NEW DELHI: Santosh Desai, MD and CEO, Future Brands, is set to buy a nearly 30 per cent stake in brand strategy and design firm DY Works from Sanjeev Malhotra, who will exit completely from the company he set up two decades ago. Desai is buying the stake in his personal capacity.
The controlling 65 per cent stake in DY Works will remain with Future Brands, which bought it in 2009 from Malhotra. Alpana Parida, an alumnus of IIM-Ahmedabad who heads the company, holds the remaining 5 per cent.
Desai confirmed the plan, but didn’t disclose the financial terms.
Industry experts estimate the valuation of the firm at close to Rs 70 crore. At that valuation, the deal would cost Desai Rs 21 crore.
DY Works, which was earli er known as DMA Branding, works with consumer brands such as
, ITC, Marico, Godrej, PepsiCo and Hershey‘s.Its other clients include Mahindra & Mahindra, Larsen & Tou bro and Air India.
The firm has been growing at 15 per cent for the past two years. It has about 85 employees with offices in Delhi, Mumbai and Bengaluru.
“Going forward, there will be some integration happening with Future Brands in terms of talent acquisition and other internal matters. However, there will be no change happening on the client-facing fronts immediately,” Desai said. It is currently undertaking an extensive rural research to understand the rural landscape which has changed due to infra changes such as increased telecom connectivity.