Sandeep Goyal to resign from Dentsu India’s Chairman position; Tanya Goyal will also resign from the boards of directors.
BestMediaInfo Bureau | Delhi | January 31, 2011
Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tatsuyoshi Takashima; Head Office: Tokyo; Capital: 58,967.1 million yen; hereinafter “Dentsu”) announced today that it has purchased the respective 26% equity stakes held by Mogae Consultants Pvt. Ltd. (President: Sandeep Goyal; Office: Mumbai, India; hereinafter “Mogae”) in Dentsu Communications Pvt. Ltd., Dentsu Marcom Pvt. Ltd. and Dentsu Creative Impact Pvt. Ltd., three full-service advertising agencies established as joint ventures between Dentsu and Mogae.
As part of a strategy to grow the Dentsu brand in India, the three companies, together with other companies under the Dentsu Communications umbrella that includes Dentsu Mediatech and Clickstreamers, were integrated into an organization referred to as the Dentsu India Group.
In accordance with the terms of the transaction, Sandeep Goyal, the incumbent Chairman of the Dentsu India Group, will resign his position. He will also resign from the boards of the three advertising agencies. Goyal will, however, continue to support the Dentsu India Group as its Founder Chairman. Tanya Goyal will also resign from the boards of directors and will become a Principal Advisor to the Dentsu India Group.
Since the establishment of Dentsu Communications and Dentsu Marcom in 2003, and Dentsu Creative Impact in 2005, Dentsu has been steadily expanding its business in India through the three agencies. In view of the recent growing importance of the Indian market, however, and faced with the need to provide an increasingly higher level of unique services to its global clients, Dentsu decided that the time had come to make the joint-venture companies into wholly-owned subsidiaries. With this move, Dentsu will be able to positively expand its business domain from advertising to other areas such as sports and digital-related services.
According to the December 2010 edition of Advertising Expenditure Forecasts published by ZenithOptimedia, India’s advertising market, which grew slightly in 2009 to US$4,463 million, is expected to grow 13% in 2010 and 13–15% in 2011–2013, year on year. The total projected market size of US$7,548 million in 2013, an increase of 69% when compared to the 2009 figure, will make India one of the world’s leading advertising markets.
Yuzuru Kato, the Dentsu Inc. Executive Officer in charge of global business development, said, “By making these three companies wholly-owned Dentsu subsidiaries in the rapidly developing and increasingly important Indian market, we aim to enhance our infrastructure to provide the best integrated solutions to our clients in all the business domains. Focusing on the area of communications, we will implement marketing communication strategies that solve the management and business issues facing advertisers and media content companies today. Ideas that reach beyond the imaginable. Technology that crosses the bounds of possibilities. Entrepreneurship that surpasses the expected. We will use these three sources of strength stated in the Dentsu Group Corporate Philosophy to create innovation.”