Televisionpoint.com Correspondent | Mumbai
Candid Marketing, a brand promotion company, has announced a management buyout of the company from majority shareholder International Marketing & Sales Group (IMSG), which is divesting its stake due to the economic correction.

Speaking to Televisionpoint.com, Atul S. Nath, co-founder and managing director, Candid Marketing, says, "We are very excited about this new deal, as it allows us to work more independently. We have formulated a strategy to expand geographical and enhance our growth in product and service areas, specially in the marketing services."

Atul adds that Candid was recently adjudged the number one brand promotion agency by Brand Equity and that he intends working towards maintaining the leadership position.

"The buyout is evidence of the potential of Candid to stay in the industry, taking it to the next level of its evolutionary process." he says.

IMSG, based in London, is a marketing services group with a focus on emerging markets and has operations in Russia, Kazakhstan, Ukraine, Tajikistan, Uzbekistan, Armenia and Turkey, among other countries.

Speaking on the development, the IMSG spokesperson said, "IMSG decided to disinvest in Candid India so that it could focus energies, resources and funds to build on its business in UK, Russia and CIS countries, where it is a dominant BTL marketing player."

Due to the ongoing economic correction, the buyout transaction is worth very less compared to $ 5.5 million, which IMSG had paid in June 2006 to acquire 66 per cent equity in Candid. IMSG had earlier initiated plans to acquire the balance stake from the promoters of Candid by 2010.

IMSG had partnered Candid to expand its operations in India and explore other options for acquisitions in the region. The IMSG partnership gave Candid its trade and retail marketing wing, Integrated Trade Marketing (ITM), which has emerged as a good revenue earner.

Candid has been in the business for the past 13 years and has presence in six cities in India. It had a turnover of Rs 40 crore last year and grew by 45 per cent over 2007.

IMSG were advised by Sanjay Sondhi of Pegasus Advisory, New Delhi. Over the last year Candid has grown by over 40 per cent, providing promotional and activation solutions to clients like HUL, Nokia, ESPN Star Sports, Cadbury, Pepsi, Star TV, Castrol, Mars Foods and many others.