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Wednesday, Dec 17, 2003

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Bates expects 25% growth with launch of pharma division

Purvita Chatterjee

Mumbai , Dec. 16

WITH Healthworld, the pharma communications division of Bates India, commencing operations in Mumbai in the first quarter of 2004, the WPP agency is expecting to grow at 25 per cent.

Speaking to Business Line, Mr J.S. Mani, Executive Vice-President, Bates India, said, "Apart from the existing pharma clients which Bates has, we would be pitching for new clients for their ethical brands."

Bates India already services brands belonging to pharma majors such as Pfizer (for Benadryl) and Dabur. With Healthworld expected to start operations with its first office in Mumbai, Bates is looking at servicing the ethical brands from its existing clients as well.

With the patent regime ending for all pharma companies by 2005, advertising agencies have been gearing up to service clients in this area. "With such a vast population, the pharma industry will always exist in India as there will be so many lives to save," Mr Mani said.

Apart from ethical pharma communications, Bates has intentions of beefing up its operations for its direct and interactive division - 141 - which currently has its operations restricted to its Kolkata branch. Bates is expected to bring 141 to its Mumbai and Delhi offices early next year as well.

Mr Mani added, "141 was conceived with the idea of targeting media-dark markets. We began this division in Kolkata primarily to service our ITC account. But we are looking at starting operations in our Mumbai and Delhi branches."

Treating 141 as a brand within Bates, the purpose of setting up the division was to stress on the importance of point of contact with consumers especially in categories such as liquor and tobacco. "141 is expected to do exactly the reverse of what mass media advertising does. It looks at how the consumer interfaces at the point of sale and then funnel this thought process upwards," says Mr Mani.

However, its design cell division, Fitch, is expected to make a late entry into the Indian market since it already services Indian clients from its London headquarters. Fitch has already designed RPG's retail stores.

The Rs 150-crore Bates India expects to tilt the ratios between its mainline advertising revenues and specialised marketing divisions in the ratio of 60:40. Mr Mani said, "Currently, the revenues are skewed towards mainline advertising, and we expect the ratios to change in future."

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