Euro RSCG merges interactive arm with Web-money to form new entity  ( June '8,2001, FE)

IN a strategic move, the Rs 225-crore Euro RSCG has merged its wholly-owned subsidiary Euro RSCG Interactive with Web-money, a recent acquisition, to form a new venture called ‘Euro RSCG Sogo Network’. According to Mr Ishan Raina, chairman and chief executive officer of Euro RSCG for India and the Middle East, the objective behind the move is to beef up the agency’s interactive capability.

Euro RSCG will hold a majority stake in the new entity, which will be headed by Mr Alan Mans, with Mr Himanshu Shah as the chief technology officer.

Last year Euro RSCG acquired Web-money as part of its expansion plans. Web-money is a technology company promoted by Mr Alan Mans and Mr Himanshu Shah. Since then Euro RSCG Interactive and Web-money have done work for clients like Mercedes Benz, Davidoff, RPG group, Kodak India, Air France, Hoechst, Wipro, Parry Nutraceuticals, e-Dakshin, House Layouts and Film TV India.

As for the rationale behind the merger, Mr Raina explains: “The objective is to offer complete in-house execution facility under one single entity. Last year, there was a huge market for design solutions alone. But now clients want complete solutions.”

Mr Raina informs that the new entity will continue to offer all the services that Euro RSCG Interactive did, but will have additional capabilities in terms of new services, expanded manpower, larger client base and greater experience in the business. “In addition, the new entity will also execute projects for the interactive arm of Euro RSCG World-wide. It will also market to clients in India as well as the Middle East,” adds Mr Raina.

One of the new products that Euro RSCG Sogo Network will offer is technology farms which will offer hosting, site management services and technology management services for dotcom as well as bricks and mortar clients.

Commenting on the market for interactive services in India, Mr Mans says: “Now that the hype about the dotcoms is over, it is time for solid, feet on the ground, interactive companies to prove their mettle to bricks and mortar companies. Such companies are open to buying interactive services provided they get end-to-end services at a reasonable price.”

The combined entity will offer turnkey solutions to clients for User Interface Design, content management systems, e-marketing consultancy, back-end system development, among other services.

“We specialise in offering e-strategy and interactive design to our clients. Now we are adding a group of techies who will enable us to execute most of our projects in-house. At Euro RSCG we provide strategy, creative inputs and execution. Our mission is to provide the best of breed strategy and execution in all areas of communication,” adds Mr Raina.

At present, Euro RSCG in India offers its clients integrated communication services and has a group of companies which offer advertising, direct marketing, call centres, interactive, online media, events and PR services.