NEW DELHI: In a departure from its global ad agency arrangements
with DMB&B, Dutch electronics giant Philips India has given its consumer
electronics business to Hindustan Thompson Associates (HTA), J. Walter
Thompson's affiliate in the country.
Ambience D'Arcy won the lighting and domestic appliances business, but
it retained Carat India in line with global media agency
arrangements.
The account is reputed to be worth US$6 million, but Sunil Gupta,
HTA's Mumbai-based vice-president and general manager, added: "Since the
category is highly-active and competitive, the spend will be
commensurate."
Sources said client conflict issues cost DMB&B's Indian affiliate, Mudra
Advertising, the fourth-ranked agency in India, the Philips'
business.
Mudra, which handles competitor Samsung, is understood to have offered
to launch a "made-for-Philips" second agency, an offer which Philips
rejected.
A Philips source said the solution was unacceptable with the current
market situation and the competition in the sector. "We didn't have the
luxury to wait that long," said the source.
HTA's chief executive Mike Khanna said the agency's handling of 12 of
India's top brands was a deciding factor.
