The new unit will be headed by Pratap Bose, who previously headed Ogilvy's outdoor division, Landscapes.
Bose will take over as president of Ogilvy Activation, and JC Giri as country manager.
Apart from Ogilvy Landscapes, units that come together under the new umbrella are the rural marketing arm, Outreach; as well as its events and below-the-line division, Ogilvy Live and Signscapes, a retail identitiy and merchandising division.
Outreach is one of the most respected rural marketing outfits in India, with key clients such as Hindustan Lever, Castrol and ITC.
It operates out of 17 offices that can cover more than one million villages.
Its country manager Dalveer Singh is moving to Indonesia to set up a similar practice, and his role will be taken over by Sandeep Bansal.
Said Bose: "This is not just an amalgamation and consolidation of the different businesses. Instead of working in silos, we will work together to provide an integrated platform for clients' out-of-home needs under the Activation banner."