New Delhi: Delhi-based online creative and technology services firm Design Mechanics, has entered into a joint venture with US-based CineMaya Media Group (CMG), a top entertainment, media, and advertising company serving the South Asian community in North America.
“The alliance would give us a foothold in Mumbai, the advertising and entertainment hub, through the newly-established India headquarters in that city,” said Pankaj Kakkar, chief technology officer and co-founder, Design Mechanics. He added that sales support from CMG’s New York, San Jose, and Toronto offices is expected to benefit Design Mechanics’ top lines as more North American business gets routed to its new Indian division.
Kakkar told Livemint.com the JV would be an equal partnership, but decined to mention the quantum of investment. The new company will be called Design Mechanics India Pvt. Ltd, and would have offices in Delhi and Mumbai.
CMG chose Design Mechanics for its strong antecedents, the business synergies it offers with and the fact that business graph has been on an upward trajectory the past few years. CMG is foraying into India to tap its flourishing entertainment and media (E&M) sector.
According to a PricewaterhouseCoopers (PwC) report, the Indian E&M industry in 2005 was worth around $8 billion (Rs32,950 crore) and is growing at 19% CAGR. In comparison, the Internet advertising industry is expected to increase over 300% between 2007 and 2010, a compounded annual growth rate of 50%. CMG’s clients include DIRECTV, Air France, Indus American Bank, Yatra.com, Shaadi.com, Jet Airways, Fropper.com, TeenPatti.com, and Starcom Mediavest Group among others.
“We fit well into CineMaya’s portfolio of media, entertainment, advertising and marketing services, and together, we can offer clients a cross platform advantage of a full-service advertising agency in Elephant Advertising, CMG’s advertising division, and a full-service online creative & technology shop in Design Mechanics,” said Nitin Ahlawat, chief creative officer and co-Founder of Design Mechanics. “This combination would surely result in one of the best creative and technology firms servicing the Internet and E&M sectors.”
Nayan Padrai, president, CineMaya Media Group, said: “This union is ideal as we plan to increase market share in the rising Internet and E&M sectors in India, and within the Indian Diaspora globally by utilizing Design Mechanics’ creativity and technological solutions to top brands.”