As part of the agreement, four agency brands-Rediffusion, Everest Advertising, Rediff Health and Rediff Direct-are being bought by Mogae Media, which is owned by former Rediffusion employee Sandeep Goyal.
All the four brands will operate as independent agencies. According to the executive privy to the development, the entire buyout is estimated to be in the range of Rs75 crore to Rs100 crore which will be executed in two to three years.
As part of the deal, Sandeep Goyal, who also served as president of Rediffusion (1997-2001) before starting his entrepreneurial journey, will come back as Managing Director of the agencies.
Over the years, Rediffusion has created some of India’s most iconic and memorable advertising campaigns for brands such as Jenson & Nicholson, Eveready, Parle, Garden Vareli, Godfrey Phillips, Tata Tea, Lakmé, Telco (Tata Motors), Colgate Palmolive, Citibank, and Maruti Suzuki. Rediffusion also launched the brand Airtel in 1995.
The agency currently works with Tata Sons, Parle, Tata Trusts, Tata Motors, State Bank of India, Liebherr, Larsen & Toubro, Brookfield, Orra, Eveready, Dey’s Medical, Sulekha, Danone, Sun Pharma, Dr. Reddy’s, and Audi India, among others.
Commenting on the development, Rediffusion chairman Diwan Arun Nanda said Rediffusion has been known over the years for advertising that became famous and part of the language and the culture of the people.
“It has helped brands build long-term, and lasting equity with consumers,” said Diwan Arun Nanda.