Scangroup already has indirect interests in Nigeria that it acquired after it bought 51 per cent Ogilvy Africa—earning the Kenyan firm a 12 per cent stake in Nigeria’s agency Prima Garnet.
Mr Thakrar did not explain how Scangroup’s direct entry to Nigeria will affect the operations of Prima Garnet.
Marketing services firm Scangroup has established a subsidiary in Nigeria to boost its presence in West Africa and reduce reliance on the East African market.
Scanad Nigeria Limited is the newest subsidiary of Scangroup which has interests in 15 African countries. The Lagos operations gives it an opportunity to get a larger share of the West Africa market — which has been elusive for the firm that is listed on the Nairobi Securities Exchange (NSE).
Scangroup intended to take a stab at the West African market in 2007 through Nigeria as it sought to get a slice of the market estimated at about Sh500 billion.
But the deal, in partnership with a local investor, collapsed and early last year gained entry in Ghana after it acquired the business of partner agency Media Majique and Research System (MMRS), giving it access to lucrative clients like Airtel and Vodafone.
“This is a greenfield venture we are undertaking as Scangroup,” said Bharat Thakrar, the CEO of Scangroup in an interview with the Business Daily on Tuesday.
Scangroup already has indirect interests in Nigeria that it acquired after it bought 51 per cent Ogilvy Africa—earning the Kenyan firm a 12 per cent stake in Nigeria’s agency Prima Garnet.
Mr Thakrar did not explain how Scangroup’s direct entry to Nigeria will affect the operations of Prima Garnet.
The Ogilvy acquisition earned Scangroup minority stakes in eight media agencies in South and West Africa where Ogilvy Africa has stakes of between 30 and 12.5 per cent -- earning the Kenyan firm stakes of between 6.4 and 15.3 per cent.
Besides giving the Kenyan firm a direct interest in Africa’s second-biggest economy, it gives it a larger foothold of the West African market it has been angling to get over the past five years.
Nigeria’s economy is estimated to overtake that of South Africa by 2030.
Nigerians Rufai Ladipo and Abiodun Mesharck have been appointed chief executive and head of media of Scanad Nigeria while Sameer Ambegaonkar, previously the managing of Scanad Kenya, has been tapped as managing consultant.
The regional expansion drive will help Scangroup to achieve its long held ambition to diversify its regional presence and reduce its reliance on Kenya, which accounted 60 per cent of its revenues last year.
Scangroup profits grew 42 per cent last year to Sh911.1 million and its share price has gained 20 per cent to close at Sh60 on Monday.
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