"We needed a complete control on Dentsu India to fuel the next phase of growth": Seiichiro Hayata

Seiichiro Hayata, the acting chairman of Dentsu India has a few immediate tasks in hand. First, to fill the void that has been created post the exit of top management. And next, to maintain a balance between Indian and Japanese clients and pave a growth path for the agency. He speaks to afaqs! on his plans ahead.

The last few weeks have been quite turbulent for the Dentsu India Group. The agency has lost its top management -- head of operations, Rajesh Aggarwal, head of creative, Gullu Sen, and national creative director of Dentsu Marcom, Nitin Suri -- post the Japanese partners Dentsu Inc. bought the 26 per cent stake of Mogae Group, co-owned by Sandeep Goyal and his wife Tanya.

Seiichiro Hayata, acting chairman, Dentsu India, reveals to afaqs!, that since India was an important market in Dentsu's scheme of things, it was of the utmost importance to get a 100 per cent stake in Dentsu India to fuel the next phase of growth.

According to Hayata, the first few years under the leadership of Sandeep Goyal, was a period of development-cum-entrepreneurship. However, in a joint venture, it often becomes difficult to reach a conclusion. With a 100 per cent stake, Dentsu Inc. wanted the power to be the final decision makers.

Though, Hayata is also quick to add that Goyal has been a great source of learning and it's because of him that Dentsu Inc. now understands the nuances of the India business. Goyal continues to perform an advisory role in the non-executive board, though he will not be a part of the day-to-day functioning.

Hayata discloses that now Dentsu India will follow both the 'de-centralisation' and 'centralisation' paths. What he means is that Dentsu India will now function independently, with its Indian counterparts getting a free hand to run the business, but under guidance from Dentsu Japan.

The acting chairman, who has been in India for the last 18 months -- probably to ensure a smoother transition of power and understand the market better -- says that there will be more delivery of tools and knowledge resource from Japan post the acquisition, which was a rare phenomenon till now. According to Hayata, it was important to do so to upgrade the talent skills of the existing team and thus take the business further.

When questioned about the exit of the top management, Hayata did not deny that this was anticipated. He says, "In a period of transition there is a high tendency of people moving out, so yes, we understand this is how one part of the business works. However, on the other hand, one can never really forecast as to who will leave the company next."

To fill the gap, the company is now looking at talent from both within and outside the organisation, but definitely not someone from Japan, Hayata clarified.

The next task in hand for the new management at Dentsu India is to keep a balance between the Indian and Japanese business and maintain the Indianness of the agency.

Until now, the ratio between the Indian and Japanese businesses has been 60:40. The agency now plans to get a few home-grown Indian brands on board to maintain the share of Indian businesses. The Ahmedabad branch of the agency will specially cater to this need and to this effect, it has recently acquired the business of Vini Cosmetics.

Besides, Dentsu India, which has until now showcased its strength in automobile and audiovisual brands -- mainly due to its Japanese background -- now wants to focus on sectors such as FMCG, Indian mobile phone brands and education. These three sectors will fuel massive growth for the agency.

Hayata reveals that Dentsu India is now looking at creating an integrated business solution by introducing new arms in areas such as below the line (BTL) activations and public relations (PR).

"From now on, we will have a more harmonious collaboration between Japanese knowledge and Indian talent," says Hayata, as he signs off.