By Archita Wagle
There was no press conference announcing the deal. The Kanpur-based Jagran Prakashan Limited (JPL) simply did it by notifying the stock exchanges. The acquisition of Nai Dunia was done via Suvi Info Management (Indore) Private Limited which in turn owns Naidunia Media. It was an all-cash deal.
What it does for the Jagran group is significant as its hold on the Hindi belt becificant, a factor that could help strike better contracts with advertisers. In fact, as an analysis with IRS 2011 Round 4 numbers shows, the Nai Dunia acquisition has helped JPL become the numero uno print media group in the country (see accompanying story:Â Saala Jagran No 1 print media group ban gaya…)
According to an analyst from a domestic brokerage firm, this deal makes sense to JPL as the enterprise value assigned to Nai Dunia is Rs2.25 billion and had JPL planned a greenfield expansion in MPC, the total cost could have run into at least Rs3 billion.
In an email interaction with MxMIndia, Mr Amit Jaiswal, Company Secretary, JPL clarified that JPL has acquired only Nai Dunia. NewsX and Webdunia are not a part of the deal. Talking about the changes after the deal he said: “Mr Vinay Chhajlani will continue as Advisor to Board. His vast experience of print and knowledge about the market will be quite useful for us. We will add some new members to the team at senior level in sales, marketing and editorial. Our corporate brand team will help in branding and communication. As far as the staff, the erstwhile promoters have already rationalized the staff strength to a large extent.”
Commenting on the acquisition in a communique, Mr Mahendra Mohan Gupta, Chairman and Managing Director of Jagran said, “This was a logical market expansion for us and enables us to strengthen our presence in Central India. Nai Dunia is a newspaper with a very strong team and has demonstrated editorial excellence over the last decade.”
Nai Dunia is the flagship publication of Naidunia Media Limited, which was launched June 5, 1947. Nai Dunia features amongst the top 10 Hindi dailies of India and has multiple editions in MP and Chhattisgarh and is the third largest read newspaper in Madhya Pradesh and the fourth largest read newspaper in Chhattisgarh (IRS Q4 2011). According to a Jagran communique, Nai Dunia’s current circulation base is around half a million copies per day with the readership growing 2.6 times over the last five years.
The industry is almost unanimous in saying that the deal is windfall for both the parties involved, especially JPL, which can now enter the Madhya Pradesh-Chattisgarh (MPC) market. JPPL, controlled by GD Gupta family publishes the Jagran editions in Bhopal and Rewa in Madhya Pradesh and JPL, promoted by the PC Gupta family, has been barred from using Dainik Jagran banner in MP as it has been in litigation since 2007. But with the Nai Dunia acquisition, the other option for JPL, they are entering the MPC market with an established newspaper, which is the second largest newspaper in terms of readership and business volumes in MPC.
“JPL will benefit in terms of circulation and readership as it gets two new territories, Madhya Pradesh and Chattisgarh, with the acquisition of an established and well-known newspaper. JPL couldn’t enter Madhya Pradesh as per the agreement in the family, but now taking over Nai Dunia has opened the MP market for them,” said Mr Vijaydutt Shridhar, senior MP-based journalist and ex-editor of Navbharat.
Mr Abhishek Karnani, Director, Free Press Journal which also has an edition in Indore, echoed Mr Shridhar’s sentiments: “The takeover deal is a windfall for both, JPL and Nai Dunia. Entering the MPC market was the next logical move for JPL. Initially the market had only Dainik Bhaskar and Nai Dunia but several local new publications with strong backing were launched in the market. Nai Dunia made a smart move in selling out rather than being marginalised in the market.”
Says Mr Sundeep Nagpal of leading media consulting firm Stratagem, “This is in line with what other leading groups have done – like the Times of India group did with Vijaya Karanataka.” According to Mr Nagpal, the acquisition is a win-win for all parties involved.
“With Nai Dunia’s acquisition, JPL has gained foothold in an important and growing market for Hindi publications. Nai Dunia never grew much beyond Indore, though they had launched editions in other cities. But with an aggressive player like JPL taking over we can expect to see Nai Dunia growing in other centres too. JPL has now entered Dainik Bhaskar’s territory. We can now expect a good fight,” said Mr Janardhan Pandey, associate VP, DDB Mudra.
Stockmarket analysts though are a little cautious about this face-off as they believe that DB Corp will not be impacted because of the entry of JPL from a short to medium term perspective. But they say that Patrika would be impacted as Jagran would become aggressive to win back the No. 2 slot in MPC. The analysts also feel that the price paid (net of tax benefits) is inexpensive and should derive benefits in the medium to long-term.
For the cash-rich Jagran group, the Nai Dunia acquisition follows that of Mid-Day two years ago and the management plans that Nai Dunia will be consolidated once a year just like Mid-Day. Saala Jagran No 1 print media group ban gaya… By A Correspondent
Question: Until last fiscal, which was the largest print publishing house in the country? Answer: No, the answer is not Dainik Jagran. It’s Dainik Bhaskar, In fact, Jagran was at No 3 until two days ago, just behind the BCCL group. But with the buyout of the Nai Dunia group, Jagran now becomes the largest print media group in the country. Check tables below:
Note: MRUC does not share detailed IRS numbers with the media. Given that we had adequate time for the confirmation of the Nai Dunia buy, we collected the information from what MRUC shared with us and from respective media entities.
