Martin Sorrell, one of the best-known and most powerful men in advertising and the chief executive officer of global advertising and communications conglomerate WPP Group Plc., wants his empire in India to grow even larger than it is. WPP controls the majority stake in the Indian arms of several large agencies including Ogilvy and Mather and JWT, but Sorrell, who spoke to Mint on the sidelines of advertising’s annual jamboree at Cannes in June, says he would like a controlling stake in Rediffusion DY&R, too. And that he would like to acquire firms affected by a possible slowdown in India. Edited excerpts:
What is the group’s priority in India?
The WPP Group’s revenues from India total $350 million. Our current market share is 50%. We are doing extremely well organically; our topline growth is at
Big plans: Martin Sorrell, chief executive officer, WPP Group Plc.
20-25%. Obviously India as a market cannot continue to grow at the same rate throughout. There would be some relaxation at some point of time. But once things start slowing down in India, we think that the competition may give up. We see that as an opportunity. Globally and in India, we are looking at acquisitions across the sphere: advertising, media, public relations, digital, etc. In India, we remain interested in acquiring more equity in Rediffusion DY&R. They went through a sticky patch in the middle, but now have benefited hugely from the LG and Tata Nano win. We have always been interested in Rediffusion and continue to be interested in the same way.
Rediffusion had earlier said it was not interested in selling majority stake to WPP. What’s the status now?
Well, Diwan Arun Nanda (founder of Rediffusion) changes his mind, occasionally. The positive thing would be that they allow us to pick up more equity.
Are you in talks with local start-up agency CreativeLand Asia Pvt. Ltd for an acquisition? Will there be a merger of WPP agencies Grey Worldwide and Equus/Red Cell (Equus Advertising Co. Ltd)?
We were considering a merger for Grey and Equus but there’s absolutely nothing happening on it now. Both these agencies are doing well for us. I wouldn’t know about CreativeLand Asia.
Havas Group chairman Vincent Bollore’s bid for greater representation on the Aegis Group Plc. board has been rejected for the fifth time. How does this effect WPP with regard to your interest in Aegis’ market research firm Synovate?
It’s up to Vincent to decide what he’s going to do. We certainly could use Synovate and if Vincent gets to buy Aegis and wanted to get rid of Synovate, it will be interesting. But it’s hypothetical until he buys them. I have consistently said that I think he will buy them (Aegis). If that happens, Bollore would have to decide how to bring together the other separate parts. If Havas and Aegis were to merge, that makes them a better company and better competitors. The two separate are weaker. So maybe it’s in our interest that they stay apart.