GroupM is increasing its investment in MediaCom India to a controlling interest to allow the agency to "access and tap into the global reach and infrastructure of GroupM", according to the company.
MediaCom India is a joint venture of GroupM and Sam Balsara, the principal shareholder of the Madison Media group. Balsara and his family held a controlling stake of 51 percent with WPP holding the remaining 49 per cent.
Speaking to Campaign India today, Balsara said the latest development was in line with the original agreement in 2008, and that GroupM is increasing its stake to 74 percent. Balsara and family will hold the remaining 26 percent.
The acquisition is part of WPP's strategy to invest in fast-growth markets, it said in a release. Founded in 2007, MediaCom India employs about 170 people and has offices in Gurgaon, Bangalore and Mumbai as well as a representative office in Chennai.
Clients include Dell, Edelweiss, Future Group, Makemytrip.com, Mars, Pedigree, Piaggio, P&G, Royal Enfield, SAB Miller, Tata Docomo, Urban Ladder, Wellspun and Wrigley’s.
MediaCom India's revenues were around INR 700 million (US$10.2 million) in 2016 with assets of INR 90 million (US$1.32 million) as of the same date.
Update, 3:50 pm: Added comments and ownership percentage obtained by Campaign India from Balsara.