Rediffusion Y&R has sold its stake in Outdoor Advertising Professionals (OAP) to Selvel Advertising and has exited from the joint venture. With this, Selvel Advertising has become the majority stakeholder in the venture. Abhijit Sengupta, who heads the organisation, is the other stakeholder in the business. Rediffusion Y&R had become the third partner in the venture in 2002.
Commenting on the development, Sengupta said, “There has been a lot of contribution from Rediffusion in what OAP is today as an organisation, that was built from scratch. We had lot of learning and sharing. But then focus and priorities change, and this is a result of that. They are exiting as equity holders, but the fact is OAP is still working with Rediffusion Y&R.”
He noted that there will not be any change in the day to day operations of the company as the organisation has been scouting, developing, and managing the entire client protfolio on its own. Observing that this will pave way for the agency to pitch for a wider range of clients, he elaborated, “Since we were and are absolutely independent in operation and infrastructure, this change of shareholding pattern will have no bearing on our functioning and business operations. Rather one positive outcome would be that it will now on give us the opportunity to pitch-in for those accounts where we had restricted entry as they were competing with Rediffusion Y&R’s portfolio. We can also restart the dialogue with those advertising and media agencies which were in need of our services, which we kept in abeyance thus far.”
Noomi Mehta, chairman, Selvel Advertising said, “With the assistance of Rediffusion, OAP managed to introduce a sound and professional system that is high on integrity and ethical values. We are very happy with the outcome of our association in the form of OAP. But from time to time the needs of each organisation change and different priorities emerge. Rediffusion realised this and wanted to do the right thing by exiting OAP and quit as equity partners. But I am sure the tremendous relationship we have built will survive and we will keep working together.”