WPP on buying spree to enter packaging mart

Last week, the WPP group announced its acquisition of four firms in Korea, China and India. Among them was the takeover of Ray + Keshavan Design Associates in India.

The other acquisitions are a 70 per cent stake in Beijing-based Century Harmony Advertising and SRP Corporation and ComHaus Korea in South Korea.

But why does the WPP group need an Indian acquisition when the group's own outfits, such as Landor and Fitch, have been making overtures in the Indian market? Analysts say this is primarily because the group can hit the ground running and recover lost time. WPP executives were unavailable for comment.

The fact is the Indian market for design and branding identity has already attracted a lot of players. Among them are Shombit Sengupta's Shining Emotional Surplus, which was founded in 1984 in Paris.

Shining has been among the pioneering companies in the design space in India doing work for companies, such as Hindustan Lever, Wipro and Mahindra & Mahindra, among others.

Elephant Design, another home-grown firm has worked with companies, such as Bajaj Auto, to overhaul their brand image. Even the brand valuation experts are eyeing this space. Interbrand is reportedly providing design-related services for the Godrej group.

WPP's entry into the space in India comes at a time when the number of brands looking for a makeover is increasing. Some consumer goods brands even change their packaging every six months.

With the acquisition of Ray + Keshavan, a Bangalore-based design firm that offers services like packaging, interactive design, brand identity and environmental graphics, WPP gets ready to access a set of clients (over and above its advertising and media business associates). Ray + Keshavan has a client list that includes Wipro, Infosys and ITC.

Analysts see the Indian acquisition as a move by the company to broaden the scope of services currently offered in the country, as the need for specialised design functions is increasing manifold.

While industry estimates peg the size of the industry for brand identity and package design at a paltry Rs 10 crore to Rs 12 crore, it is a business that is growing rapidly.

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NEW ENTRANT

With the acquisition of Ray + Keshavan, WPP gets access to a set of clients, including Wipro, Infosys and ITC

The Indian acquisition will broaden the scope of services currently offered in the packaging market

The Indian market for design and branding identity has already attracted a lot of players

WPP's entry into the space in India comes at a time when the number of brands looking for a makeover is increasing