Adman Sandeep Goyal’s Mogae Consultants has acquired Rediffusion, India’s oldest surviving advertising agency and one of the largest independent ones, from cofounders Diwan Arun Nanda and Ajit Balakrishnan in a deal pegged at about Rs 100 crore.
The transaction includes three other brands under Rediffusion —Everest Advertising, Rediff Health and Rediff Direct.
Goyal, who was president of Rediffusion from 1997 to 2001, has taken charge as managing director of the group with immediate effect. He told ET the company will expand into media buying, digital, social, performance and other businesses. It plans to recruit a media head and other key executives in the next one month.
Nanda will continue to mentor the agency and stay on as chairman.
“We have decided to take a step back from all day-to-day operations. I will be available to help in the areas where I am needed, but we are handing over the charge to Sandeep,” Nanda told ET. “I have known Sandeep since the 1990s and he has worked with us for many years, including as president.”
Balakrishnan will focus on Rediff.com, the technology world and public service and will be available to Rediffusion for guidance.
Rediffusion was founded by Nanda, Balakrishnan and Mohammed Khan in July 1973. Khan left in 1983 to start his own venture.
Rediffusion first diluted stake in 1994, when Japanese ad firm Dentsu and Young & Rubicam bought 20% each in the agency, which was then rebranded Rediffusion DY&R. Nanda and Balakrishnan bought back the stake from Y&R and Dentsu in 2018.
“Being the largest independent agency is not good enough. We have to be the best, which I think we are in terms of creative work. We want to continue to set new standards,” Nanda said.
He added that Rediffusion has been known for “advertising that became famous and part of the language and the culture of the people” and has helped brands build long-term and lasting equity with consumers.
“I have utmost respect for what Diwan Arun Nanda has created. He is a true legend of India’s advertising industry,” Goyal said.
Rediffusion created some iconic and memorable advertising for companies like Jenson & Nicholson (Whenever you see colour, think of us), Eveready (Gimme Red), Godfrey Phillips (Hum Red & White peene walon ki baat hi kuchh aur hai), Tata Tea (Annu, taazgi de de), Tata Sky (Isko laga dala, toh life jhingalala), and Lakmé (Is it bad to look good?).
The agency also launched brand Airtel in 1995 and it currently works with Tata Sons, Parle, Tata Trusts, Tata Motors, State Bank of India, Sun Pharma, Audi India and others.
Source: Economic Times