This acquistion will strengthen the advertising agency's below the line activities.
Madhukar Kamat, managing director and CEO of Mudra, said, "The acquisition is in line with the agency's plans to turn into a group offering an integrated communications solution to our clients."
Mudra has picked up a majority stake in KPE and this will in due course be increased to 74 per cent, Kamat said.
KPE is a seven-year-old company that has worked with some of the biggest media spenders including Hindustan Lever, Pepsi, ITC and Colgate.
It has 11 offices across India. Pankaj Wadhwa, managing director of KPE said, "By being a part of the Mudra group, we hope to increase our turnover to Rs 50 crore (Rs 500 million) within the next three years."
KPE will have an independent identity under the Mudra umbrella, Kamat said.
According to Wadhwa, companies have begun to spend more on below the line marketing activities to reach out directly to the fragmented market.
The rising power of kids as influential decision makers has prompted many of the non-conventional advertisers like the insurance and tea makers to address children as the target audience.
The promotional marketing sector in India is poised to grow double this fiscal year touching Rs 1,000 crore (Rs 10 billion).
Mudra Communications plans to be a Rs 1000 crore company by March this year. It is looking at strategic alliances and acquisitions to dominate the niche segment of sectoral communication.
Two months ago, it had entered into a joint venture with Rapp Collins Worldwide to build up its direct response division.
