Channel: Companies

July 02, 2010
India fuels WPP growth
 
 

The world’s leading advertising and marketing services group, WPP has seen positive growth in May 2010, the first time after the downturn of November 2008. India was one of the best markets for WPP. The only other country where WPP performed well was Russia. WPP’s Indian operations have contributed around 3.5% to their total revenues in 2009. WPP’s Indian operations revenue stands at $ 400-million in 2009. It is expected to reach up to 5% in 2010. In the first two months in 2010, the business is up by 7% in India.Hence WPP has a very significant share in India and it is one of the high growth nations for them.


WPP’s advertising and media investment management grew by 5 per cent in the past two months whereas their ‘consumer insight’ business, including market research, was up by more than 5% in April and May 2010. Russia and India were the best markets for WPP though US also showed signs of improvement. WPP’s focus will be on three things BRICs and the ‘Next 11 Markets’ (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam) and new media.BRICs and the ‘Next 11 Markets’ now represent almost 27% of the (WPP) group’s approximately $13-14 billion pro-forma revenue. New media and the application of technology also account for almost 27% of group revenues.


WPP comes from ‘Wire and Plastic Products’ which was the founding company for what we now know as one of the world’s leading advertising and marketing services groups. WPP has its presence in 107 countries and a market capitalisation of GBP 7.7b in the end of December 2009.WPP has five of its operations in the top 10 agency groups in the country. Two of its agency groups, JWT and Ogilvy, are among the oldest in the country, as well as being the two largest. Ogilvy, in its first incarnation, D.J. Keymer, entered India in 1928 and JWT followed in 1929.


WPP is scouting for more acquisitions in India. WPP already has a joint venture with Madison World.WPP has Sir Martin Sorrell as its Chief executive. The Indian operations are headed by Mr Ranjan Kapoor, who is the India Country manager and Mr Ajit Chander, who is the Country Director – Commercial and Procurement services. Although WPP is originally a UK company with a global footprint, it has recently moved its corporate base to Dublin, Ireland due to high levels of taxation in the UK. The new UK coalition Government is reconsidering corporate tax profile and has publicly announced that it would like to attract WPP back to the UK.

© Copyright ETI Dynamics Ltd. 2011. You can share articles and reports using the share tools where possible. Please do not cut content from the tiCorridors.com and paste into emails for distribution purposes or on to other websites.

 

© Copyright ETI Dynamics Ltd. 2011. You can share articles and reports using the share tools where possible. Please do not cut content from the tiCorridors.com and paste into emails for distribution purposes or on to other websites.

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