MxMIndia

Tag: Reliance Industries

  • Retail chains post double-digit sales growth in FY13, despite slowdown

    Slowdown doesn’t slow down growth for retail chains in FY13

    By Sagar Malviya

     

    India’s organised retail sector may have turned a corner in the year ended March, having managed to reduce losses while substantially increasing sales with a focus on costs by pruning poorly performing locations and resorting to more efficient supply management.

     

    Big unlisted retail chains such as Reliance Fresh of Reliance Industries, Aditya Birla Group’s More, Bharti Retail’s Easyday and Tata-owned Star Bazaar all posted double-digit sales growth, reflecting their increasing popularity among shoppers despite economic growth slumping to a 10-year low and consumer price inflation not easing appreciably.

     

    According to financial statements for 2012-13 filed with the corporate affairs ministry, the food and grocery retailers listed above saw their combined losses shrink to Rs 1,176 crore from Rs 1,277 crore in the previous year, while combined sales jumped 34 per cent to Rs 8,770 crore. Excluding Bharti Retail, which was in expansion mode, the sector cut the loss figure by about half. While Bharti Retail’s losses swelled 37 per cent to Rs 538 crore, all other conglomerate-owned supermarket chains reduced losses as they shut unviable stores and focused on supply chain efficiencies.

     

    “Our focus has been on profitable growth, which has resulted in reducing the operating losses by more than 30 per cent,” said Pranab Barua, business director, apparel and retail business, Aditya Birla Group. “Performance management at all touch points of the business has been a key driver, giving us a revenue growth as well as improvement in the bottom line.”

     

    In the last two years, most retailers have been closing, relocating or rationalising unprofitable stores after they found themselves saddled with mountains of inventory and gripped by a cash crunch following hasty expansion. “These retailers have reached their maturity with many stores opened during initial expansion, (they) are now six-seven years old. At the same time, there has been more focus on profitability and employee management per square foot apart from better inventory planning unlike the carnage we saw last year when retailers had to sell stocks at a huge discount,” said Kumar Rajagopalan, chief executive of the Retailers Association of India trade lobby.

     

    The numbers bear witness to this shift. Despite not opening a single store last year, Trent Hypermarket recorded a 21 per cent increase in total revenue to Rs 801 crore last fiscal and a loss of Rs 72 crore. Aditya Birla Retail added just three hypermarkets and two supermarkets under the More brand and posted a 10 per cent sales growth with a 5 per cent decline in losses as it shut over a dozen unviable stores. The numbers also indicate that despite, or perhaps because, of the economic gloom, Indian shoppers have embraced the value proposition offered by organised retail.

     

    “Modern trade has surely taken a share from unorganised retail due to a sharper proposition in terms of cost and quality. For a consumer, a full basket at modern trade works out cheaper compared to traditional trade and obviously more savings,” said Abheek Singhi, partner and director, The Boston Consulting Group, India (BCG).

     

    Bharti Retail’s losses widened as it opened more than 30 Easyday supermarkets and hypermarkets in calendar 2012, taking its tally to 210 stores. The sharpest decline in losses was posted by Reliance Retail, down 80 per cent to Rs 55 crore while sales jumped 36 per cent to Rs 5,256 crore.

     

    To be sure, the issues that make organised retail a high-investment, low-return sector are still unresolved, according to experts. These include the high cost of real estate, a paucity of skilled manpower and the lack of infrastructure such as cold storages and efficient supply chains. “Retailers are looking at profitable and moderate pace of additions under 10 per cent in FY14 against the range of 15-30 per cent seen in the last two-three years,” said Janhavi Prabhu, analyst at India Ratings & Research that has maintained a negative outlook on the retail sector for second half of 2013.

     

    Source:The Economic Times

    Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Extramarks is planning sizeable investments on the media front with a high profile media campaign soon and the creative mandate will be handled by McCann Erickson

    Carat scores extra with Extramarks

    By A Correspondent

     

    Extramarks Education Private Limited – promoted by Atul Kulshrestha – is a leading new age digital learning solutions company. In a recent development, Extramarks has appointed Carat as their Media partner.

