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Dentsu Acquires 51% Stake In Taproot India

Japanese advertising major, Dentsu, has acquired a 51% stake in Mumbai-based Indian advertising agency, Taproot India. Following the acquisition, Taproot India will be a part of the Dentsu Network, but will continue to operate independently under the management control of its current leadership. The exact monetary terms of the deal have not been disclosed.

According to Taproot,partnering with Dentsu will enable Taproot India to offer a more comprehensive bouquet of services to their clients and across larger market geographies. Commenting on the acquisition, Agnello Dias, Co-Founder and Chief Creative Officer, Taproot India said, “While we are doing alright on the creative front, we felt that we needed to add a bit more logistical and service capabilities across markets. With Dentsu as our partner we feel we can scale up several areas
of our operations very quickly without losing what has been working for us so far.”

Taproot informs that the acquisition will have no effect on the creative offering or the nature of the relationships the company share with its clients. Taproot’s clients include PepsiCo, Airtel, The Times of India, Polycab, Marico, Karbonn Mobiles, Myntra.com, Mumbai Mirror, Nirma, DSP BlackRock Mutual Fund, UTV Bindass, and UTV Stars among others. The agency has a team of 33 full time employees.

The Dentsu India Group, which is a wholly owned subsidiary of Dentsu Inc., Tokyo,comprises three standalone full-service advertising agencies—Dentsu Communications, Dentsu Marcom and Dentsu Creative Impact—as well as Dentsu Media and Dentsu Digital.

Dentsu’s other Investments

In July, Dentsu had acquired London headquartered, media buying house, Aegis Group, for approximately GBP 3.16 billion ($4.89 billion approx), as part of a cash deal, making it a wholly owned subsidiary.

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D2 Communications, a subsidiary of NTT DOCOMO in a JV with Dentsu, had invested around Rs 50 crore in Indian mobile messaging and advertising company Affle, following a strategic agreement between the two to provide mobile advertising solutions to companies across Asia.

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