MAM
Indian ad spends estimated to grow at 10.7 per cent in 2020: GroupM’S TYNY report
MUMBAI: GroupM, the media investment group of WPP, today announced their advertising expenditure (adex) forecasts for 2020. As per the GroupM futures report ‘This Year, Next Year’ (TYNY) 2020, India will continue to top the list as the fastest-growing major ad market in the world. TYNY forecasts India’s advertising investment to reach an estimated Rs. 91,641 crores this year. This represents an estimated growth of 10.7 per cent, for the calendar year 2020.
India will continue to be the third-highest contributor to the incremental ad spends, only behind UK and USA while China drops to the fourth spot and the eight fastest-growing country with respect to ad spends across the globe.
Commenting on the TYNY 2020 report, GroupM South Asia CEO Prasanth Kumar said, “We expect the global adex to grow by 5.1 per cent. The Indian media landscape is constantly evolving, will continue to witness the fastest growth of 10.7 per cent to reach Rs 91,641 crores. While we expect sustained and stable investment across media in India, Digital to garner 65 per cent of incremental ad spends in 2020. In 2020, India faces challenges and uncertainties across sectors just like other markets. However, this also brings opportunities for brands to innovate because of which we see an evolving media stack. This will be propelled by greater use of technology and better content across media.”
Digital secures number two position as the most used media vehicle and is estimated to reach 30 per cent of ad spend in 2020 with growth coming from 3Vs (video, voice, vernacular-Indic) and advertising on e-commerce. The growth of digital is set to soar high because of changing consumer habits.
“There are multiple advancements happening in technology which is transforming digital advertising and other mediums. India being a diverse country, digital will keep growing, especially with the rise of content platforms and its availability in multiple languages powered by the growth of 3Vs. From a predominantly ‘at home’, ‘urban’, ‘English print’ & ‘TV’ consuming market, the Indian media consumer evolved to include ‘on the move’, ‘rural’ & ‘regional’ counterparts, experimented with digital media in the early 2010s’, adopted social media in middle of the decade and started consuming digital videos voraciously after 2016,” GroupM South Asia president growth and transformation Tushar Vyas said.
Even with an overall slowdown in the global economy Indian media spends are expected to be between low to moderate in H1, with robust growth anticipated in H2 2020.
“The format of print storytelling is changing but the content is still the strongest. With print media organizations undergoing transformation across India. Publication houses have invested heavily in promoting digital subscriptions and have started limiting access to digital versions of epapers. We believe that this would pave the way for newer business models. Print will continue to remain relevant to advertisers wanting to build credible brands. Television will continue to grow at a steady pace. This year, the growth rate for TV is estimated to be 7 per cent and Radio is expected to grow at 6 per cent. While cinema and OOH will grow at 15per cent and 6per cent respectively in 2020,” GroupM India investments and pricing president Sidharth Parashar said.
OTT has seen a faster evolution in India, which is now complementing television. OTT hybrid models looking at both advertising and subscription will continue to be an effective model.
“While there are challenges and uncertainties in the market, it is a world of abundant opportunities in the content eco-system. This gives us vibrant options to reach and engage with consumers. It necessitates us to be agile, invest in new-age talent and technology while keeping an eye on the future. The key is to be always prepared while we are shaping the media landscape,” GroupM India partnerships and trading president Ashwin Padmanabhan commented.
GroupM also shared some of the top watch-outs that will shape the Indian consumer & therefore industry in the coming decade. The trends presented were around emerging technology, behavioural changes, data, etc, that put the consumer at the centre and emphasize digital driving the change across all formats of media.
Brands
Sun Pharma to acquire Organon in $11.75 billion deal at $14 per share
Acquisition to create $12.4 billion pharma giant with global scale and biosimilars push
MUMBAI: Sun Pharmaceutical Industries Limited has signed a definitive agreement to acquire Organon & Co. in an all-cash deal valued at $11.75 billion, marking one of the largest cross-border pharma acquisitions by an Indian firm.
Under the terms of the agreement, Organon shareholders will receive $14.00 per share in cash, with Sun Pharma set to acquire 100 per cent of the company’s outstanding shares. The transaction, approved by the boards of both companies, is expected to close in early 2027, subject to regulatory approvals and shareholder consent.
The deal significantly expands Sun Pharma’s global footprint and strengthens its position across women’s health, biosimilars, and branded generics. The combined entity is projected to generate revenues of around $12.4 billion, placing it among the top 25 pharmaceutical companies globally.
Organon, which was spun off from Merck in 2021, brings a portfolio of over 70 products spanning women’s health and general medicines, with operations across more than 140 countries. Its established presence in key markets such as the US, Europe, and China complements Sun Pharma’s existing strengths and growth ambitions.
Sun Pharmaceutical Industries Limited executive chairman Dilip Shanghvi said, “This transaction represents a significant opportunity for Sun Pharma to build on its vision of reaching people and touching lives. Organon’s portfolio, capabilities and global reach are highly complementary to our own.”
Sun Pharmaceutical Industries Limited managing director Kirti Ganorkar added, “This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products.”
From Organon’s side, Organon & Co. executive chair Carrie Cox noted, “This all-cash transaction offers compelling and immediate value to Organon stockholders, while positioning the business for continued growth under Sun Pharma.”
Strategically, the acquisition gives Sun Pharma entry into the global biosimilars space as a top 10 player and strengthens its innovative medicines portfolio, which is expected to contribute around 27 per cent of combined revenues. The deal is also expected to nearly double EBITDA and cash flow, supporting long-term deleveraging and investment capacity.
Sun Pharma plans to fund the acquisition through a mix of internal accruals and committed financing from global banks, while maintaining focus on disciplined integration and operational continuity post-merger.
If completed as planned, the deal signals a clear shift in India’s pharmaceutical ambitions, from scale at home to leadership on the global stage, with Sun Pharma positioning itself as a more diversified and innovation-led healthcare powerhouse.
