The Rs 700 crore advertising agency Mudra Communications Ltd. has set up a second agency called Infinity to handle its conflicting businesses. It is understood that the agency has been primarily set up to handle the Rs 27 crore Philips consumer electronics business as Mudra already handles the communications business of the Korean consumer durables giant Samsung.
It may be recalled that the Philips account moved from EuroRSCG to DDB Needham in January this year as result of a global re-alignment of the business. In India, DDB Needham has a presence through Mudra where it holds a minor 10 per cent stake. It is said that DDB Needham also has a stake in the second agency.
Headquartered in Mumbai, Infinity is headed by Vijay Nagrare, an old Mudra hand based in Ahmedabad for many years. Nagrare, who has now shifted to Mumbai, was unavailable for comments. Meanwhile, though Infinity has been set up, the Philips account is yet to move. Rumours are that the client may be reviewing its decision to shift the account in India.
Senior Philips and EuroRSCG officials, however, say that the company in India is bound by the global re-alignment decisions and there has been no change in the earlier decision up till now. The Philips official says that preparations are on to move the business next month. He, however, adds that it is difficult to say whether only the creative business will move or the planning and buying would also move to the new agency.