After 37 years of collaboration, one of the most successful advertising agencies in the world, BBDO, and India’s pioneering firm R K SWAMY have chosen to part ways.
The R K SWAMY HANSA group intends to consolidate its many corporate units under one roof, hence the division has occurred for strategic reasons. The partners were able to come to an amicable arrangement because they recognised and respected one another’s strategic objectives. According to the deal, BBDO will purchase R K SWAMY’s interest in R K SWAMY BBDO Pvt Ltd, and R K SWAMY will purchase BBDO’s interest in BBDO India Pvt Ltd.
“We first met when Mr. R K Swamy and I shook hands with Allen Rosenshine, the BBDO CEO at the time, in New York in 1985. We collaborated for four years without a written agreement under a simple understanding. Up to a 75% stake was invested in us by BBDO, which we later acquired back in 2009. Since then time, they have maintained a sizable minority. When BBDO India was established at that time, we acquired a comparable minority ownership in it. It has been a tremendous trip, and BBDO is a brilliant firm. “All good things must come to an end, and in this situation, it couldn’t be more true,” stated Shekar Swamy, Group CEO of R K SWAMY HANSA.
R K SWAMY was a fantastic companion. As they proceed with their goals for their Group, we send them our warmest congratulations and well wishes. I have always respected their devotion to and belief in India’s future and the role they can play in it. It will undoubtedly be fantastic. We have BBDO India, a capable agency. According to Andrew Robertson, CEO of BBDO Worldwide, “We are dedicated to producing excellent work, and this will be the same in India as anywhere.
“The focus of R K SWAMY BBDO is marketing communications. However, our broader efforts include Interactive & Digital, Media Planning & Buying, Media & Market Research, CRM, Data Analytics & MarTech, Healthcare Communication & Continuing Medical Education, Events, and Outdoor. These activities are in addition to Marketing Communications.
“We are delighted that we were able to resolve this amicably. It’s evidence of a fantastic alliance. At BBDO India, we’ve had a tremendous start, and we’re committed to maintain that momentum. According to Josy Paul, Chairman and Chief Creative Officer of BBDO India, “it’s still very much about breaking down the silos of Advertising, PR, Media, Digital, and Activation, and replacing the old model with a new one that is action oriented, that influences behaviour, helps brands build and benefit from communities, and creates social movements.”
The R K SWAMY HANSA Group, a locally owned business that leads in numerous marketing services, has been in existence for 50 years.
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