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WPP in talks for acquisitions in India: CEO

WPP in talks for acquisitions in India: CEO
PTI
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First Published: Sun, Aug 21 2011. 03 24 PM IST
Updated: Sun, Aug 21 2011. 03 24 PM IST
New Delhi: One of the world’s largest media and communication groups, WPP Plc is eyeing acquisitions in India and is holding talks with a few companies here for that, according to its chief executive Martin Sorrell.
On the back of the acquisitions and its organic growth, WPP expects revenues in India to touch the $500 million mark next year from $450 million this year.
“We are doing acquisitions here and are currently involved in one or two discussions. We are hoping to do revenues of $500 million next year, which will be both through acquisitions and organic growth,” Sorrell told PTI.
He said the group is likely to make some acquisition announcements within this year itself.
“The size of the acquisitions would be small though, but I think all the good things come in small packages,” Sorrell said.
He said the focus areas for WPP in India are advertising, media investments management, consumer insights, public affairs and public health-care communications.
WPP has a history of acquisitions in India, which includes picking up of 75% stake in online media agency Quasar in 2007 and takeover of advertising agency Enterprise Nexus in 2005.
Commenting on growth prospects, Sorrell said: “We have revenues of about $450 million in India and are growing about twice the rate of the Gross National Product (GNP) rate in the country. So if the GNP growth is 7%, we are growing at 14-15% with organic growth being the key.”
Besides growing India business, WPP is also increasingly servicing its global clients overseas.
“We serve Lenovo from here and are also building a team to serve Ford...we do a lot of digital and software outsourcing to India,” he said.
The group currently employs over 10,000 people in India and according to Sorrell retaining talent is the biggest challenge that WPP is facing in the country.
The WPP group operates a host of businesses in India, including flagship agencies like O&M, JWT, GroupM, The Kantar Group, Bates India, Rediff D & Y and Grey Wordlwide.
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First Published: Sun, Aug 21 2011. 03 24 PM IST