     

    Extramarks has emerged as one of the leading players in the digital education category within a short period of two years, since its commercial launch. Extramarks’ products are being used in more than 3000 schools acrossIndiaand its online service is used by more than 7 lakh students.

     

    Confirming the media agency appointment, Rohit Jain, CEO of Extramarks asserted that Extramarks is now mature enough to take the next step forward in the field of interactive education solutions. “Extramarks is setting revolutionary standards in education whereby we aim to enhance the regular classroom experience and take a quantum leap forward.”

     

    Infotel Broadband Services Ltd. (Infotel), a subsidiary of Reliance Industries Ltd. (RIL), through its affiliate Reliance Strategic Investments Pvt Ltd, has acquired a 38.5 per cent stake in Extramarks Education Pvt. Ltd.

     

    It is learnt that Extramarks is planning sizeable investments on the media front with a high profile media campaign soon and the creative mandate will be handled by McCann Erickson.

     

    Vidhu Sagar, Executive VP Carat Media also acknowledges the development and says “We at Carat are extremely proud to have been chosen by Extramarks as their media partner.  We shall be partnering Extramarks in the media management exercise holistically – thus we’ll manage the entire set of media responsibilities for the brand including planning, buying and execution. Of course, we shall endeavour to do this with the help of all pertinent media platforms – including Television, Print, Digital, OOH as well as Activation.”

     

    Carat, the world’s largest independent media communications specialist, is part of the Aegis Media India Group  that also includes Vizeum, Posterscope the global OOH sector leader, Brandscope,  Hyperspace (Retail), Carat Fresh Integrated (Activation), PSI (Airports), Doosra (Creative), Isobar, the global communications agency with digital at its heart and  iProspect, the global leader in search and performance marketing.

     

  • In his new role as National Corporate Sales Head, all non-station market sales teams including Mumbai, South,Delhiand government will report to him with immediate effect while he will continue reporting to the CEO, Harrish M Bhatia

    94.3 MY FM elevates Rahul Namjoshi as National Corporate Sales Head

    By A Correspondent

     

    94.3 MY FM has elevated Rahul Namjoshi as National Corporate Sales Head. Mr Namjoshi, who has been associated with MY FM since 2007 as the Regional Head for Gujarat, moved to take the role of Business Head for North, East and South zones last financial year where he has played a critical role in transforming the Delhi region within a short span of time.

     

    In his new role as National Corporate Sales Head, all non-station market sales teams including Mumbai, South,Delhiand government will report to him with immediate effect while he will continue reporting to the CEO, Harrish M Bhatia.

     

    Commenting on the development Mr Bhatia said: “MY FM has created a culture that acknowledges exceptional performers. We are pleased to promote Rahul as the National Corporate Sales Head for 94.3 MY FM. We are sure that with his knowledge of Radio and the brand, Rahul will take MY FM to newer heights, making a positive contribution to the top line of the company.”

     

    Continuing with the restructuring exercise, Harold Paul and Ambika Singh have been elevated to the Station Head level at MY FM’s key station – Ahmedabad. They will look after Corporate Sales and Retail Sales respectively.

     

    Before joining 94.3 MY FM, Mr Namjoshi was leading Reliance Industries Ltd – Textile division as Deputy General Manager.

     

  • In recent weeks, the retail industry has been abuzz with speculation that the Future Group was in talks with India's richest man Mukesh Ambani to sell stake in its flagship Big Bazaar hypermarket network

    Kishore Biyani not to sell stake in Big Bazaar & Food Bazaar chains

    By Chaitali Chakravarty

     

    Retail magnate Kishore Biyani said that he is not in talks with anybody to sell stake in Big Bazaar and Food Bazaar chains because his Future Group has sorted out its debt crisis after three back-to-back deals in the past one month.

     

    “We are not in discussions with anybody. I don’t want to divest my core retail business now. I want to run it,” Mr Biyani told ET. “Our debt levels are very comfortable and divestment, if any, will only be in non-core assets,” the Future Group chief said.

