• by Steve McClellan  @mp_mcclellan, October 31, 2011

Omnicom has upped the ante in the battle among holding companies to expand their holdings in Asia. The New York-based company confirmed it has agreed to acquire a majority stake in the Mudra Group, one of India's top advertising and marketing services operations.

India is one of the so-called “BRIC” countries (along with Brazil, Russia and China), which have some of the fastest growing ad economies around the world. That's why the major ad holding companies are eager to expand there. According to RECMA, ad spending in India grew 25% in 2010 to $5.5 billion.

Ranked by holding company, WPP handled the largest amount of that spend with market share of over 40%, per RECMA. Interpublic Group shops accounted for about 15%, while Publicis had about a 9% share and Omnicom about 4%.

Omnicom previously had a 10% stake in the Mundra group and has been partnered with that agency’s parent Reliance ADA Group for more than two decades. One of the agency networks in the group is DDB Mundra, which was launched in 1993. Others include branding and communications firm Mundra India; experiential firm Mundra Max and Ignite Mundra, which offers entrepreneurial advisory services.

The Mundra group generates an estimated $45 million in annual revenues, with 26 offices throughout the country.

Omnicom said that taking control of the group would “significantly expand” its presence in India, home to Asia’s third-largest economy.

"This acquisition is an important step in achieving Omnicom's strategy to extend and deepen our presence in rapidly growing markets," stated John Wren, President and CEO of Omnicom Group. “Mudra is widely acknowledged as an outstanding company with impressive creative product and expertise in a broad range of disciplines. Mudra's innovation and depth of talent will strengthen our business capabilities not only in India but around the world."

According to Omnicom CFO Randall Weisenburger, the acquisition will also help the holding company “more efficiently expand its other operations in India.”