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Dentsu sets up arm in India for sales promotion

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MUMBAI: Dentsu has set up two companies including a subsidiary in India even as it focuses on Asia as a growth market with particular emphasis on India.

Promo Tec India and Promo Tec Indonesia will start operations from June and are floated to strengthen the group’s activities in the sales promotion domain.

The two new outfits are subsidiaries of Promo Tec Pte. Ltd, a company established in Singapore last October as a subsidiary of Dentsu Tec Inc.

In India, Promo Tec. has 95 per share in the JV while Dentsu Tec Inc holds 5 per cent.

Dentsu said there has recently been a rapid increase in enquiries about the production of premium goods as well as out-of-home (OOH) advertising areas such as store development, in-store promotions, events and corporate identity (CI).

According to the March 2012 edition of Advertising Expenditure Forecasts published by ZenithOptimedia, the size of India’s advertising market in 2011 was $5,87.6 billion, an increase of 9.8 per cent from the 2010 figure. The market is further expected to grow to $6,27.7 billion in 2012, $6,83.2 billion in 2013, and $7,44.7 billion in 2014.

The size of Indonesia’s advertising market in 2011 was $5,11.1 billion, an increase of 18.9 per cent from the 2010 figure. The market is further expected to grow to $6,11.3 billion in 2012, $7,28.4 billion in 2013, and $8,93.1 billion in 2014.

Working in cooperation with Singapore-based Dentsu Asia Pte. Ltd. which oversees operations in the Asian region, the two new companies will provide clients with fast and effective solutions to the growing range of sales promotion needs.

The impact of these transactions on Dentsu‘s consolidated and non-consolidated financial results for the fiscal year ending March 31 2013 is expected to be minimal.

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