Mudra is celebrating its silver jubilee this year and Madhukar Kamath, Managing Director & CEO, Mudra Communications, is proud of heading the largest Indian-owned and managed agency. Joint venture partner DDB has also been increasing its involvement with the agency over the past couple of years. Early this year, Keith Reinhard, Chairman DDB Worldwide, also visited India.
What is interesting about the agency is the fact that it will soon pitch, with other agencies, for the creative business of Anil Dhirubahi Ambani Enterprises (ADAE), its promoters who own a 90 per cent stake. Kamath himself is unruffled about the pitch and believes his is a professionally run agency where only 10 per cent of the business comes from Reliance.
Kamath, who recently attended DDB's global conference in Shanghai, talks about the way forward for his agency.
Mudra has turned 25 this year. What are the challenges ahead and what will be the strategy going forward?
There are numerous opportunities open to keen and able players in this business. The last 25 years have been a wonderful journey for Mudra. Growing out of a small office in Ahmedabad into what we are now, one of the largest marketing communications groups in the country.
We are concerned with the fundamental issue of the value we can bring to our clients' businesses. Our strategy is geared to the realities of the business environment that we operate in - from building competencies that are relevant to marketing challenges to raising the bar on the definition of creativity and its application to businesses, we have a lot of opportunities going forward.
Our immediate focus is on providing our clients with Total Branding Solutions (TBS) so that they have the benefit of top-quality thinking that is media-rich, and goes beyond the conventional offering of an advertising agency. We have established and are continuing to build a suite of marketing services competencies that are best-in-class in this market. The TBS offering is a very exciting one. And we're all aligned towards that in the Mudra Group.
What are the new areas of communication Mudra is looking at? Will acquisitions lead it to enter these new areas considering it just acquired Kidstuff Promos & Events?
We have started on the journey from being a conventional advertising agency to a marketing communications group. The idea is to offer our clients the entire suite of competencies that are relevant to their marketing communications needs. With fragmenting media apertures, the incredible pace of technological growth, cultural and demographic changes, it's become imperative for us to build expertise that can cater to this reality.
Like I said before, TBS is our focus, and we have been and continue to be open to any acquisitions, partnerships and alignments that will help us strengthen the offering.
TBS is your agency's non mass-media, below-the-line communications services - how do you intend beefing up its services considering the current demand from clients to look at non-conventional ways of advertising?
TBS goes beyond a marketing services offering; it is the entire suite of competencies including conventional mass media advertising. The concept is client-/ brand-/ idea-focused rather than being just a marketing services offering.
It's important to see this in context. It's not merely a response to client's spending in a particular direction. It is an acknowledgement of the fact that some apertures need specialist skills - skills that are of value to a marketing communications effort. We constantly seek the best talent in each of these businesses, and bring the best of class thinking from world-class players. Rapp Collins and Tribal DDB India are examples of this intent. We will continue to offer the best to all our clients and create an environment where talent can flourish.
From where will the money come for all your future acquisitions? How involved is your partner DDB in the process of buying these companies?
Mudra is a well-managed, financially strong company. Our retained earnings will help us fund our future activities including acquisitions.
DDB is actively involved in the advertising business, and in Rapp Collins India and Tribal DDB India. We continue to look for opportunities with businesses in the Omnicom group in multiple areas including design and branding, health, promotions, public affairs and others.
With the Reliance Group being divided between the two Ambani brothers, are any repercussions on Mudra expected? How involved is Anil Ambani with the agency's functioning?
ADAE is the majority shareholder in the company. How Mudra is run is a great example of a professionally managed company where ownership and management are clearly, distinctly, defined.
Considering Reliance Infocomm is now supposedly with Anil Ambani, will Mudra regain the entire business of the telecom operations considering other agencies such as Ambience Publicis had got parts of the ad pie?
The media business of Reliance Infocomm is being managed by OMS, our media services agency. The creative part continues to be managed by Saatchi and Ambience Publicis. We are proud of the role we played in launching the brand and look forward to working on the brand in the future.
In the past, you had mentioned acquiring a second agency brand. Why do you want to acquire a new ad agency when you already have Interact Vision in your fold? Why has this second agency kept such a low profile all these years? What are your plans for Interact Vision?
Building a strong second national brand is an ongoing exercise. We are open to acquisitions and alignments in this regard. Meanwhile, we are embarking on creating strong regional agency brands. Interact Vision is our offering primarily for the North and East. We should be in a position to announce one for the West in the near future.
How will your new logo get incorporated in all your communication brands and what are the synergies it will provide for the agency?
The new identity is for the Mudra brand. A 25-year-old brand that stands for certain values which we are all very proud of. The new identity epitomises our intent going forward into the future. It is the graphic representation of the spirit that we will foster to take the brand to the next level and is already an integral part of the agency's identity.
Why does Mudra want to remain without any global affiliations for its media business considering DDB has a small stake in its mainline advertising agency?
We have a point of view, a belief, on how to build our media business. Brand integration is a major thrust area for our media business, going into the future. We have big growth plans for the media business. We are open to global partnerships as long as they are in alignment with our thinking.
Is having a DDB connection helping the agency today? What are its plans on offloading the stake in future, especially when DDB had made some claims about its impending plans to enter the Indian ad industry by itself?
We share a wonderful relationship with DDB. I am not aware of the plans you are referring to. DDB is easily the most well-rounded of the global agency networks, by virtue of its domination at not just Cannes, but also the IPA (Institute of Practitioners in Advertising) and other effectiveness awards. Truly a partner to grow with.
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