MxMIndia

Tag: Network18

  • She was earlier the CEO of Firstpost.com, the leading news and opinion portal from the group

    Durga Raghunath elevated at Network18 Digital

    By a correspondent

     

    Network18 Digital, the digital content arm of Network18 has strengthened its leadership structure by elevating Durga Raghunath to CEO. She was earlier the CEO of Firstpost.com, the leading news and opinion portal from the group. Lakshmi Narasimhan, the previous CEO for the group’s digital content business, is now moving onto a corporate role.

     

    Ajay Chacko

    Commenting on the development, Ajay Chacko, COO, Network18 said, “At Network18 Digital, we are proud to have built cult digital content brands which have had a defining influence on the space. As consumer internet in India undergoes a paradigm shift, we continue to be focused on leading this change from the front. Durga is well-equipped to lead this effort for us due to her strong understanding of the digital user, products and the opportunity.”

     

     

    Lakshmi Narasimhan added, “Durga has played a stellar role in transforming Firstpost from an innovative idea into a leader brand today. We are confident that in this expanded mandate, she will take Network18 Digital to newer heights.”

     

    Raghunath has over ten years experience in publishing – both books and digital. She previously worked with the Wall Street Journal, Mint and HarperCollins in New York.

     

  • The 24-hour channel will air Indie music along with films, TV shows, comedy acts and live performance

    Pepsi & MTV India to launch Pepsi MTV Indies

    By A Correspondent

     

    Viacom18 Media Pvt Ltd, a joint venture between Viacom Inc and Network18, has revealed the identity of its soon-to-be-launched Indie music and sub-culture channel – Pepsi MTV Indies. PepsiCo India is title sponsor of the channel.

     

    Led by Music, Pepsi MTV Indies will also reflect other subcultures like independent films, art, comedy and more, thereby taking these alternative art forms into the homes of millions. The channel will be launched this month (in February), in High Definition and Dolby 5.1 surround sound and will be available across leading DTH and digital cable platforms. Indies will have a strong presence on the internet and can be accessed via the mobile and with apps. On-ground activities are an integral part of the new offering.

     

    Sudhanshu Vats

    Explaining the rationale behind launching the channel, Group CEO of Viacom18, Sudhanshu Vats said, “At Viacom18, we believe in sharper segmentation whether it pertains to the genre, the audience or by markets. Indies is a move that further strengthens our bouquet of varied offerings. India is moving from a collective to an individualistic content consumption habit. The youth and music genre offers great opportunity for growth and we’re sure that this move will help us build an ecosystem for creating a lot of live content as well.”

     

    Talking about the first of its kind brand association in India, Deepika Warrier, Vice President- Po1 Marketing PepsiCo India said “Music is a key youth passion point and Pepsi’s biggest platform globally. We are excited about partnering with MTV to launch this new platform, as we continue to set and fuel trends, creating a gateway to new experiences for our consumers”

     

    Along with announcing the launch, Pepsi also unveiled its new product packaging with the global logo and visual identity. “The launch of the channel coincides with the debut of Pepsi’s global logo and visual identity system in India. Celebrating revolution, engagement and the impatience to be more, Pepsi continues to change the way the young see the world and the way the world sees them,” Ms Warrier added.

     

    Aditya Swamy

    Announcing the launch of the channel, Aditya Swamy, Business Head, MTV India said, “MTV is the cultural home of the millennials, musicians and artists across genres. Our partnership with Pepsi is the start of a brand new chapter in the entertainment landscape of India.”

     

  • IBN7 Managing Editor Ashutosh is moving on and will be succeeded by Vinay Tewari, Managing Editor, CNN-IBN

    Ashutosh quits IBN7, Vinay Tewari to take additional charge of news channel

    By A Correspondent

     

    It’s a move that not’s entirely unexpected in the capital’s news circles. IBN7 Managing Editor Ashutosh has decided to move on. He will be succeeded by Vinay Tewari, Managing Editor, CNN-IBN who will now also lead IBN7 editorial operations in the same capacity. In this expanded role, Tewari will also drive network synergies across CNN-IBN and IBN7.

