[2008-06-03]  Scangroup signs deal with American firm
Marketing services firm, Scangroup Limited, is Tuesday officially announcing its foray into the research business by unveiling a joint venture with an American firm.

The launch of the venture with the US based Millward Brown, is aimed at increasing Scangroup’s competitive edge in research, corporate design and in-store advertising. Bharat Thakrar, Scangroup CEO, recently told shareholders at the company’s Annual General Meeting that research business had been on the cards for some time. “We signed an agreement with Millward Brown last year to set up Millward Brown East Africa,” said Mr Thakrar.

Millward Brown is a global leader in advertising, media, marketing communications and brand equity research.

The deal, which came into operation in January this year, is part of Scangroup’s expansion and product diversification strategy as competition in the regional market intensifies.

Nigel Hollis, chief global analyst, Millward Brown, and Tim Smyth, Millward Brown East Africa managing director, are expected to grace Tuesday’s function.

The Nairobi Stock Exchange (NSE) listed company is also currently trying to expand its foothold outside the East African region into both South and West Africa.

It is exploring acquisition and joint venture opportunities in Angola, Mozambique, Botswana, Ghana, Nigeria and Zambia.

During the year ending December 31, 2007—the first full year of the group’s trading as a listed company, its consolidated profit before tax grew by 27 per cent to Sh352 million on net revenues of Sh1.157 billion up from Sh830million in 2006.

The revenue growth was backed by a 58 per cent growth in billings of over Sh4.7billion up from Sh3 billion in 2006.






Source: Nation Media Group 2007