Global advertising company WPP PLC has said that its wholly-owned operating company JWT Singapore has agreed to acquire a majority stake in Hungama Digital Services, the digital and promotions marketing division of Hungama Digital Media Entertainment Private Ltd.

A new entity, Hungama Digital Services Private Limited, will operate as a full service digital agency specialising in digital marketing and social media solutions. As part of the acquisition, Hungama’s activations arm Hungama Promo Marketing will become a part of Hungama Digital Services. It is expected to provide an engagement platform across online and offline deliveries.

Based in Mumbai, Hungama Digital Services offering includes strategic planning, web design and maintenance, digital marketing, search engine marketing, social media optimisation and communications strategy, rich media, viral marketing campaigns, merchandising, events and conference management, and sampling.

The agency employs 110 people and clients include Mahindra & Mahindra, Bacardi, Godfrey Philips, Britannia Industries, Tupperware India and Hindustan Unilever. According to WPP, this investment continues WPP's strategy of developing its networks in fast-growing and important markets and sectors.

Neeraj Roy, managing director and chief executive officer, Hungama Digital Media Entertainment, said, “With JWT, we are now part of the largest advertising network in the world. Hungama Digital Services is the coming together of two exceptional teams in a globally relevant market. India is at the cusp of a digital revolution with the advent of 500+ million consumers getting online in the next three to four years. With this partnership with JWT we hope to offer integrated digital and experiential services to our clients and prepare brands to connect, interact and now transact with their customers.”

“Digital is our next new frontier. The idea of the partnership is to build a digital offering for our clients so we can live up to being a ‘single source’ partner across all their‘marketing solutions’ needs. What will be most effective in the future is a new set of talented, digital high end specialists who will add new skills and capabilities to what JWT already offers to its clients. We want all our clients to be leaders in their respective categories,” said Colvyn Harris, chief executive officer, JWT India.

“We have greatly expanded our digital capability across the region, and we are not standing still. JWT will continue to hire new digital experts and explore possible acquisitions across the region this year,” added Michael Maedel, president, JWT Asia Pacific.

This is the second biggest development in Indian digital media industry in 2012 after, in April 2012, Publicis Groupe had acquired Mumbai-based digital agency Indigo Consulting. Indigo Consulting now operates as a unit within the Leo Burnett Group in India and will retain its name. Its founder, Vikas Tandon, will remain as managing director, and report to Arvind Sharma, chairman of the Indian Subcontinent for Leo Burnett.