Publicis-Omnicom merger triggers top-level churn

The coming together of the world’s second and third-largest advertising networks, Omnicom and Publicis, in a $35.1-billion merger, is resulting in top-level churn in India.

Madhukar Kamath, managing director and chief executive of DDB Mudra Group and someone reported to be a contender for the post of India chairman of the merged entity, has been given a four-year extension at his current organisation. Those in the know say this means now, Kamath won’t be available for the new post.

While Kamath confirmed his extension, he said it had nothing to do with the impending merger.

GAME OF THRONES

• The merger of the two companies is expected to be completed globally in the June quarter this year
• Some names doing the rounds for the top post in India are of Madhukar Kamath, MD & CEO, DDB Mudra Group; Nakul Chopra, CEO, South Asia, Publicis and Josy Paul, chairman, BBDO India
• Last month, the Omnicom-group agency elevated Vineet Bajpai, chief executive of Magnon/TBWA as its overall India head
• Chopra and Paul are the few names left since Arvind Sharma of Leo Burnett and Shiv Sethuraman of TBWA have quit their respective agencies
• The Omnicom-Publicis merger will create the world’s largest marketing communications company

Kamath’s extension has resulted in the exit of DDB Mudra’s chief operating officer Pratap Bose, the second-highest official at the Omnicom-controlled agency in India. Bose admitted Kamath’s extension had prompted his departure, saying he was taking time off to decide on a course of action.

In his absence, Sathyamurthy NP, president & head, DDB MudraMax Media, and Mandeep Malhotra, president, DDB MudraMax, will look after the group’s media and non-media operations, respectively, reporting directly to Kamath. Aneil Deepak, head of ideas (planning & creative) will report to chairman and chief creative officer Sonal Dabral.

The top-level re-organisation at DDB Mudra leaves a handful of names in the race for the post of India chairman of the merged entity, say those in the know. One of these is that of Nakul Chopra, chief executive (South Asia), Publicis, the flagship agency of the Paris-headquartered group. Another name doing the rounds is that of Josy Paul, chairman & chief creative officer, BBDO India.

Chopra and Paul weren’t immediately available for comment.

Those who have dropped out of the race include Arvind Sharma, former chairman & chief executive (India subcontinent), Leo Burnett. After the merger was announced last July, Sharma was seen as a likely contender for the post of India chairman. But the fact that he quit Leo Burnett in October 2013 ruled him out. His replacement, Saurabh Varma, has his hands full as chief executive, say those in the know.

Earlier, Varma was regional chief strategy officer (Asia-Pacific), Leo Burnett, Asia Pacific. He was based in Singapore.

Shiv Sethuraman, another contender for the position of India chairman of the merged entity, quit as chief executive officer of TBWA India. Last month, the Omnicom-group agency elevated Vineet Bajpai, chief executive of Magnon/TBWA (the digital arm of the agency), as its overall India head.

The Omnicom-Publicis merger, which will create the world’s largest marketing communications company, is expected to be completed by the June quarter this year. In a briefing last month, Publicis Groupe Chairman and chief executive Maurice Levy had said the two holding companies had received 14 of the 15 mandatory judicial approvals to go ahead with the merger.

The two holding companies were awaiting a nod in China, and this was expected soon, he had added.