MUMBAI: R K Swamy, one of India’s pioneering advertising agencies, and its partner BBDO, a leading global player from Omnicom Group, have decided to part ways after 37 years.
The split has come for strategic reasons as the R K Swamy Hansa group plans to bring its various business entities under one roof. A friendly agreement was reached between the partners as both understood and respected each other’s strategic imperatives, a statement said. Under the agreement, R K Swamy will buy out BBDO’s stake in R K Swamy BBDO, and BBDO will buy out R K Swamy’s stake in BBDO India.
“We have had a great relationship with BBDO. They have been a great partner, allowing us the freedom to expand in areas of relevance and interest to us. We now have a strong media and market research company, a well established data analytics and marketing tech company, a large healthcare communication portfolio, events, activation, outdoor, PR, etc. These are on top of a strong media planning & buying group, digital, interactive & web design, video and of course our creative services. The group collectively would rank within the top few in the country,” Srinivasan K Swamy, chairman of R K Swamy Hansa, told TOI.
Shekar Swamy, group CEO of R K Swamy Hansa, said, “We started the relationship when Mr R K Swamy and I shook hands with the then CEO of BBDO Allen Rosenshine, in New York in 1985. We worked for four years together on a simple understanding without a formal contract. BBDO invested in us up to a majority, which we then bought back in 2009. They have held a significant minority since then. At that point, BBDO India was created and we took a similar minority stake in it. BBDO is a great company and it has been a fantastic journey. The phrase ‘all good things come to an end’ is so true in this case.”
The R K Swamy Hansa group, a homegrown operation now in its 50th year of service, has a wide client portfolio, including institutions at the foundation of the nation, leading private groups, multinationals and emerging Indian brands & businesses. The agency said it has drawn aggressive plans to expand its offerings and the geographic footprint. Andrew Robertson, CEO, BBDO Worldwide, said, “R K Swamy has been a great partner. We extend to them our very best wishes and cheers as they move forward with plans for their group. I have always admired their conviction in, and commitment to, the future of India and the part they can play in it. I am sure it will be great. We have a strong agency in BBDO India. We remain committed to great work, and this will be the same in India as elsewhere.”
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