     

    Speaking on the development, B.Sai Kumar, Group CEO, Network18 said: “Ashutosh has played a key role in IBN7’s emergence as one of the most credible brands in Hindi news. We thank him for his immense contribution and commitment to the Network. Vinay has led CNN-IBN admirably and in this expanded mandate, we’re confident that he will not only take IBN7 to new heights editorially but also strengthen our general news network further”

     

    Commenting on this, Rajdeep Sardesai, Editor-In-Chief, IBN News Network added “Ashu has been a driving force behind IBN7 and his passion and leadership has been instrumental in making it into a fearless and independent voice in Hindi journalism. We thank him for his stellar effort and wish him the very best. Vinay has been an integral part of the general news network from the very beginning and I’m confident that he will bring his unique perspective and rich news experience to bear at IBN7 and the network ”

     

    Said Ashutosh: “Building IBN7 into what it is today has been one of the most satisfying experiences of my professional journey. I would like to thank all my colleagues for their support and look forward to newer challenges”

     

    And this is what Mr Tewari said: “IBN7 today stands for the best in hard-hitting and inclusive journalism and it’s a privilege for me to lead it further. I look forward to working closely with the talented and passionate team to ensure we honor the trust of our viewers in IBN7 and ensure that both CNN-IBN and IBN7 benefit and capitalize from the general news network in equal measure.”

     

    Although the communiqué received from the channel doesn’t mention where Ashutosh is moving to, there are rumours that he may join the Aam Aadmi Party. “These are again historic moments, societal churning is on, everybody has to contribute to make the change robust and beautiful,” Ashutosh tweeted earlier today.

     

  • The company turned in a profit of Rs 5.9 crore after tax for the quarter as compared to a loss of Rs 23.5 crore in the previous year

    Return of the good times for TV18 & Network18

    By A Correspondent

     

    It’s Q1 results announcement time. And although MxMIndia doesn’t do individual look-ins into the financial numbers presented quarter se quarter tak, this one deserves a special mention.

     

    For the q ending June 30, TV18 Broadcast Limited reported revenues for the television and motion pictures business (including IndiaCast) stood at Rs 396.2 crore. Ad revenues grew 6% year-on-year. Indicating the fruits of digitization and a well-orchestration distribution exercise, net distribution income grew 32% sequentially to Rs 34.9 crore this quarter, swinging from a loss of Rs 16 crore previously.

     

    And the real reason why the offices of TV18 were flooded with bubbly yesterday: the reported operating profit for the quarter stood at Rs 23.8 crore, up 57% over previous year. The company turned in a profit of Rs 5.9 crore after tax for the quarter as compared to a loss of Rs 23.5 crore in the previous year. Announcing the results, Raghav Bahl, Managing Director, Network18 said, “The macroeconomic environment continues to be challenging and growth prospects remain uncertain. Given this backdrop, our broadcasting operations turned in a steady performance aided by the roll out of digitization in 42 cities.”

     

    Commenting on the results for the quarter, B. Saikumar, Group CEO, said, “We continue to turn in steady operating profits from our television businesses. Motion pictures have seen losses this quarter and the management is confident of stemming them in the immediate term. While our news and infotainment businesses have seen distinct softness in advertising, our entertainment businesses led by Colors have performed well on this front. Net Distribution Revenues from IndiaCast are on a strong growth trajectory and we continue to be enthused by its growth potential. The industry is going through several important changes on both the advertising and distribution fronts. We believe that these changes are positive and will lead to a stronger industry structure. We remain confident of delivering a strong year ahead

     

    Meanwhile, Network18’s PAT for Q1FY14 stood at Rs 19 crores as compared to Q1FY13 loss of Rs 90 crore.  The digital content and eCommerce business grew to Rs 106.9 crores, registering a growth of 174%, over the corresponding quarter during the previous year (adjusted for the sale of Newswire18).

     

    Network18 inked an agreement with OCP Asia Ltd. to raise growth capital of USD 30 Million in HomeShop18. During the quarter, it sold its entire stake in a Capital18 portfolio company – Webchutney.