     

    In recent weeks, the retail industry has been abuzz with speculation that the Future Group was in talks with India’s richest man Mukesh Ambani to sell stake in its flagship Big Bazaar hypermarket network, which contributes almost 65 per cent of revenues of Pantaloon Retail (India) Ltd, the listed entity of Future Group.

     

    Reliance Industries operates a nationwide network of retail chains under Reliance Retail and Mr Ambani sees this segment as one of the engines of future growth for the conglomerate.

     

    A Reliance Industries spokesman denied any negotiations with Biyani. “We deny that Reliance Industries has ever been in talks with Future Group or Mr Kishore Biyani for any stake sale,” he said.

     

    A person aware of developments in Future Group, however, said Reliance Retail and Future Group had explored the possibility of a partnership about three months ago. But the talks did not proceed because the AV Birla Group moved faster and agreed to buy Pantaloons department chain, helping Future Group improve its precarious financial situation.

     

    “At that time the priority was to bring money into the company and the Pantaloons deal addressed that issue,” the person said.

     

    The Future Group, which has been in an aggressive expansion mode, ran into a crisis with consolidated debt of Rs7,800 crore that weighed on its profitability. Pantaloon Retail has been spending more than Rs100 crore in interest over each of the past three quarters. This started to pinch as consumer spending slowed. That was when Mr Biyani started looking to sell assets to pare debt.

     

    Last month, the Future Group sold a majority stake in Pantaloons department chain to AV Birla Group’s Aditya Birla Nuvo for Rs1,600 crore that included Rs800 crore of debt transfer.

     

    Then, last week, the Future Group announced sale of its 53.67per cent stake in Future Capital Holdings to US-based private equity firm Warburg Pincus for Rs4,250 crore, which included Rs450 crore of cash payout and Rs3,800 crore of debt transfer. Pantaloon Retail also raised Rs 200 crore through a preferential share allotment last week.

     

    “In the past one month, Biyani has managed to reduce his debt by Rs 6,000 crore. Now, he is in no hurry to sell any of his core businesses,” the person close to Future Group said. A senior official of a rival retailer, however, said Mr Biyani will ultimately get a partner for his value chain. “The only question is if he will tie up with an Indian company or wait for foreign direct investment to be allowed in the sector so he can find an international partner,” the person said.

     

    Meanwhile, Mr Biyani plans to sell more non-core assets in a bid to make the Bombay Stock Exchange-listed Pantaloon Retail debt-free by March 2013.

     

    He plans to raise Rs1,650 crore by October by offloading shares in his insurance and stationery joint ventures, the consumer electronics chain and home furnishing network. This would include raising Rs1,000 crore by divesting stake in Future Generali insurance. This will help prune Pantaloon Retail’s standalone debt, which stood at about Rs5,500 crore at the end of March.

     

    The group also plans to shed 40 per cent stake in the electronics retailing business eZone when it merges it with Noida-based InTarvo Technologies, which specialises in providing technical support to large corporations and retailers. InTarvo could not be contacted for comment despite repeated attempts.

     

    Mr Biyani also plans to sell a minority stake in home furnishing and do-it-yourself chain Home Town network for about Rs 300 crore in the next two months.

     

    He said his group’s May deal to cede controlling stake in Pantaloons chain to AV Birla Group was a one-off transaction. The company will only sell minority stakes in any future deals in its core retailing business and will maintain majority stake in such ventures, he said.

     

    Mr Biyani added that he doesn’t want to touch Future Value Retail, which operates Big Bazaar and Food Bazaar, as the group’s debt situation can be controlled.

     

    The only way he wants to touch Big Bazaar is by undertaking some tweaking in the profitable 150-strong chain by introducing improved services and consumer-centric approaches, underscoring with a new tagline ‘Aapki Sewa Mein’ (or, ‘At Your Service’). Big Bazaar is changing its tagline months after it adopted ‘New India’s New Bazaar’.

