in his recently released ‘Pandeymonium’.

     

    “In most cases, the ‘news’ is completely unfounded, even as the article carries authoritative quotes attributed to unnamed sources ‘close to the developments,” wrote Pandey as he went on to write about the speculative story on him establishing his own advertising as he turned 60 earlier this year.

     

    We don’t know, We aren’t sure.

     

    We can’t say that the Rediffusion deal story is unfounded.  We also ‘confirmed’ it from a couple of independent sources.

     

    Btw, we also spoke to a senior functionary at the Dentsu Aegis Network in India who told us that the 13.33 percent investment is from the Dentsu HQ in Minato, Tokyo in Japan, so we should be calling some ‘San’ there and saying: “Konnichiwa”.

     

    But, since we have rights to republish specific Eco Times stories, here’s what appeared this morning:

    WPP to finally take control of Rediffusion; Y&R to raise stake in Arun Nanda-led agency to 86%

     

    By Pritha Mitra Dasgupta

     

    In 2007, Arun Nanda, who started Rediffusion in 1973, had declared, “Not now, not ever,” to an offer from Martin Sorrell, chief executive of the world’s largest advertising conglomerate WPP, to acquire a controlling stake in his agency for Rs 500 crore. But at 72, Nanda, one of the last standing independent Indian advertising warhorses, seems to have finally put his sword down in the war that Sorrell has been trying to win since 2005. The battle has now been reduced to negotiations.

     

    WPP’s creative agency Young & Rubicam (Y&R), which owns 26.7 per cent in Rediffusion Y&R, is likely to raise its stake to 86 per cent in a deal staggered over the next few months. Y&R will first increase its stake to 51 per cent and gradually buy out Arun Nanda and Ajit Balakrishnan. Nanda and Balakrishnan currently own 60 per cent stake in Rediffusion Holdings Pvt Ltd.

     

    It has Everest Brand Solutions, Wunderman, Sudler & Hennessey and Rediffusion-Edelman as subsidiaries.

     

    The first stage of the deal – the acquisition of management control – will see Nanda and Balakrishnan take home a payout estimated to be around Rs 100 crore.

     

    “Your sources may be incorrect,” wrote Sorrell in response to an email questionnaire sent by ET. A mail written to Nanda did not elicit any response. But during his recent visit to India earlier this month, Sorrell told a number of WPP group CEOs about the agreement of the deal.

     

    The due diligence has already begun. According to multiple sources, while Sorrell, Nanda and Balakrishnan have the deal in principle, they will sign on the dotted line in the coming months. Once the deal is sealed, Rediffusion Y&R and its group companies will be rebranded as Y&R to reflect the new ownership.

     

    While Nanda is likely to exit the creative and media business completely, he will continue to oversee the PR business, and retain a controlling stake in PR agency Rediffusion-Edelman.

     

    “Of all the Rediffusion companies, it is the PR division Edelman that clocks in more than 50 per cent of the revenues…I think it will be best for Nanda to go with the Y&R offer,” said an advertising veteran aware of the deal.

     

    Nanda and Balakrishnan first diluted their stake in 1994 when Dentsu Inc and Y&R, each bought 20 per cent stake in Rediffusion, which was then rebranded Rediffusion DY&R.

     

    In 2000, WPP acquired Y&R. In 2004, the joint venture Dentsu-Y&R was formed in Japan, and the two agencies’ stakes in Rediffusion were redistributed as per a worldwide agreement. In India, Dentsu ended up with a 13.3 per cent stake, while Y&R held 26.7 per cent.

     

    Dentsu’s 13.33 per cent stake is also likely to be transferred to Y&R, said a source familiar with the deal.

     

    Source:The Economic Times

    Copyright © 2015, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • The first issue of the e-zine was unveiled by actor,Tisca Chopra along with Arun Nanda, Chairman, Mahindra Holidays

    Mahindra Holidays unveils Club Mahindra Teddy Travelogues

    By A Correspondent

     

    Mahindra Holidays & Resorts India Limited (MHRIL) has announced the launch of Club Mahindra Teddy Travelogues, India’s first crowd-sourced travel e-zine for children. This quarterly e-zine is open for readership by all and is available at www.clubmahindra.com/teddytravelogues/. The first issue of the e-zine was unveiled by actor,Tisca Chopra along with Arun Nanda, Chairman, Mahindra Holidays recently.

     

    Club Mahindra Teddy Travelogue invited entries from children across the country in eight categories – My Family Holiday, Holiday Stories, My Favorite Travel Companion, Young Traveler, The Rhyme Journey, Why Travel?, Holidoodle and Delicious Diary. Children from all over India shared their holiday stories, paintings, videos, photos, poems, holiday doodles and food related stories to be published in this unique e-zine.

     

    The entries were shortlisted and judged by an eminent panel comprising children’s author Neeru Nanda, TV actor Shakti Arora of ‘Meri Aashiqui Tumse Hi” fame on Colors, Tamil actor Mathivanan Rajendran, celebrated photographer Radhakrishnan Chakyat and education leader Miss Mehar Zariwala. The winners were notified through direct communication and the prizes have been sent to their respective locations. Mumbai winner Siri Parashar, a bright seven year old travel enthusiast from Thane was also present at the event to launch Teddy Travelogues.

     

    Speaking on the occasion, Arun Nanda, Chairman, MHRIL, said, “Children love to travel and experience new things. At Club Mahindra, we aim to make this into an enriching experience by creating special moments for them at our resorts. Club Mahindra Teddy Travelogues will help us in capturing these special moments and sharing them with the rest of the world.”

     

  • 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