     

    Added Mr Bahl: “There were pockets of weaknesses in our portfolio and we are committed to improving segments that are not meeting expectations. We have a strong portfolio of media businesses and remain confident of unlocking their value for our stakeholdeRs ”

     

  • Raghav Bahl, Founder & Editor, Network18, on the Colors story. On the missing 'u', the resolve to go for a high voltage launch, the signing of the nine-figure authorization for Akshay Kumar and keeping the faith.

    Raghav Bahl: The Colors of Trailblazing

    By Raghav Bahl

     

    “Where is the ‘u’”, I exclaimed at our regular fortnightly update meeting in January 2008. An economic cloudburst was about to crush the globe in an unprecedented landslide, but our mood was flush and excited. Sitting across me were Haresh Chawla, Rajesh Kamat, Ashvini Yardi, Sanjay Ray Chaudhuri (RayC) and Vandana Malik. Ashvini had just turned the laptop’s screen towards us, revealing the logo of “Colors”, resplendent in purple, blue and white hues, levitating on a striking flute. “C’mon Raghav, the ‘u’ is so old-fashioned and ‘your’ generation. Today’s Google kids spell it the way the Americans do. It’s Colors, without the ‘u’!” A trail-blazer was born.

     

    Six months earlier, we had spotted a wafting opportunity. The reigning market leader over the last decade had crashed to less than 200 GRPs. The extant Number One was cruising unchallenged in the 800 GRPs’ stratosphere. There was a yawning gap, reaching out and luring a challenger to dive into the treacherous blue sky in between the two. Another contender, called Imagine, had strung out its sails. Viacom and TV18 decided to take the plunge too. May the best woman win!

     

    TV18 was just emerging from another heady launch two years earlier, in 2006. We had taken the battle to the utterly monopolized English general news market. Within months of its launch, CNN-IBN had dethroned the leader, proving all naysayers wrong. And that victory had taught us a seminal lesson – if you want to enter an arena which is totally dominated by a single player, just do not pussyfoot your entry. Enter with the mindset of a leader. Enter with a full FPC, with drama, comedy, crime, mythology, clutter-breaking reality and big film premieres. Spend a dollop to hurl the brand in the faces of millions and millions – and back it up with a distribution plan which puts you right “next” to the leader.

     

    Yes, it would cost hundreds of crores, but we were clear that we would rather burn hundreds of crores in a high voltage launch and win or flame out, as against die a slow and painful death with a hundred small cuts, struggling every day in the Number 4 or 5 position, draining away cash and energy, shoulders drooping, simply waiting for the inevitable closure. We were sure that we had to enter with the mind-set of a leader.

     

    So when Ashvini said that our flagship show was a socially progressive drama set in rural Rajasthan, classically shot, with folk music, telling the poignant and uplifting story of a child bride, we said “go for it”. Balika Vadhu was born. Then we said that we will trot out little Krishna in the mythology genre, in place of the muscular and mustachioed cardboard characters that ruled there. While the others were doing urban saas-bahu dramas, we plumped for socially relevant, suburban, semi-rural tales of human spirit and suffering.

     

    An expanded TV audience, now residing in “non-metro” India, resonated with our stories. We piled on the pressure by commissioning the reigning star of Bollywood – Akshay Kumar – to helm Khatron Ke Khiladi. I still remember the day I authorized that 9-figure payment to sign him up. My fingers trembled, but our resolve was steely. While every channel was tucking reality away on the weekends, we decided to disrupt with a daily one-hour strip at 9 pm. The women loved Akshay, the men loved him as much as they loved the lissome ladies, and the teens rediscovered GECs to enjoy the youthful Khatras and Khiladis. Even as the economic cloudburst destroyed the world economy in 2008/9, we kept the faith. The rest is history!

     

    Five years on, I now watch the mounting energy of Colors from a relative distance, totally sanguine that Prashaant, Manisha, Raj and Sudhanshu have caught the gale – we still have the mindset of a leader.

