The Hindu Business Line : Situations Ad may sell equity to foreign player

Situations Advertising is planning to offload a part of its equity to a foreign player. The 20-year-old agency with certain big-ticket accounts such as Jyothy Labs and Emami has been negotiating with foreign networks to bring in added value to its existing creative and strategic functions.

Speaking to Business Line, Mr Anjan Chatterjee, Managing Director, Situations Advertising, said, "Much as we would like to dilute our equity, we are also in the process of identifying someone who understands the kind of work we do."

"Apart from just bringing in money, we are looking at an agency that can add value from a knowledge point of view. Today we are in the process of having discussions with a few international agencies."

The Rs 100-crore agency, of late, has bagged accounts such as Dunlop Tyres and Kanchan Home Appliances.

The Rs 10-crore account of Kanchan Home Appliances was bagged from O&M after a multi-agency pitch.

`In tune with Indian psyche'

Adds Mr Chatterjee, "We believe in working with Indian brands and have an understanding of the Indian psyche."

The agency has helped Jyothy Labs grow its brand Ujala and is now helping out with its about-to-be-launched detergent brands.

The ayurvedic soap brand of Jeeva, however, has failed to register significant volumes.

"Today the Jeeva brand is restricted to the southern markets. It is difficult to establish an ayurvedic soap brand."

In the case of Emami's Fair & Young brand targeted at men, the agency believes it has done its bit to ensure that the brand leads ahead of HLL's FAL (Fair & Lovely) brand in the South.

"HLL's men's fairness cream has yet to gain share down South while Emami's share in the same segment still leads," states Mr Chatterjee.

Not for spreading it thin

The Mumbai-based agency does not believe in spreading itself too thin with too many clients.

"We do not believe in being over-ambitious and do not want to pitch too much," says Mr Chatterjee. With operations in Mumbai and Kolkata, Situations Advertising is expected to grow at 10 per cent this year.

More Stories on : Advertising | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page