WPP makes India acquisition

India - WPP has announced its advertising group Grey Worldwide has agreed to take a majority stake in the Delhi-based marketing services company Chateux Hospitality.

Founded in 1998, Chateux Hospitality, which in India operates under the Rams brand name, employs 148 people and holds offices in Mumbai and Bangalore.

The company boasts clients including American Express, GE, GlaxoSmithKline, AIG, Nestlé, Eli Lilly, HP India, and Hero Honda.

The size of the deal is not known, but Chateux is one of the large marketing services companies in the country. For the 2007 full year, Rams' unaudited revenues for the year ended 31 March 2007 were INR123.3 million, with gross assets at the same date of INR211.2 million.

Nirvik Singh, CEO and chairman G2 Asia Pacific and president Grey Group SEA said, the market for activation marketing services in India was growing "exponentially".

"Chateux Hospitality is one of the few players of scale in a highly fragmented market. The co-founders, Sameer Karan Mutreja and Sachin Mutreja are extremely bright, young, and talented entrepreneurs who have penetrated the lucrative hospitality and retail sectors successfully," he said.

"This acquisition will cement G2 India's position as a real player in providing total, integrated solutions to our clients and is totally in line with our aggressive strategy of expanding G2 in fast growing markets."