Publicis to focus on growing India biz

As the world’s third-largest advertising network, Publicis Groupe is keen to expand its business in India at a time when the country is witnessing an intense fight for the number two slot in the field.

Publicis chief operating officer Jean-Yves Naouri said on Monday that his firm would invest in all disciplines in which it is present in the country. “As a market, India is growing in double digits. We want to accelerate the pace with the help of organic and inorganic measures,” he told Business Standard here.

WPP is the largest advertising network in India, followed by IPG, then Paris-headquartered Publicis and its arch rival, Omnicom.

The statement from Naouri, who is second only to Publicis Groupe chief executive Maurice Levy, comes at a time when both Publicis and America’s Omnicom (which is the world’s second-largest advertising network), have been making moves to strengthen their presence in India. New York-based Omnicom recently increased its stake in Mudra from 10 per cent to 51 per cent, while 1926-founded Publicis has begun restructuring operations at group agency Saatchi & Saatchi in a bid to grow the latter’s business in India.

Saatchi’s newly-appointed chief executive officer Matt Seddon, who replaces outgoing CEO Kamal Basu, had earlier told this newspaper that the agency would look at all possible avenues of growth in the country.

Besides Saatchi & Saatchi, Publicis Groupe is represented by flagship Publicis Capital, Publicis Ambience and Leo Burnett. Together with interests in other verticals such as public relations, healthcare, digital and media, the group is estimated to have a total turnover of Rs 500 crore in India.

The 1986-founded Omnicom, on the other hand, has a turnover half of Publicis, while IPG, which is currently at number two position in India, has a turnover of Rs 650 crore, according to industry estimates. WPP, the market leader, has a turnover of Rs 2,000 crore.

Market experts reckon Publicis is in the best position to bridge the gap that exists between between itself and IPG in India, given that it has had a headstart over Omnicom in terms of market expansion. The firm has been steadily acquiring businesses in the last few years. Apart from buying and merging Delhi-based agency Capital Advertising with Publicis India, the French advertising group bought PR agencies Hanmer & Partners and 20:20 Media, social media consulting firm 2020 Social and Mumbai-based healthcare agency Watermelon.

Naouri declined to indicate specific targets for new acquisitions, but said his firm was looking at digital and healthcare among other areas. “These are important segments for us. Digital, in particular, is a priority,” he says.

While India still remains comparatively smaller than China and Brazil in terms of revenues for Publicis, Naouri saud he was optimistic about the market.

“India has significant potential. We want to tap it,” he added.

As a whole, emerging markets contribute between 20 and 25 per cent to Publicis’s overall revenues. This will touch 25 per cent by the end of next year, Naouri claimed.