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NS Publicity acquires ad rights for 106 utilities in NDMC area
As part of a deed agreement valid for 10 years, the marketing rights have been transferred to NS Publicity from Hythro Engineers, a company specializing in projects that include construction and maintenance of public utilities
Jaipur-based NS Publicity will acquire ad rights for 106 utilities in the New Delhi Municipal Corporation (NDMC) area, with effect from April 1. As part of a deed agreement valid for 10 years, the marketing rights have been transferred to NS Publicity from Hythro Engineers, a company specializing in projects that include construction and maintenance of public utilities and garbage stations. Hythro Engineers had earlier won the rights for all the utilities in two separate bids, on BOT (built, operate, transfer) basis.
The deal has been struck for two sets of public utilities. As part of the first bid, in 2007, for a period of ten years, Hythro had acquired the ad rights for 46 NDMC public utilities on BOT basis. In the second bid early this year, it had acquired the ad rights for another set of 60 public utilities in the NDMC area. All the utilities will be functional within a month. With an area of 200 sq ft, each utility will offer ad display options on the outer walls. The combined worth of the acquisition is Rs 100 crore approximately.
While Hythro will continue to pay all the dues including license fee to NDMC, NS Publicity has agreed to pay a fixed annual amount to the company for the duration of the agreement.
Currently, 197 JCDecaux bus shelters in central Delhi are the only media option available in the NDMC area. The utilities are located in prime locations, such as Connaught Place, India Gate, Khan Market, Jor Bagh and Pandara Road. Therefore, the costs will be on the higher side, ranging between Rs 1-5 lakh per month.
According to Maheshwari, telecom players would be interested in taking up space on these utilities.
This deal marks the second big win for the outdoor company in Delhi. In November, afaqs! reported that NS Publicity had won the advertising rights for the Delhi Metro Rail Corporation (DMRC) civil structure for eight years, on the route from RK Ashram to Dwarka.
NS Publicity, a Rs 200-crore company, has a market share of 85 per cent in Rajasthan, with an inventory base of skywalks, gantries, innovative display towers, designer unipoles and benches.