     

    Raghav Bahl is Founder & Editor, Network18

     

  • The integrated business newsroom will comprise CNBC-TV18, CNBC Awaaz, CNBC-TV18 Prime HD, and Moneycontrol.com. Also, Latha Venkatesh and Menaka Doshi elevated as Executive Editors, CNBC-TV18

    Senthil Chengalvarayan appointed Editor-in-Chief for Network18 integrated business newsroom

    By A Correspondent

     

    Senthil Chengalvarayan

    Network18 Group has announced the setting up of ‘Network18 Business Newsroom’, an integrated newsroom comprising its market leading broadcast and digital news outlets in the business media space, under the leadership of Senthil Chengalvarayan. CNBC-TV18, CNBC Awaaz, CNBC-TV18 Prime HD and Moneycontrol.com will now function as part of this larger editorial set-up. This follows the appointment of Shereen Bhan as the Managing Editor for CNBC-TV18.

     

    The newsroom will act as a common hub to ensure seamless broadcast and digital synergies from both a newsgathering and output perspective across these brands, which cumulatively attract over 40 million viewers and 15 million unique visitors on an average every month. In this new capacity, Mr Chengalvarayan will work closely with R Jagannathan, Editor-In-Chief of Network18’s web and publishing stable which includes Moneycontrol.com, Sanjay Pugalia, Editor-In-Chief, CNBC Awaaz and the editorial heads at CNBC-TV18.

     

    Menaka Doshi

    In a concurrent development, the editorial leadership team at CNBC-TV18 has been strengthened further with senior editors Menaka Doshi and Latha Venkatesh elevated as Executive Editors and also given charge for key verticals at the Network18 Business Newsroom. At the Newsroom, Menaka has been assigned the mandate to lead corporate reportage, law and associated areas and Latha Venkatesh will take charge of the Banking and Financial Markets vertical.

     

    Speaking on this development, Raghav Bahl, Founder & Editor, Network18 said “As the country’s leading broadcast and digital player in business news, we are well-positioned to re-define the category in the context of a converging media landscape. The Network18 Business Newsroom is designed to capitalize on the deep engagement and trust our iconic brands enjoy. We are confident that the editorial leadership team under Senthil’s guidance will be able to craft a new paradigm in business media”

     

    Latha Venkatesh

    Commenting on this, B.Sai Kumar, Group CEO, Network18 sai:d “In Senthil, Menaka and Latha, we have the most trusted voices in business journalism today and we believe that they will bring their deep expertise and insights to bear at the Newsroom”

     

    Added Mr Chengalvarayan, Editor-In-Chief, Network18 Business Newsroom: “We pioneered business news on television and the web in India and the newsroom is a natural extension of our successful journey. It’ll ensure that each of our brands access the best editorial expertise across the group while they continue to fulfill their distinct editorial propositions. And they’ll do so through a structure that capitalizes on the new realities in the media landscape.”

     

  • Web18, the digital content arm of Network18, has elevated Durga Raghunath to CEO of Firstpost.com. She was earlier VP, Product & Executive News Producer for Firstpost.

    Durga Raghunath elevated to CEO, Firstpost

    By A Correspondent

     

    Web18, the digital content arm of Network18, has strengthened its leadership structure by elevating Durga Raghunath to CEO of Firstpost.com. She was earlier VP, Product & Executive News Producer for Firstpost. This move is part of Web18’s progression towards a decentralized operating structure built around key strategic business units.

     

    Commenting on this development, Lakshmi Narasimhan, CEO, Web18 said, “Durga has been the force behind Firstpost.com that has made it one of the most influential news products in the country in a short span of two years. As the product enters its next phase of growth and monetization, it needs somebody with a deep understanding of digital news products and their business models to lead it. Durga fits the bill perfectly.”

     

    Speaking on her elevation, Durga Raghunath said, “I’ve sat in front of a computer in a newsroom for two years, building an evolving brand. To be given the opportunity to step back and look at it, in its entirety, is indeed very exciting.”

