Dentsu India scouts for a research firm

Dentsu India, the three-year old advertising agency with a capitalised billing of Rs 525 crore, is actively looking out to buy a mid-sized research company.

The agency also expects to acquire stakes in a below-the-line marketing oufit and an events company soon. "We are in talks with several agencies," said Sandeep Goyal, chairman, Dentsu India.

"Research will become an important focus of our business in 2007 and these investments will help us in delivering our larger Dentsu promise, 'communication-without-lines'," Goyal said.

The agency is also said to be setting up Lastminuteinventory.com "� a portal to buy and sell commercial airtime. Goyal, however, refused to share details.

"We are working on various cutting-edge initiatives, and it would be pre-mature to discuss strategies and plans at this stage," he said.

In the next few months, the company will launch Dentsu Digital, its interactive and mobile media division. Though Goyal did not elaborate, he said that Dentsu India will focus on sports marketing as well.

"Dentsu has been marketing sports for nearly 50 years now. It markets The Olympics globally. In India, our focus is cricket and soccer for now."

Meanwhile, the company has already announced its plan to set up Dentsu Creative Impact, the Japanese advertising conglomerate's creative agency brand. For Creative Impact, M Fukada, a senior creative director from Japan is being shifted to India.

"We are also exploring the option to buy out a small design shop for the creative agency," said Goyal. Clearly, Dentsu is focusing on creating more specialised units within its existing structure.

Critics argue that Dentsu's growth in India comes from its internationally aligned Japanese clients which have moved into the agency's fold. However, Goyal said the agency's Japanese business only accounts for about 40 per cent of its income.

Besides Toyota, Honda, Canon, Yamaha and other Japanese clients, it works on a clutch of Indian brands like Raymond Apparel, Tata Tea, Rasna, Amrutanjan, Pass Pass, Jaypee, Jindal, HCC, Biocon and others.

The agency has set up offices in Bangalore, Mumbai, Delhi, Ahmedabad and Chennai. Next year, it is expected to open an office in Kolkata.