Percept, Aegis end 7-year alliance

Percept Holdings and Aegis Group, the UK-based media communications and market research group, have decided to end their seven-year partnership in India.

The joint venture covered three companies in India: media buying house Carat Media; sports, entertainment and sponsorship marketing company PDM India (known as Percept D'Mark); and outdoor media company Posterscope.

Post the split, Aegis Group will have 100 per cent shareholding in Carat India, taking over Percept's 27 per cent stake in the media business.

However, Percept's roster of clients, including ONGC, RBI, and Pantaloon, whose media aspects were earlier managed by Carat, will be transferred to a new media entity being set up by Percept.

Percept will also take complete management control of the event marketing and outdoor ventures. The name of the outdoor venture, in which Aegis held a majority control, will be changed after the proposed restructuring is complete, as Posterscope is Aegis' global outdoor media company.

Charles Jenarius, group chief executive officer, Carat Media India, though admitting that the split would impact revenues for the year, felt that new business wins would minimise its effect.

He said, "While this separation will impact our revenues to the extent of 20-22 per cent, we will more than make up for the loss through our business gains in 2006, amounting to over Rs 200 crore." Some of the recent client wins by Carat Media include Electrolux, Reebok, Rayban and Jyothi Laboratories.

Percept and Aegis first partnered to set up Carat Integra, a media buying company, in July 2000 as Carat's second media services venture in India.

Aegis owned 51 per cent in Carat Integra and managed the joint venture. In October 2003, Carat Integra was merged with Aegis Media's wholly owned Carat Media, with Percept taking a 27 per cent stake in the merged entity.

In 2002, Aegis acquired a 25.1 per cent stake in PDM India, Percept's sports, entertainment and sponsorship marketing company.

In September 2004, Aegis acquired 51 per cent in Percept Out-of-Home from Percept. The company was then renamed Posterscope India.