The Hindu Business Line : Euro RSCG sees 30% growth this year

MR Ishan Raina, Chairman & CEO of Euro RSCG, describes the year gone by as a "mixed" one. He claims his agency managed to grow between 25 and 30 per cent last year and expects to maintain similar growth rates this year. Bagging the coveted ONGC account (estimated at nearly Rs 30 crore) last year, Euro RSCG recorded growth rates which surpassed the ad industry's 10-15 per cent average growth rate figures.

Speaking to Business Line, Mr Ishan Raina said, "We have made investments in creative and media. This is in terms of investing in talent in these areas.'' Last year, the agency recruited nearly 30 people for its media and creative departments.

Media Planning Group (MPG), the wholly-owned media buying division of the agency floated a year ago, has recorded billings turnover of over Rs 200 crore. According to Mr Sandip Tarkas, President, South Asia, MPG, "Being a smaller agency there was a squeeze in margins in spite of which there was an opportunity to grow in more specialised areas.'' During the course of last year, MPG managed to bag five new clients including the likes of Reckitt Benckiser and IL&FS.

Importing certain modern media tools from its head office in Madrid, MPG in India offers solutions in the area of media mix decisions, media phasing and investment prioritisation. Targeting a 50 per cent growth this year, MPG is in the process of establishing a professional team to build stability in the business.

Meanwhile, with the growing number of pharma clients, the agency is also looking at bring in Euro Life, its healthcare company based in New York, to service the growing list of its healthcare accounts such as Novartis and Elder Pharma. While the agency already is using international learnings from Euro Life, the potential of the pharma business in India may soon have the agency floating Euro Life in the country.

Besides the agency is also looking at beefing up its accounts down south where it services the Aircel cellular account. Recently, Aircel has acquired RPG's cellular operations for the Chennai circle and the agency is hoping to become part of the additional business. Claims Mr Kaustav Das, Vice- President, Euro RSCG, Chennai, "With RPG Cellular being bought by Aircel, Euro RSCG is in the run for acquiring the rest of the cellular business as well.''

Mediaturf, the online marketing company with Euro RSCG as a majority shareholder, launched in 2000, is also looking at expanding its operations to new markets. Mr Ratish Nair, Chief Operating Officer, Mediaturf, says, "There are plans in the pipeline to target the NRI audience with the US seeming like an attractive market to set up operations." Mediaturf is servicing clients mainly in the financial segment such as Citibank and Prudential ICICI.