     

    Source: The Economic Times
    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • With the growing scope of monetizing multimedia content, IndiaCast is poised for interesting times

    We want to be in the forefront when new media merges with traditional: Anuj Gandhi

     

     

    The writing was on the wall the day Anuj Gandhi joined Network 18 in March this year to oversee the group’s distribution and new business development. And the reason for this was the all-new relationship between Network 18-TV 18 and Reliance Industries forged a few months before his joining.

     

    Other than the providing of the much-needed funds and the consequent stake in one of India’s largest (and more powerful) media conglomerates, Reliance was also looking at making full use of the content produced and owned by the various Network18 and Television18 arms, especially for the Reliance 4G services.

     

    Also, in the post-digitization era, distribution becomes a key driver in the revenues of a broadcaster, especially for niche channels. And with various mobile devices becoming popular and wireless technology progressing rapidly from 2G to 4G even in India, the monetization potential for multimedia content leapfrogs.

     

    Enter IndiaCast, a joint venture of TV18 and Viacom18 to create India’s first multi-platform ‘Content Asset Monetization’ entity.

     

    IndiaCast Group CEO Anuj Gandhi is a veteran in the distribution and the affiliate sales front. An MBA from the SP Jain Insitute of Management, he has worked with Discovery Communications as Director – Affiliate Sales (1997-2002),  as President of SET Discovery (2002-07) and CEO of DEN Networks (2007-2010) and worked as an independent consultant for a little over a year. He has also worked with IndusInd Media in distribution (way back in 1994) and prior to that with Ranbaxy. Clearly, being an early leader in every aspect of the distribution business, Mr Gandhi is well-poised to monetize the wide variety of content that IndiaCast has in its basket.

     

    Hours after announcing IndiaCast, Anuj Gandhi spoke with MxMIndia, his first and until the time of publishing only detailed interview on the shape of things to come.

     

    So we see the the birth of a laaarge distribution company…

    IndiaCast is much larger than other traditional distribution companies because it entails monetizing content assets of all the groups – right now TV18 and Viacom18, and post-acquisition of Eenadu, but for all rights. It’s effectively all non ad-sales kind of monetization businesses. It will be online, traditional brick-and-mortar distribution businesses at a global level. So it is pretty huge.

     

    It’s just the beginning. My sense is that most people will do it because the lines are diffusing between various rights that people use in the market. It has already happened in the international market where a DTH guy blocks Over The Top (OTT) or IPTV rights from you and vice versa. So you will have technologies where OTT rights will sit on a box so the cable guy will come and tell you that I not only want to do cable rights but I also want OTT rights. Thus, with the passage of time, new media will get merged with traditional media and we want to be at the forefront of the revolution which will happen in the next few months/years.

     

     

    Any international tie-ups in the offing?

    We already have international updations in the US, UK and Dubai. Colors is being distributed there and going forward, we want to expand our portfolio. We plan to distribute more and more channels internationally. So it’s work-in-progress on that front.

     

    So what happens to Sun18 now that IndiaCast has been formed?

    Sun18 was an alliance that worked very well and will continue to do well. The deal at Sun18 was that we will distribute Sun and Disney channels in Hindi-Speaking Markets  (HSM) and they will distribute us in the South. So, the only change in the whole alliance is that instead of distributing in the whole of South, they will only do Tamil Nadu now. Otherwise everything stays the same, we still distribute them in the North and also Disney which is part of their network. With this, Sun18 North has kind of folded into IndiaCast.

     

    Is it a coincidence that IndiaCast happened days before the scheduled digitization in the metros or was it on the cards for a while?

    No it was in the pipeline and we were talking about it for a while now and we knew that we needed to get all our pieces in order.

     

    Any major challenges you see coming up in the future?

    I think the major challenge would be to get the deal right for digitization. Whether it happens in 25 or 90 days (as digitization in the four metros is likely to get delayed by a few months), this is a chance where the industry needs to correct itself; we all need to work in getting the ARPU situation right in this country. So the challenges are basically at the industry level. Also, on the global front, the challenge is to be able to do more channel launches in international markets and be seen as a serious player. Also, one more challenge will be about how new media unfolds in the country.

