Dentsu buys out Mogae’s stake in Indian operations
31 Jan 2011
The US arm of the Japanese advertising major Dentsu Inc has bought out Mogae Consultants' 26-per cent equity stake in its India properties, Dentsu Communications, Dentsu Marcom and Dentsu Creative Impact, Tatsuyoshi Takashima, president and CEO, Dentsu Inc announced today.
The three advertising agencies, established as joint ventures between Dentsu and Mogae, along with other companies under the Dentsu Communications umbrella namely Dentsu Mediatech and Clickstreamers have now been integrated into a single organisation called the Dentsu India Group.
The buyout is a step towards growing the Dentsu brand in India in view of the country's growing importance as an advertising hub. The company said it also plans to expand its business domain from advertising to other areas such as sports and digital-related services.
''By making these three companies wholly-owned Dentsu subsidiaries in the rapidly developing and increasingly important Indian market, we aim to enhance our infrastructure to provide the best integrated solutions to our clients in all the business domains,'' Yuzuru Kato, executive officer in charge of Dentsu Inc's global business development, said.
In accordance with the terms of the transaction, Sandeep Goyal, chairman, Dentsu India Group will step down as the chairman and will also resign from the boards of the three advertising agencies. Goyal will however continue to support the Dentsu India Group as its founder chairman.
Tanya Goyal will also resign from the boards of directors and will henceforth act as a principal advisor to the Dentsu India Group.
Dentsu Inc had commenced India operations in 2003 with Dentsu Communications and Dentsu Marcom. Dentsu Creative Impact was established in 2005.