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Tag: Vijaydutt Shridhar
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Jagran Prakashan makes giant entry to Madhya Pradesh & Chhattisgarh with Nai Dunia buy With Nai Dunia in the bag, Jagran is #1 print group
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Awarded the Padma Shri for Literature, former editor of Navbharat Vijaydutt Shridhar has devoted his life to the task of preserving India's history through the window of its print media. He tells MxMIndia that it's a labour of love, which is its own reward. Vijaydutt Shridhar: Passion for the printed word
The Padma Shri award for Sahitya (Literature) this year has gone to author Vijaydutt Shridhar, 60, former editor of Navbharat and the only journalist on the list. The award is well-deserved for the man who has almost single-handedly taken up the task of preservingIndia’s history through the lens of time, past and present – the newspapers, magazines and periodicals.In an email and telephonic interview with MxM India’s Archita Wagle, Mr Shridhar talks about his passion, the Madhavrao Sapre Samachar Patra Sangrahalaya evam Shodh Sansthan in Bhopal, Madhya Pradesh.
Q: Tell us about your career, and what you are doing now.
I am retired now and I concentrate on the museum and my books nowadays. Before that I was the director at Makhanlal Chaturvedi University of Journalism and Communications. I also worked as the editor of Navbharat. I have worked with several state level committees related to journalists and newspapers in Madhya Pradesh. I was a member of the Madhya Pradesh Vidhan Sabha Press gallery committee for two decades.
Q: What prompted you to start the Sapre Sangralaya in 1984?
I was working on my book Shabd Satta, which chronicles 150 years of journalism in Madhya Pradesh. I had to travel far and wide to research for my book. While researching for the book, I realised that there was no systematic classification of the material that I required. Authenticating the material was also difficult, and posed a lot of problems for me as history is incomplete without properly verified material. I visited individual collectors, but the newspapers in their collections had started deteriorating. This sparked the idea of preserving newspapers.
Q: How did you get the material for starting the museum?
I met Pandit Rameshwar Guru, a veteran journalist, Hindi poet and Mathematics teacher. He also had an extensive collection of journals, newspapers and periodicals going back two generations. But due to family obligations he was ready to donate them. He had two conditions, though. One, he wanted the material to be saved systematically and in the name of future generations. Two, the collection or the museum which would house them will not be handed over to the government or any university as Mr Guru feared that the material would not be cared for properly at either places and that the universities are more concerned with their salaries than preserving the heritage that such a collection represents.
Q: Can you tell us more about the Sapre Sangralaya and the work it does?
After Mr Guru agreed to donate his collection, a society was set up in the name of Madhavrao Sapre, the pioneer of Hindi journalism. The ideology that Lokmanya Tilak had when he started Kesari, was the same ideology that Shri Sapre had, so he launched Hindi Kesari. The Sapre Sangralaya collects all kinds of old periodicals and newspapers in all the languages – Hindi, Marathi, Urdu and so on – for the purpose of preserving them. Earlier I used to travel to different places scouting for materials. I once bought an old collection of Punch magazines from a man who sold them for a song because he wanted to pay for his liquor. But as time passed, people came to know about the work we are doing and they donate their private collections to us, knowing that we will take good care of the material they donate.
Q: How are the footfalls in the museum? Do you get a lot of visitors?
The museum is acknowledged as a research centre by many universities. We mostly get journalists and academicians who come to the museum as they know that what they might not get anywhere else, they will find it here. Once, the editor of an established and well-known Hindi newspaper came to the museum because he wanted to see a copy of a particular issue for January 1962 of his paper. It was a moment of pride that we had the issue which their archives didn’t have.
Q: How do you arrange for the funding for the Sangralaya?
The Central and the state government provide funding for the museum but they never interfere in the day-to-day working. We also receive donations. So funding is not a problem for us.
Q: Any future plans for the Sangralaya?
You should know that the paper a newspaper is printed on is not of the finest quality. We have newspapers and journals dating from the 1600s. Constant handling also accelerates the deterioration. We have preserved the material we have gathered so far by chemical treatment, pest control, laminating the old papers, and transferring the old papers onto microfilm. So far, we have transferred material up till the 19th century. But now we are looking at digitising the content we have. We are looking at transferring all the material to DVD so that people who come to the museum to look at these newspapers for their research will be able to go through the DVDs and the newspapers can be preserved better.
Q: The website for the museum is in Hindi. Would you consider having a website in English, in order to reach a wider audience?
The suggestion that you have given is a good one. We are translating the summary for the website in to English and other languages… but only the summary, the rest of the website will be in Hindi as that is the language we work in. But once we translate the summary, that will provide enough information for people about what we do.
Q: You are an author; any work in progress on that front?
I have written three books and now I am in the process of completing my fourth. My first book was Bhartiya Patrakarita Kosh, which is an in-depth study of Indian journalism in the pre-Independence period (1780-1947). The book covered the whole sub-continent -India,Bangladesh and Pakistan. It is the history of Indian journalism in all languages of country – origin, growth, struggles, achievements and contribution.
My second book was Shabd Satta which covered the history of 150 years of journalism in Madhya Pradesh from 1849 to 1999. My book Choutha Padav is the history of 1000 years of Bhopal with special reference to BHEL. Now I am working on my latest work, Pahela Sampadkiya, which is a collection of the first editorial in prominent Hindi language newspapers. The book has about 28 editorials and my comments and analysis on each of the editorial.
Q: How do you find time to manage both your writing and your day-to-day commitments?
Now that I have retired, I can devote more time to writing and my work at museum. So it is not difficult.
Q: How does it feel to have your efforts recognized by the government in the form of the Padma Shri in Sahitya?
I didn’t expect to be awarded. I have been working on the museum for the last 28 years. I never expected to get the award as the government doesn’t declare it in advance, but it feels good.