     

    With viewers being able to subscribe to channels a la carte, do you anticipate reach/visibility of channels to take a beating… for instance, what if a person just takes one or two channels a la carte?

    While there will be some percentage of the market that will opt for it because by law you have to offer it. Like when CAS started, everyone talked about a la carte and people taking only one or two channels, but it just doesn’t happen. It doesn’t happen anywhere in the world and it won’t happen inIndiatoo. There may be a few people who would want that but that would be a single-digit percentage for me. So I am not too worried about it. But what will happen is, as they say, the time spent on niche channels will go up with digitization as everybody will be getting the same quality of channels. But if you start picking and chasing packages, some channels will start suffering. Not everybody is going to take all Hindi news channels, for example. So if they are in the same package, then people may pick them but if they are placed differently then it may not be the case. So some impact will happen, but not in the short term.

     

    We see that IndiaCast will also represent Sun and Disney in HSMs. Any others on the anvil? Since UTV channels are now part of Disney, will they move too?

    Nothing right now, I think we already have too much on our table right now. If something happens tomorrow, we do not know but we are not looking at adding anything new as yet.

     

    As part of Network 18/Television 18 agreement with the Reliance Industries Ltd’s Independent Media Trust stake, there was also a plan of all Network 18/Television 18 content being syndicated to Reliance 4G? Will it be done via IndiaCast?

    I won’t be able to comment on this but as is known, all content monetization businesses lies with IndiaCast so the same businesses will be done with any 4G networks whether it is from Reliance or any other telco from the business.

     

    So going back to the earlier discussion, the arrangement with Sun18 stays…

    Yes, we have just changed the definition in terms of the three states in the south. Otherwise it remains where it was. So Sun18 continues to exist and holds up in IndiaCast. It won’t be called Sun18 anymore. There is no shareholding changing – Sun18 North is just folding up into IndiaCast.

     

    Do you see consolidation gaining prominence as we move ahead?

    I think it will happen for some time. What way and form – will now change as technology is becoming a critical part of our business. The traditional mergers may not happen as much but there has been a lot of M&A happening on the platform side which will also have an impact on broadcasting.

     

    With digitization happening, do you anticipate the revenue from non-advertising sources will actually be more than what comes from advertising?

    I cannot generalise it and will depend on channel to channel. But will certainly grow; I feel that it could be 50-50 at the network level. So niche channels will benefit more from subscription than ad sales but mass channels will still earn revenues from ad sales.

     

    So just as it holds true for the sales folk these days, do you see the distribution team also have much say in content in the future?

    I wish my bosses here say that distribution guy must have a say in content (laughs). But it’s not that now. Until now the interaction with the consumer was through various means and the stakeholders were too many in the value chain. Going forward, because it will be a box and be kind of a direct deal – so if I am going to an MSO, he can probably tell me area specific complaints – it will reach back to the content owners much faster and in much clearer terms than what is happening today. That is what is happening in international markets and it will start happening inIndiatoo. But we are a couple of years away from that.

     

    So we’ll soon have distribution heads becoming CEOs of networks…

    Touche.

     

  • Ex-RIL and HUL corp communications head to take charge at Madison PR as Veena Gidwani retires on June 30.

    Paresh Chaudhry joins Madison PR as CEO, Veena Gidwani to retire

    Paresh Chaudhry

    By A Correspondent

     

    Madison PR has appointed Paresh Chaudhry as its CEO, who will be based in Mumbai. Veena Gidwani, current CEO of Madison PR will retire on June 30, 2012.

     

    Mr Chaudhry has over 24 years of Brand Communication and Reputation Management experience across industries and key global markets. He has been a business communication professional with Reliance Industries, Hindustan Unilever, Ranbaxy and Wockhardt. His last assignment was as Group President-Corporate Communications, Reliance Industries, reporting to Mukesh Ambani. Prior to Reliance, he was Head of Communications at HUL and Communications Leader, Unilever South Asia.

