"I see Bates as an independent entity in India": Rajiv Agarwal

For Bates India, the last month or so has been a period of great uncertainty. Uncertainty that stemmed from the sell-off of beleaguered parent, Cordiant (Communications Group). Uncertainty that stemmed from bids and counter-bids by rival networks WPP and the Paris-based Publicis Groupe. Uncertainty about the very future of the agency and the Bates brand, irrespective of which network ultimately bought over Cordiant.

And Rajiv Agarwal, managing director & CEO, Bates India, is the first to admit to that uncertainty. "It definitely was a period when most things that we had planned for the agency in India were put on hold," he says. "We were simply waiting for some outcome, any outcome, before we went ahead and did something. Now, finally, we can get back to business, and that I am thankful of."

If the waiting-to-exhale agency's Indian office is once again astir, it's because in the battle for Cordiant, Sir Martin Sorrell-owned communication conglomerate WPP has triumphed over Maurice Levy-owned Publicis Groupe. Last week, WPP acquired Cordiant by outbidding Publicis; the London-based network would be coughing up £266 million as a part of the deal.

Which, in effect, would make Bates a WPP Group agency.

While the news that the agency once again has a parent (that too in the form of the world's largest agency network) should come as a relief to Bates India, it's perhaps too early to dismiss the cobwebs of uncertainty. For the simple reason that no one is quite sure if Sir Sorrell will choose to keep an independent Bates network in circulation (already, according to media reports, a few of Cordiant's other agencies such as Scholz & Friends and George Patterson Bates have been put on the block). Speculation is rife that WPP might merge Bates with one or the other of its existing global agency networks, be it J Walter Thompson, Ogilvy & Mather, Y&R or Red Cell.

Then there is this whole issue of what would happen to media specialist company Zenith Optimedia (in which Cordiant has a 25-per cent stake), post the WPP takeover of Cordiant. Media planning and buying giant MindShare, as we all know, is a lead WPP company, which puts a question mark on Zenith Optimedia's role in the WPP constellation. And to complicate matters further, the remaining 75-per cent stake in Zenith Optimedia is held by Cordiant's rival suitor, Publicis.

Looking at the speculated ‘merger' of Bates from the Indian point of view, the imponderables actually multiply. For if - and right now it's a big if - WPP does go ahead with the plan to merge Bates with an existing agency network, when it comes to India, the conglomerate has multiple options vis-à-vis Bates India. While JWT India, O&M India, Rediffusion-DY&R and Equus-Red Cell are always there, WPP could also consider a merger with Contract Advertising (which itself is a JWT subsidiary) or rmg david (O&M's subsidiary).

Agarwal, however, does not think things will come to such a pass for Bates India. For one, he believes that Bates is a fairly strong agency brand in the country, as well as in Asia. "Bates is very big in Asia, a fact that Sir Sorrell himself has often acknowledged," he says. "So, while Bates might be merged with some other WPP group agency in some markets, the scenario in Asia is different." Specific to India, Agarwal also feels that Bates' historical standing (in the form of Clarion) will stand the agency in good stead. "Bates is hugely respected by clients in India, and has a fair reputation to speak of."

Also, a merger with one or the other entity need not necessarily be an easy one, as issues such as potential conflict and clients' comfort levels need to be resolved. "JWT and O&M are big agencies, and a Bates is not likely to add value to either," Agarwal points out. "Y&R is a possibility, but Rediffusion is already a strong partner. Red Cell already has a partnership going with Equus, and Contract is also a solid independent agency. The way I see it, a merger will only result in a loss of value." Ultimately, the fact that WPP has a number of independent agencies operating in the same market is something that gives Agarwal confidence. "We'll all be in the same market competing against one another, the way WPP's existing agencies are. I really cannot say for sure, but I see Bates as an independent entity in India."

However, when it comes to Zenith Optimedia's India operations, Agarwal refuses to comment categorically. "We really have no idea what direction Zenith would take," he says. "Those who own the business will have to take a call on the company." He does, however, say that the status quo would be maintained "in the foreseeable future" - although he also admits that it's only a question of time before Zenith becomes a media independent. As and when that happens, Bates would, in all probability, start working closely with MindShare. "But till such time that something concrete happens for us to act otherwise, Zenith is very much Bates India's responsibility. Our mandate is to make Zenith Optimedia take wing in India, and we will do that to the best of our ability," he asserts, scotching rumours of Tapan Pal's (president & CEO, Zenith) resignation.

For all the uncertainty, Agarwal insists that things are looking up for Bates India. "We have picked up new business across our offices, be it Catch, indiatimes and Businessworld in Delhi, or SBI Mutual, Trent (Tata Retail Enterprises) and more business from Tata Chemicals in Mumbai. Most of these businesses have come on the back of extended, multi-agency pitches." He also points out that the national rollout of 141 (Cordiant's below-the-line outfit, currently operational in Kolkata) and the launch of Healthworld (Cordiant's healthcare division) in India are "definitely on the cards, though both were put on hold because of the past month's developments". Agarwal also indicates that Fitch, Cordiant's design consultancy, might be unveiled in the country, "though it is not top priority".

"We have been going forward in inches when there's a need to leap," he says. "We have all the talent that is needed, so I believe that we haven't tried enough." Agarwal thinks it is all coming together now, especially with the creation of the 12-member executive committee, comprising agency and business heads and key creative people. "The executive committee has been created to focus on three areas - acquiring business, sustaining business and growing business. I have a vision for Bates, but all in the executive committee will have to buy into it to help take it forward," he says. "I want each of the 12 members to play a dual role in taking the agency forward. While one role would entail doing what they are currently doing, the other would be taking up parallel responsibilities, be it in areas like training or in building projects or new divisions ground up. I am happy I have the full support of the committee in this."

Agarwal would need every bit of that support if he is to fulfill his ambition of making Bates India the "No. 10 or No. 11 agency in two years". But then, WPP can still force a change in the best-laid plans… © 2003 agencyfaqs!