With revenues of $3.1 million in 1998, Martin Sorrell's London-based WPPGroup accounts for 28.2 per cent of India's advertising pie. Around twoyears ago, WPP had acquired two Indian advertising giants namely HTA and O&M.According to Ram Sehgal, chief executive officer, Contract Advertising, hisagency has not yet received any formal notification from WPP.``I am veryhappy with this acquisition as our group will become very powerful in India.As we do not have the exact context of the deal, it is difficult to commenton the impact of this merger,''adds Sehgal.

Echoing Sehgal's views, Ranjan Kapur, managing director, O&M says: ``I amhappy for Martin Sorrell. Yes, WPP will become a very powerful agency acrossthe globe. This acquisition will not in any way affect our business atO&M,''adds Kapur.

Sam Balsara, managing director, Madison Advertising strongly feels thatmergers and acquisitions will become very counter- productive beyond acertain point.

``Can you imagine Colgate fighting tooth and nail with HLL as both accountswill be handled by WPP? Colgate will certainly opt for a new agency. Indianad industry will witness further polarisation at the top,''predicts Balsara.According to Arvind Sharma, managing director, Chaitra Leo Burnett, WPP'sacquisition represents continuing consolidation in the ad industry acrossthe globe.

``There will be a significant number of conflicting issues that Y&R has toresolve. That will be the biggest challenge posed by this merger,''elaborates Sharma.