ZEE REGROUPS FOR THE NEXT ASSAULT
Article Abstract:
Zee Network promoter Subhash Chandra is starting his third international channel in USA along with Echostar, the direct-to- home (DTH) service provider. He operates 2 international channels from UK and Africa. He plans to merge all the international channels into a holding company, called Zee Multimedia Worldwide (ZMW). It is to be based in Mauritius. ZMW will offer equity of $70 million (Rs280 crore) to institutional investors. The Rs273 crore Zee Telefilms Limited (ZTL) and Ambience Space Sellers Ltd (ASSL) have been merged. Foreign institutional holding in ZTL will be raised to 30 percent. Its scrip price has moved up from Rs150 to Rs500. Rupert Murdoch and Subhash Chandra have entered into a 50:50 partnership for a broadcasting venture. Murdoch has offered Rs700 crore to Zee TV, 50 percent stake in Asia Today Ltd (ATL) and 50 percent stake in SitiCable. In the next 2 years, Subhash Chandra may have to invest Rs1,000 crore in his companies. The investment in Afro-Asian Satellite Communications (ASC) has been reduced to $650 million from $1 billion. In the ASC project, Subhash Chandra's share is Rs130-140 crore. Once Subhash Chandra buys out the 50 percent stake of Murdoch in ATL, he plans to merge it with ZTL. ZTL may effect a time-bound asset transfers. Zee TV is almost stagnating in its growth. Its advertisement revenues grew by 40 percent in 1997-98. Programme sales have remained the same. Sony, its rival, has 13 million viewers against Zee's 20 million. The Zee film library will need Rs30-40 crore. Zee TV had bought Ajitabh Bachchan's TV Asia for Rs110 crore ($17 million). Zee TV focuses on the sale of air time Zee TV has merged the sales division of EL and Zee Cinema. It has merged Zee Asia and Zee Europe, which has given Zee Europe access to 2,500 films and 10,000 hours of programming. (rk)
Comment:
Plans to merge all international channels into a holding company, called Zee Multimedia Worldwide
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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THE PACK IS OPEN, WILL THEY LIGHT UP?
Article Abstract:
The Indian government has announced a new tobacco policy in September 1998 allowing foreign tobacco companies to set up wholly owned subsidiaries in India. The policy is expected to attract large amounts of foreign direct investment. Increased competition will lead to increase in offtake of tobacco crop and create better prices for tobacco farmers particularly in Andhra Pradesh. India's tobacco farmers have been affected by the 45 percent fall in tobacco prices between June 1998-August 1998. Currently multinational, British American Tobacco holds 34 percent stake in ITC and 32 percent stake in VST Industries. Phillip Morris holds 34 percent stake in Godfrey Philips India. As per the guidelines of the Foreign Investment Promotion Board (FIPB), these multinationals have to secure the approval of their current partners before setting up wholly owned subsidiaries. Rothmans of Pall Mall has applied to the FIPB for setting up a 100 percent subsidiary. Rothmans plans to invest $150 million in India. (tsm)
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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INFORMATION TRACK
Article Abstract:
MBL-RCG, the research agency in Hyderabad, has launched a new division, MBL-Techno. The new division will focus on research in information technology (IT), telecommunication and business automation. MBL-RCG is a subsidiary of NFO Worlwide which is the sixth largest research agency globally. MBL-Techno thus has the advantage of accessing NFO's IT research company, Prognostics. Using Prognostic's methodology, the clients can find out the status of their product in the market, get to know their strengths, weaknesses, brand positions and so on. It also enables the clients to have minute details about the IT industry world wide. (um)
Comment:
Launches new division, MBL-Techno, that would focus on research in information tech, telecom & bsns automation
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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