Omnicom hikes stake in Mudra, Anil Ambani joins advisory board

Omnicom Group Inc announced today it has entered into an agreement to acquire a majority stake in Reliance ADA Group owned Mudra Group. Mudra will significantly expand Omnicom’s service capabilities and presence in Asia’s third largest economy. As part of the agreement, Omnicom will extend its partnership with the Reliance ADA Group, says an official press release.

The stake acquisition underlines the importance and commitment that has being accorded by Omnicom to India in the past decade. Earlier this decade, Omnicom was present in India through stakes in TBWA\Anthem, RK Swamy BBDO and Mudra. In 2007, Omnicom first launched OMD, their media agency, shortly before increasing their stake in TBWA India to 100% and setting up a new unit, BBDO India, while increasing their stake in RK Swamy BBDO as well. Omnicom also set up the India office of their media services agency, PhD, earlier this year.

Omnicom has, in comparison to Martin Sorrell’s WPP, been slow off the blocks in their India strategy, and the recent aggression goes a long way in their playing catch-up.

Mudra Group operates in India though four agency networks: branding and communications agency Mudra India; marketing and advertising agency DDB Mudra; integrated engagement and experiential agency Mudra Max; and Ignite Mudra, an agency that caters to entrepreneurs. Mudra has 26 offices across the country.

Reliance Group Chairman Anil Ambani will join the Omnicom International Advisory Committee.

“This acquisition is an important step in achieving Omnicom’s strategy to extend and deepen our presence in rapidly growing markets,” said John Wren, President and CEO of Omnicom Group. “Our vision is to be a source of innovation in every market we serve. Mudra is widely acknowledged as an outstanding company with impressive creative product and expertise in a broad range of disciplines. Mudra’s innovation and depth of talent will strengthen our business capabilities not only in India but around the world.”

“DDB has been an excellent partner over the years. We have benefited immensely from the collaboration and transfer of knowledge from around the globe. We are proud to belong to such a storied network,” Mudra Group CEO Madhukar Kamath said. “Omnicom and DDB have clearly been the inspiration for Mudra Group’s transformative growth over the last five years. My colleagues and I look forward to the next decade of explosive growth in the Indian market.”