MAM
India’s ad spend estimated at 13.3 per cent by Magna Global Forecasts 2015
MUMBAI: In its latest study of global media owner advertising revenues, covering 73 countries, Magna Global estimates that ad revenues grew by more than 5.5 per cent this year, to reach the half-trillion mark ($512 billion). Advertising sales will grow by more 4.8 per cent in 2015 to reach $536 billion.
Some of the most significant revisions in the 2015 forecasts are found among BRIC markets. China and Brazil advertising revenues are still predicted to grow by a decent amount (+8.6 per cent and +5.9 per cent, respectively) although two to three points below previous expectations. Russia is the single biggest negative revision, due to the combination of declining energy prices and the partial withdrawal of Western investors amidst geopolitical tensions; the 2015 advertising growth forecast is cut from 7.0 per cent to 0.8 per cent.
India will, thus, become the most dynamic among the four BRICs, with an expected ad spend growth of +13.3 per cent following a similar pace of 2014 (+13.2 per cent).
The general elections that took place in the first part of the year generated massive incremental spend. The outcome of the election, bringing a new BJP-led Government to power, improved business and consumer confidence, is what prompts ad growth forecast in the coming year. The new government is also committed to invest billions in order to connect millions of rural Indians to broadband internet, in a plan advertised through a recent meeting between the new Prime Minister Narendra Modi, and the Facebook founder Mark Zuckerberg.
Magna Global global forecasting director and author of the report Vincent Letang said, “In 2014, the long-awaited European recovery finally came in time to partly offset a weaker- than-expected growth in the US and the BRICs. In 2015, the lack of non-recurring events, the continued slowdown of the BRICs and the deflationary effects generated by the rise of digital media will inhibit global advertising growth, in a slight disconnect with the positive acceleration in the macro-economic environment.”
The report highlights that in the APAC, within digital, the fastest growing formats are social (+58.6 per cent growth), followed by video (+37.6 per cent growth) and search (+25.5 per cent growth). Mobile spend on social formats continues to lead the way, and other formats will follow.
Television remains the dominant format for advertising spend in APAC, and spend will grow by 3.5 per cent this year and represent slightly over 40 per cent of all advertising dollars. Broadcast television continues to dominate the TV landscape, although multi-channel television is gaining share due to slightly higher growth rates, and by 2019 will represent nearly one quarter of TV dollars. Print continues to lose market share, and newspaper and magazines together will represent less than one in five advertising dollars this year. This is down from one third of all spending as recently as 2008.
APAC will continue to be one of the stronger regional drivers of global advertising spend, although its lead on the global growth rate continues to narrow. Its total share of global ad spend will only increase slightly between this year and 2019, from 29 per cent to just over 30 per cent of total spend.
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.
