The hiking of stake in Lintas India to 100 per cent by the Interpublic Group (IPG), is likely to trigger a fresh round of consolidation among the international advertising networks in India. At present, all the top ten ad agencies in the country are a part of international advertising networks such as the WPP Group, Publicis Group or IPG. According to ad industry executives, the 74 per cent stake in both JWT & Ogilvy (O&M) is hold by WPP group, with the remaining being held by the employees of both the agencies.

O&M and JWT are estimated to be the top two advertising agencies in the country in terms of revenues. WPP only holds about 40 per cent. Indian partners are holding the major stake at another WPP agency, Rediffusion D,Y&R, According to industry experts, WPP is likely to pitch for hiking its stake in the agency over the next year or so. Rediffusion executives were not available for comment. Apart from Lintas, IPG the third largest agency in India also has a majority stake in McCann Erickson and FCB Ulka. However, it does not have a 100 per cent control. Industry insiders say the network would shift focus to FCB Ulka where it has a 51 per cent shareholding, after the necessary procedures and formalities for the Lintas integration are completed.

All the Publicis Groupe agencies in India such as Leo Burnett, Ambience and Ambience Publicis are 100 per cent subsidiaries of the network. The sole exception is Saatchi & Saatchi, where the MD V Shantakumar has a minority stake in the agency. As India is currently among the fastest growing ad markets, especially when it compared with the slowing home markets such as the United States or Europe. A larger stake would result in a larger share of the profits flowing back to the network, in addition to greater control over the agency.