     

    Veena Gidwani

    From building the Corporate Brand of Ranbaxy in N America, Europe and India, to aligning regional communication country teams to bring alive “the transition to one Unilever brand” and driving the Corporate name change from “HLL” to “HUL”, to putting together systems and processes for effective global (internal & external) communications at RIL, Mr Chaudhry has experience and expertise in all areas of Corporate Communications.

     

    An MBA (Marketing) with a Public affairs diploma from Hong Kong University, he is the founder President of the Indian Forum Of Corporate Communicators (IFCC).

     

    Sam Balsara, Chairman and Managing Director, Madison World, added, “I am delighted to have Paresh join us. His cross client category and cross country experience should help him add great value to our FMCG clients. Veena has done a wonderful job in building Madison PR into a specialist Brand PR consultancy and meeting the professional needs of our over 40 clients in Mumbai, Delhi, Bangalore and Pune and I wish her a very happy and fulfilling life ahead”.

     

    On his joining Madison, Mr Chaudhry said, “I am delighted with the opportunity to work with Madison PR, that has carved out a distinct and distinguished niche within the industry and is known for its strong values and relationships with some of the best known companies in Corporate India. I look forward to working with Sam and his team of professionals to take Madison PR to the next level.”

     

  • The deal, expected to be around Rs2,700 crore, is touted to be one of the biggest in the media industry

    Competition Commission approves RIL Trust’s stake buy in Network 18, TV18

    By A Correspondent

     

    India’s competition watchdog has approved Reliance Industries’ acquisition of stake in Raghav Bahl’s media companies Network 18 and TV18 Broadcast.

     

    The Independent Media Trust, a trust set up for the benefit of Reliance Industries Limited, acquired the stake by subscribing to the optionally convertible debentures of companies controlled by Mr Bahl.

     

    The deal, expected to be around Rs2,700 crore, is touted to be one of the biggest in the media industry.

     

    The Competition Commission of India states in its order that the assessment of competitive impact of the proposal was carried out to ascertain whether both groups are engaged in production, supply, distribution, storage, sale or trade of similar or identical or substitutable goods or services.

     

    However, CCI noted that new channels can be started with ease in the country given the scope of innovation and technology. “The commission is of the opinion that the proposed combination is not likely to have any appreciable adverse effect on competition in the business of supply of television channels in India… specific determination of relevant product and geographic market in respect of supply of television channels in India is not necessary,” the CCI said in an order put up on the commission’s website.

     

    The TV18 group operates CNN-IBN and CNBC TV18 channels, among others.

     

    Source: The Economic Times
    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

     

  • Senior journalist and media-watcher Paranjoy Guha Thakurta on what the Aditya Birla investment in the India Today group means for the Indian media

    Loss of plurality is worrying: Paranjoy Guha Thakurta

    Paranjoy Guha Thakurta

    By Paranjoy Guha Thakurta

     

    This sort of an acquisition is part of a growing trend of ‘corporatization’ of the media where big business houses such as the Aditya Birla Group and the Reliance Industries group are investing into existing media groups. Through this process of consolidation, they are also bailing out these groups.

     

    The Raghav Behl-led Network 18 and Ramoji Rao-led Eenadu are now part of one big conglomerate because Reliance Industries Ltd (RIL) has bailed out both by pumping in a huge amount of money. On paper, it appears as if they are still separate corporate entities, which they are, as per the laws of the land. But the kind of associations they have struck gives an impression that they are now going to work like a conglomerate. Now this is exactly what has happened in the case of Mr Aroon Pourie who heads the India Today group which is also going to be one major conglomerate. So what we are seeing, in that sense, is the ‘cartelization’ of the media. There are cartels being formed, there are oligopolies being formed.

     

    The recession in the west has led to shrinking of advertising expenditures for the media in India and across the world especially after 2008, and this has had a direct impact on the fortunes of media organizations. So this process of consolidation has got expedited. What this means is that the media in India is going to become less plural, it’s going to be dominated by relatively fewer groups. What you are really seeing is, large corporate groups exercising greater dominance on the media. Now there are two implications.