     

    Ms Raghunath has over ten years experience in publishing – both books and digital. She previously worked with the Wall Street Journal, Mint and HarperCollins in New York. She has an MBA from ISB and studied publishing at Columbia University. She joined Network18 two and a half years ago to conceptualize and launch firstpost.com.

     

  • Network18's online news portal Firstpost.com has acquired FakingNews.com, which will remain as a standalone entity with Rahul Roushan as its editor.

    Firstpost acquires satire portal Faking News

    By A Correspondent

     

    Network18’s online news portal Firstpost.com has acquired FakingNews.com. FakingNews.com will remain as a standalone entity, and founder Rahul Roushan will remain its editor.

     

    “Two years after launch that we are a social news product is beyond doubt. Our audience through social networks and the interaction on our site, have proven, unequivocally, that social relevance will drive our future,” saidDurga Raghunath, VP Product and Exec News Producer, Firstpost.

     

    “Our first step into this future, is the acquisition of Faking News, a site that has defined satire and humour writing in India. Our strong belief is that those who are digital news addicts, are also those who have an enormous appetite for satire,” she added.

     

    Rahul Roushan of Faking News said, “It was clear that the ‘next step’ involved finding the right partners for growth, and growth in the right direction. Faking News had to continue being a “news satire” website and not lose its focus. And after a lot of thinking and evaluating various options, I decided to go ahead with Firstpost. Firstpost is not your typical “mainstream media” outlet. It values its readers, it believes in interaction, and doesn’t see the “social media” as its antithesis.”

     

  • This appointment is aligned with the group’s plan to strengthen its central management structure aimed at accelerating growth and furthering synergies between businesses

    Ajay Chacko is now COO @ Network18

    By A Correspondent

     

    Ajay Chacko

    In a significant development, Network18 Group has announced the appointment of Ajay Chacko as COO. This appointment is aligned with the group’s plan to strengthen its central management structure aimed at accelerating growth and furthering synergies between businesses. Mr Chacko has been with the group for over nine years and is presently President of A+E Networks I TV18, the joint venture between A+E Networks, US and TV18. He will currently continue to hold responsibility for the venture.

     

    In his new role, Mr Chacko will actively support management teams and leaders across functions in leveraging the network’s diverse strengths, be responsible for creation and management of network-wide properties and institutionalize processes and models that offer value across the group and its ventures. He is also mandated with strengthening the business planning and monitoring processes as well as other critical support and staff functions across the group. Additionally, Mr Chacko has been entrusted with the role of being the custodian of ‘Brand Network18’.

     

    Commenting on this, Raghav Bahl, Founder & Editor, Network18 said, “The dynamic nature of the media landscape in India today has necessitated the need to continuously evolve our internal operating environment to align with these changes. We have now embarked on a path of bringing together our various business units in order to successfully ride the opportunity wave and stay focused on returns to shareholders. In Ajay, we entrust the responsibility of strengthening our continued efforts to emerge as ‘one’ strong network. He has our best wishes and whole-hearted support.”

     

    Speaking on this development, B. Sai Kumar, Group CEO, Network18 said, “We’ve invested in and built a great set of brands across multiple platforms over the last decade. This network today, straddles broadcast, e-commerce, digital content and niche print businesses. In the next phase of Network18, we intend to consolidate the strengths of each of these businesses across the network, extract value through unrelenting focus on internal assets and thereby better our offerings to external constituencies all around. Ajay has been key to the success of some of these businesses and in this new role, he will bring his expertise, foresight, operational and people skills to achieve what we’ve set out to accomplish.”

     

    Mr Chacko said, “We have been seen to be a diverse and talented set of people running some of the country’s most successful media brands. I hope to be able to supplement Sai’s efforts to help strengthen the collaboration between our various business units and functions with a view to improve financially as well operationally and emerge stronger as one network.”

     

    In his earlier roles at Network18, Ajay has led many of the group’s businesses such as CNBC-TV18, CNBC Awaaz and Forbes India. Mr Chacko has also led the group’s efforts in the business media domain as well as the successful launches of key digital properties of Network18. He has been responsible for the functioning of the JV between A+E Networks & TV18. Prior to joining Network18, Mr Chacko worked in financial services and media for over a decade. His earlier stints were with IL&FS (Infrastructure Leasing & Financial Services, India) and he has also been a part of the start-up team at Sharekhan. He started his career with the Indian Express Group where he worked in various capacities.

