JWT clarifies position on Vardhman

By , agencyfaqs! | In | September 01, 2003
In a message to agencyfaqs!, JWT reiterates that the JWT-Vardhman split was on amicable terms.

In a message to agencyfaqs!, following the story SSC&B Lintas wins Rs 5-crore Vardhman account (agencyfaqs!, August 28), JWT reiterates that the JWT-Vardhman split was on amicable terms.

In a detailed mail to agencyfaqs!, a senior JWT official points out that the parting of ways was dictated by the company's refusal to accept a new set of terms proposed by JWT in view of changed realities.

JWT writes:

"JWT had been assigned the Vardhman hand knitting yarn business in 1995 and the account was being handled by our Chandigarh office since then. The revenues for this account had been steadily declining in the last two-three years and it reached a point in 2002 wherein it was getting unprofitable to service the account.

"In early 2003 (February-March) we had requested Vardhman to change to a fee-based system wherein we had requested for a fee of Rs 1 lakh/month (this translates to an equivalent billing of Rs 1 crore/year). The client had informed us in March end that owing to the nature of their business they could not commit to this arrangement and thereby we resigned the business as it was becoming increasingly unprofitable for us to continue.

"We parted on very amicable terms and this was purely a business decision for both partners concerned." © 2003 agencyfaqs!

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© 2003 agencyfaqs!