NewswireToday - /newswire/ -
Tokyo, Japan, 2013/05/23 - Dentsu announced that its subsidiary in India, Dentsu Media & Holdings India Pvt Ltd has reached an agreement with venture capital & private equity firm Capital 18 & other shareholders of Webchutney Studio (P) Ltd to acquire an 80% stake in Webchutney. Tokyo: 4324
Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 58,967.1 million yen) announced today that its subsidiary in India, Dentsu Media & Holdings India Pvt. Ltd. (hereinafter “DMHI”), has reached an agreement with venture capital and private equity firm Capital 18 and other shareholders of Webchutney Studio Private Limited (hereinafter “Webchutney”) to acquire an 80% stake in Webchutney. Under the terms of the agreement, the company will become a wholly owned subsidiary of DMHI by 2017.
Webchutney is a digital creative agency in India which has won more than 70 awards at industry events and advertising festivals both within India and overseas since its establishment in 1999. It will become part of the Dentsu India Group of companies which operate under the umbrella of Dentsu Aegis Network Ltd., the Dentsu Group’s global operating unit headquartered in London which oversees all of Dentsu’s business operations outside of Japan.
In August 2012 Dentsu acquired Taproot, a leading creative agency with an impressive roster of blue-chip clients that include major companies in India as well as multinational companies. Since Webchutney also has many prominent local and global brands as key clients, its addition to the Dentsu India Group will further expand the Group’s client base.
Through effective use of Webchutney’s strengths in digital strategic planning and innovative ideas to provide outstanding digital creative solutions, the Dentsu India Group aims to attract long-tail clients, a fast-growing client group in India and neighboring countries.
The provision of high-quality solutions to clients through collaboration of the diverse capabilities of all the Dentsu India Group companies is expected to contribute to the enhancement of the value of the Dentsu brand.
The impact of this transaction on Dentsu’s consolidated financial results for the fiscal year ending March 31, 2014 is expected to be minimal.
Profile of Webchutney
Company Name: Webchutney Studio Private Limited
Location: New Delhi, India
(Branch offices in Mumbai and Bangalore)
Date of Establishment: April 1999
Capital: 3,390, 000 Indian rupees
Shareholding Ratio*: Dentsu Media & Holdings India Pvt. Ltd. (DMHI) 80.0%
Webchutney Studio Private Limited management 20.0%
*After acquisition has been completed
Gross Profit: Approximately 171,200, 000 Indian rupees
(Fiscal year ended March 2013)
Principal Management Personnel: Sidarth Rao, Co-founder, currently CEO
Sudesh Samaria, Co-founder, currently National Creative Director
Number of Employees: 199 (as of September 30, 2012)
Line of Business: Digital creative.