     

  • R Jagannathan will lead Moneycontrol.com, Firstpost.com, Forbes India and Network18 Publishing

    R Jagannathan is Network18’s ed-in-chief for web & print

    By A Correspondent

     

    Network18 group has strengthened the editorial structure at its web and publishing arms by elevating veteran journalist R Jagannathan (“Jaggi”) as Editor-In-Chief. Mr Jagannathan will be responsible for leading editorial strategy and driving content synergies across a bouquet comprising some of the country’s leading news and special interest brands. This is part of the group’s progression towards an integrated publishing and digital editorial operation.

     

    This mandate includes Moneycontrol.com and Firstpost.com, Forbes India and Network18 Publishing, which spans a portfolio of 18 B2C and B2B titles such as Overdrive, Better Photography, Chip, T3, Entrepreneur, Search and Auto Monitor.

     

    Mr Jagannathan had taken charge of Moneycontrol.com and Firstpost.com at the time of joining Network18 in 2011. In this expanded role, he will be additionally responsible for Forbes India and Network18 Publishing. Editors at each of these brands will now report to him with immediate effect.

     

    With a career spanning over 36 years, Mr Jagannathan has been the editor of several print and digital publications across the general and business news space. Prior to joining Network18 Group in 2011, he was the Executive Editor at DNA. Earlier, he was the Executive Editor at Business Standard and he has also been the Editor at Financial Express, Indian Management and Business World. He was the founding Executive Editor of Business Today in the early 1990s and Business Editor of India Today before that. His first foray into the digital world came when he became Editor at Myiris.com at the height of the first dotcom boom.

     

    Raghav Bahl, Founder and Editor, Network18 said, “Platform neutrality in publishing is almost a truism now and as one of the country’s largest news and digital players, we’re best placed to lead this broadening trend. It’s critical that our brands access the best expertise across the group while they continue to fulfil their distinct content mandates and they do so through a structure which mirrors the new digital reality. We have entrusted the task of leading this effort in the able hands of Jaggi.”

     

    B Sai Kumar, Group CEO, Network18 said, “In Jaggi, we have one of the finest editorial minds in the industry with an unmatched breadth of experience and a proven track record, which includes the stellar performance of our digital brands under his command, Moneycontrol and Firstpost. We’re confident that in this expanded mandate, he will help us further enhance our editorial product and deepen audience engagement and market leadership.”

     

    Mr Jagannathan remarked, “Network18 has some of the country’s most loved brands which enjoy the highest levels of trust and credibility with audiences and each represents a unique editorial voice. I look forward to working with the teams to ensure that we strengthen our proposition across platforms.”

     

  • Network18 divests stake in Infomedia Yellow Pages and AskMe biz to Getit

    Network18 sells yellow pages and AskMe biz to Getit

    By A Correspondent

     

    The Network18 group’s divestment of stakes in non-core assets has taken another leap with the announcement of stake sale in its yellow pages and AskMe businesses to leading yellow pages company Getit Infoservices.

     

    The divestment is subject to shareholders’ approval.  Earlier during the current  financial year, Network18 had  divested its entire stake in Newsire18 and partially diluted its stake in Bookmyshow.com.

     

    Earlier today, the Network18 Group informed stockmarkets that it has entered into an agreement to profitably divest its premier local search businesses – Infomedia Yellow Pages and AskMe.  The combined operations of Getit will be referred to as ‘Getit Infomedia’ and  will be wholly owned by shareholders of Getit. Getit investors include Malaysia-based Astro group and Helion Venture Partners, a leading VC fund.

     

    Announcing the transaction, Raghav Bahl, Managing Director, Network18, said, “The divestiture of  Infomedia Yellow Pages and Askme, India’s leading local search businesses is a reflection of our  commitment to profitably monetize non-core assets for the  benefit of our shareholders and to also facilitate  the growth of these businesses to the next level. We would like to convey our best wishes to the team as they embark on the next phase of their journey.”

