Advertising major WPP Group Plc is eyeing a majority stake in Umbrella, an independent brand and design consultancy based in Mumbai.
MUMBAI: Advertising major WPP Group Plc is eyeing a majority stake in Umbrella, an independent brand and design consultancy based in Mumbai. If the acquisition comes through, it would make Umbrella a part of Bates 141, which is a WPP company, sources said.
Umbrella is the agency that was involved in rebranding of Bates141 a few months ago. The advertising agency was earlier known as Bates David Enterprise. The acquisition of Umbrella Design is expected to give Bates an expertise in strategic design consultancy at a time when several companies in India are opting to rebrand themselves to be in tune with changing consumer tastes.
For WPP, this will be its second acquisition of a strategic design agency. In 2006, it acquired Ray+Keshavan (R+K), which is a Bangalore-based brand and design consultancy.
Umbrella is headed by Bhupal Ramnathkar, a veteran in the advertising industry and a former executive creative director of Enterprise Nexus. Ramnathkar and Ramesh Govani (of the Kamala Group) founded the agency in 2004 with the aim to provide creative solutions to clients.
When it had launched, the streams it had set out for included strategic design, advertising, ad-film making, script writing, brand consultancy, etc. But now, the agency has found its forte in specialist design.
It currently offers solutions in corporate identity, retail design, visual merchandising, signage, packaging, brochures and occasionally for ad campaigns.
Umbrella has an office in Mumbai with around 30 employees and has executed projects for American Express, Bates 141, Fun Square, Marriott, The Indian Cancer Society, Reliance Industries, Kalyani, St Bernard, etc.
Earlier, Subhash Kamath, former CEO, Bates141, had told DNA Money that the agency was scouting for acquisitions in the strategic design space.
These acquisitions are part of the agency’s aggressive plans in the retail marketing space, even as it is mulling to introduce specialist divisions for the same.
Jeffrey Yu, chairman, Bates 141 Asia, in an interview earlier had said design would play a crucial role in enhancing the agency’s retail expertise.
However, Ramnathkar neither confirmed nor denied the acquisition talks. “There’s lot happening. It’s not the time, yet,” he said.
He also expressed apprehensions about being a part of an advertising agency since it would not allow him to get independent clients. Sources said Ramnathkar is still negotiating for a good price and his intent is not to allow a complete buyout.
In India, most of the design work is currently done by advertising agencies such as Publicis Ambience (Red Lion), Lowe Lintas (d-Cell), Contract Advertising (Design Sutra) and Mudra (Water).
WPP has been constantly looking out for possible acquisitions in the Indian market.
Martin Sorrell, chief executive, WPP, has said that the company’s growth in Asia would continue despite the global economic slowdown. In an interview to Media, he predicted that the coming year would see an accelerated development of new media companies, particularly in fast-growing markets such as Asia. “Even if growth slows in China or India, it’ll still be 7-9%,” he said.
c_arcopol@dnaindia.net
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