     

    Also read:

    AV Birla group buys 27.5% in India Today group

     

    Birla may use personal money for buy, Mail Today may now launch editions in Mumbai, other metros

     

    Why media purists needn’t worry about Kumar Mangalam Birla’s 27.5 % in Living Media

    One is, of course, you are finding telecom companies (Mr Aditya Birla also happens to be the head of Idea and Mr Mukesh Ambani’s RIL is a major player in the broadband wireless access space), which are providing you communications, are also now playing an important role in companies that produce content. So the content providers and content distributors are coming together. This, in my opinion, is going to result in a loss of heterogeneity, resulting in a loss of plurality. In a sense, the oligopolies that are going to be formed will also impact the listeners of content, the viewers of content, or the readers of content. The content they get will be less heterogeneous.

     

    The other part of the story is that these companies are also big advertisers. Therefore, the clout of the advertiser will go up. As I said, the telecom service providers are now becoming important stakeholders in companies that are producing content. So the distributors of content are becoming stakeholders in the producers of content. Similarly what you also see at another level, the companies which are big advertisers are also now becoming the owners of the media. So in my opinion, these trends towards ‘cartelization’, or the formation of these giant corporate conglomerates is not going to lead to greater plurality as far as the consumers of content are concerned.

     

    The numbers of TV channels and newspapers and websites often give you a very deceptive kind of a picture and the capital is a classic example of that.Delhiis the only city in the world with 16 English language daily newspapers. This gives you a misleading picture, that readers of English dailies inDelhihave a huge choice. But the fact of the matter is that two newspapers, The Times of India and Hindustan Times would account for well over three-fourths of the total market of all English daily newspapers. And if you add to that Economic Times, then these three publications put together would account for more than 80 per cent of the total circulation of all English newspapers in India. So, in terms of numbers it looks good, but if you look at the structure of the market, you see few dominant players.

     

    In India, unlike in other countries of the world, like US, UK or Australia, there are no cross-media restrictions. In other countries, there are both vertical as well as horizontal restrictions. Vertical restrictions mean that the content producer and the content distributor are different companies/groups. In India, the same guys who are producing content are also distributing the content. You have the DMK controlling the distribution channel and also producing the television channel; you have Zee News producing news and also controlling Dish TV. There are clear conflicts of interest that arise if your distributor and the provider are the same. That’s only one part of the story.

     

    The other is what is called horizontal cross media restrictions. That means, the same company dominates all forms of the media, like print, radio, TV, in the same geographical area. In our country we don’t have any legal restrictions on cross media holdings. As far as the media is concerned, the group concept or the conglomerate concept does not operate in our country. So you have Bennett Coleman Ltd which brings out various print publications, and then you have Times Global Broadcasting which brings out the television content. These two companies happen to be controlled by the same set of people. But because the legal restrictions that exist in India apply to individual entities and not to conglomerates, effectively you have no cross-media restriction.

     

    Speaking of editorial content, editors will not publish or broadcast anything that would go against the interest of the corporate that controls; these would become subtle forms of censorship and control. For instance, Living Media which includes, Aaj Tak, India Today, Headlines Today and Mail Today, these publications or these broadcasters are unlikely to publish anything negative that could affect the business interests of the Aditya Birla Group. So that could be an eminent danger, that degrees of freedom that editors and content providers would enjoy, would get curtailed not just because of the pattern of ownership but also because the owners of major conglomerates are also major advertisers.

     

    Even if on paper, the editors have the autonomy and independence to publish what they like, there could be subtle forms of censorship wherein editors would feel constrained or would think twice before publishing any story that could in any way go against the interest of the promoters of the company that control these media conglomerates.

     

    I am optimistic about the future of media in India but I am also concerned about the fact there is loss of heterogeneity, loss of choices to the consumer.

     

    (As told to Shruti Pushkarna)

     

    Paranjoy Guha Thakurta is a senior journalist, editor and broadcaster based in New Delhi.