     

    Commenting on the deal, B. Sai Kumar, Group CEO, said, “We take pride and pleasure in having been a part of the Infomedia Yellow Pages and Askme businesses. We are delighted with this development and believe that the new operations will be a powerful solution provider for the SME space in India. We would like to wish  the team the very best as they continue to excel in their endeavours.”

     

  • After Taproot, Japanese ad giant Dentsu is in advanced talks to buy leading digital firm Webchutney

    Dentsu in talks to buy out digital agency Webchutney

    By Ratna Bhushan

     

    Japanese advertising agency Dentsu is in advanced talks to buy out leading digital advertising agency and consulting firm Webchutney.

     

    This will be Dentsu’s first local acquisition in the digital agency space. Network18, which holds 70.06% stake in the Sidharth Rao-promoted Webchutney Studios, is looking to exit from the alliance, two officials with knowledge of the development said. The deal size is estimated at between Rs 40 crore and Rs 60 crore for Network18’s 70.06%, which values the agency at roughly Rs 90 crore on the higher side.

     

    “Dentsu is expected to buy out Network 18’s stake in Webchutney. The promoters of Webchutney will continue to hold their stakes,” one of the officials quoted earlier said.

     

    Rohit Ohri

    Rohit Ohri, Dentsu India group’s executive chairman said: “We are looking to scale up our digital capabilities in India. Obviously, acquisition is one of the options. We are currently discussing the various options and putting together our plan.” Officials close to the development say Webchutney, which was ranked the No 1 digital agency in the latest Brand Equity Agency Reckoner, is the front-runner in Dentsu’s quest for inorganic growth in this space.

     

    Network18 had invested in Webchutney through its investment arms, Capital18 Ltd and Capital18 Fincap, in 2007. The agency, which services firms like Airtel, Microsoft, Hindustan Unilever, Marico and Titan, posted a profit of Rs 6.35 crore in the financial year 2011-2012 on revenues of Rs 21.55 crore. Network18 owns 49.42% of the shareholding through Capital18, Mauritius and 20.64% through Capital18 Fincap.

     

    Webchutney’s Rao said: “It’s very early to talk about any new alliance… nothing has been finalised as we are evaluating many options.”

     

    Sarbvir Singh, Capital 18 MD, too neither denied nor confirmed if Network18 was exiting Webchutney. “In the normal course of business, at any given point in time, we are approached by several interested parties and we speak to them as appropriate. We have no other comment to offer at this point.”

     

    Webchutney was set up in 1999 by entrepreneurs Sidharth Rao and Sudesh Samaria. The agency’s area of work includes online advertising, website design, mobile marketing and social media. Its employee strength is about 200.

     

    In July, globally Dentsu had acquired British media buying group Aegis for $4.9 billion. Back home, too, the Japanese agency has been on the prowl. In August, it acquired majority stake in creative hotshop Taproot.

     

    Founded by ad men Agnello Dias and Santosh Padhi, Taproot has created clutter-breaking ads including PepsiCo’s ‘change the game’ and Airtel’s ‘jo tera hai wo mera hai’.

     

    Denstu also has an indirect alliance with mobile marketing agency ad2c, a collaboration between Japan’s D2 Communications and Singapore-based Affle, led in India by Madan Sanglikar. In mid-August Aegis had acquired D2 Communications, a digital marketing and search agency. Indirectly, this deal gave Dentsu access to the digital space.

     

    Dentsu’s clients include car maker Toyota and electronic firm Panasonic whilst Aegis services brands such as Adidas and Philips.

     

    Digital agencies are increasingly being wooed by traditional ones. Earlier this year, Publicis Groupe bought out digital and performance marketing firms Resultrix and Indigo Consulting in two back-to-back deals. And in mid-June this year, WPP Group bought out a majority stake in Hungama Digital Services through its agency JWT Singapore.

     

    Source:The Economic Times

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