The Hindu Business Line : `WPP's acquisition of Grey has no implications for India'

WITH WPP having won the bid for Grey Global in a cash and stock deal worth $1.3 billion, the UK advertising giant is not expected to create any ripples in the Indian advertising industry.

Mr Ranjan Kapur, Country Manager-India-WPP, told Business Line, "There are going to be no implications. It is going to be business as usual for Indian agencies."

While the existing WPP agencies such as JWT, Contract, O&M and now Bates, have always been competing agencies in India, the inclusion of Grey Worldwide will be simply that of another competitor, with whom they have already been competing all these years.

Currently, Grey India handles clients such as Hyundai, P&G, Kinetic, Britannia and ITC. Grey had also created the India Shining campaign for the NDA government. When contacted Mr Nirvik Singh, Chairman, Grey Worldwide, South Asia, declined to comment on the issue.

"JWT has always fought tooth and nail with Ogilvy. With the inclusion of Grey Worldwide, such agencies will continue to compete with each other. Besides all these WPP agencies will continue to have the same infrastructure and reporting structure. They will continue to report to their respective headquarters," said Mr Kapur.

For instance, Bates India reports to its headquarters in Hong Kong, while JWT and O&M follow a reporting structure whereby they treat New York as their head office.

None of the Indian agencies, in fact, report directly to Sir Martin Sorrel, Chief Executive of the WPP Group, who is stationed in London.

But in the case of Grey Global, as and when the legislation and shareholder approvals are in place with regard to its acquisition by the WPP Group, it is obvious that Grey Global will have to report to its new owners.

"There is a sale taking place and WPP is the main bidder to acquire Grey Global and when that happens Mr Ed Meyers, Chairman of Grey Global will be accountable to the new owners,'' Mr Kapur said.

The present Chairman of Grey Global, Mr Ed Meyers, will continue his term till 2006 and there will come a time when he will be expected to report directly to Sir Martin Sorrel.

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