Financial Daily from THE HINDU group of publications
Tuesday, Jun 15, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jun 15, 2004 |
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Marketing
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Advertising Corporate - Mergers & Acquisitions Madison hikes stake in Anugrah Vinay Kamath
R. V. Rajan
Mr Sam Balsara
Chennai , June 14 MADISON Communications Pvt Ltd, which holds a 26 per cent stake in the Chennai-based Anugrah Madison Advertising Service Pvt Ltd, has increased its stake to a majority 51 per cent in the agency. Consequently, the stake of the promoter Chairman & Managing Director, Mr R.V. Rajan, will stand at 49 per cent. While confirming the increase in stake, Mr Sam Balsara, Chairman, Madison Communications, said that there would be no change in management and that Mr Rajan would continue to steer the agency. Madison acquired a 26 per cent stake in Anugrah in April 1998 with an agreement to hike stake to a majority holding in five years' time and to 74 per cent in another three years. Mr Rajan pointed out that the two partners enjoyed a good relationship and subsequently the transfer of a further stake was delayed for a year to enable a better valuation. The company's capital stands at Rs 5 lakh. He added that with Madison acquiring a majority stake Anugrah would be able to consolidate its position as a specialist rural marketing agency. Anugrah, while opening an office in Mumbai and appointing an associate in Bangalore to help with business development, would also broaden its focus to film production aimed at semi-urban and rural audiences. "This will be offered as a stand-alone service, not just to clients," added Mr Balsara. The agency would also offer event management services also for clients wishing to tap semi-urban and rural areas. Another area which the agency expects to leverage its expertise is in specially made sponsored programmes for youth in rural areas. It would also look at offering a training capsule for corporates looking at tapping these markets. Anugrah was set up in 1986 as Anugrah Marketing & Advertising Services Pvt Ltd. Its main clients include MRF's Farm Tyre Division, ACC Suraksha Cement, the Chennai-based Shriram group, Jain Drip Irrigation, T.Stanes and Coromandel Fertilisers for its below-the-line activities.
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