MAM
Ad agencies under service tax stress
MUMBAI: Advertising agencies in India, which have not built scale, are in danger of being badly bruised from a new rule that comes into force from 1 July.
The gravity of the situation runs deep into the heart of the advertising business, prompting reactions from across the industry that huge cash flow requirement could lead to the closure of small and medium-sized agencies.
The culprit is the new Point of Taxation Rules 2011 under Service Tax that require advertising agencies to pay the tax as soon as the invoice is raised (or services are completed), irrespective of payment collection. Also, service tax must be paid within 14 days of providing service.
There are around 1,000 ad agencies registered under Indian Newspaper Society (INS), out of which 960 run small and medium-sized operations.
Leo Burnett CEO Arvind Sharma said, “Smaller vendors or agencies depend completely on their payments from clients to pay-off their debts and taxes. Huge cash flow requirement may lead to closure of medium and small agencies.”
That may be an exaggeration but it has made the ad agencies act collectively. The Advertising Agencies Association of India (AAAI), the apex body of advertising agencies in the country, has set up a core five-member team to deal with the repercussions of the POT rules.
The team comprises Madison World chairman and MD Sam Balsara, AAAI president Nagesh Alai, Aegis Group chairman India and CEO South East Asia Ashish Bhasin, Group M CEO South Asia Vikram Sakhuja and Lodestar Universal India CEO Shashi Sinha.
Representatives of the ad industry will be meeting the government officials on Friday to discuss this burning topic.
Balsara is aghast with the proposed changes. “Earlier the payment of service tax was linked to actual collection of service tax for the services provided. Now the agencies are expected to pay 10.3 per cent service tax even before receiving the payments,” he said.
The health of agencies could further weaken as the service tax payment would be even on bad debts. While the government seeks to advance collection of service tax, there is no provision to adjust excess service tax collected. There is no provision for adjustments of bad debts or settlement based on re-negotiated price.
“The new “Point of Taxation Rules 2011″ doesn‘t differentiate between various service providers. How can one equate an on-off service provider of service (pandal contractor or beauty parlour owner) to that of business-to-business service providers with long-term contracts,” AAAI has said in an open letter to the government.
Sharma cautions, “It is a huge challenge for agencies. We don‘t have goods that we can secure. In a business already working under marginal margins, additional taxes will be debilitating.”
Sharma said that the agencies will get penalised from all sides. Everyone attached with the advertising sector will be affected including the printers and stationary providers as their bill payments will be delayed. He pointed out that this tax arrangement would work well for funded businesses, but would prove to be completely disruptive for the advertising sector.
The new provisions would force the agencies to look for bank credit, which, if obtained, can go up to 20 per cent of an agency‘s total revenue.
Bhasin fears that these provisions “will encourage malpractices” and affirmed that “the rule is not implementable”.
MediaCom MD Debraj Tripathy said given the fact that agencies work on such thin margins, the new rules are very difficult to comply with, because of the time needed to bill the clients.
Law & Kenneth India CEO and managing partner Anil Nair noted that if this rule is implemented, the training and development programmes will be the first to get affected.
A senior industry official said he is skeptical of the industry‘s ability to influence the government decision, “Creative guys are at the end of the money chain and no one seems to be taking them seriously. This will be the first time that the industry would be able to influence the government‘s decision, if it happens.”
Noticeably, the industry honchos unanimously agreed on one point: the government‘s inability to understand the peculiarities of the advertising sector.
Brands
Netflix India names Rekha Rane director of films and series marketing
Streaming giant bets on a seasoned marketer who helped build Amazon and Netflix into household names
MUMBAI: Netflix has put a proven brand builder at the helm of its films and series marketing in India, naming Rekha Rane as director in a move that signals sharper focus on audience growth and cultural cut-through in one of its most hotly contested markets.
Rane steps into the role after seven years at Netflix, where she has quietly shaped how the platform sells stories to India. Her latest promotion, effective February 2026, crowns a run that spans brand, slate and product marketing across originals, licensed content and new verticals such as games.
A strategic marketing and communications professional with roughly 15 years’ experience, Rane has spent much of her career building technology-led consumer businesses and new categories, notably e-commerce and subscription video on demand. She was part of the early push that introduced Amazon.in, Prime Video and Netflix to Indian homes, then helped turn them into everyday brands.
At Netflix, she most recently served as head of brand and slate marketing for India from March 2024 to February 2026, leading teams across media and marketing for global and local content portfolios. Before that, as manager for original films and series marketing, she led IP creation and go-to-market strategy for titles including Guns and Gulaabs, Kaala Paani, The Railway Men* and The Great Indian Kapil Show, spanning both binge and weekly-release formats.
Her earlier Netflix roles covered product discovery and promotion in India and integrated campaign strategy to drive conversations around the content slate, product awareness and brand-equity metrics.
Before Netflix, Rane logged more than three years at Amazon in brand marketing roles in Bengaluru. There she handled national and regional campaigns for Amazon.in, worked on customer assistance programmes in growth geographies and contributed to the go-to-market strategy for the launch of Prime Video India.
Her career began well away from streaming. At Reliance Brands in Mumbai, she worked on retail marketing for Diesel and Superdry. A stint at Leo Burnett saw her work on primary research for P&G Tide, mapping Indian shoppers’ paths to purchase. Earlier still, at Orange in the United Kingdom, she rose from sales assistant to store manager, running a team and owning monthly P&L for a retail outlet.
The arc is telling. As global streamers fight for attention in a crowded Indian market, executives who understand both mass retail behaviour and digital habit-building are prized. Rane’s career sits at that intersection.
For Netflix, the bet is simple: in a market spoilt for choice, sharp marketing can still tilt the screen. And with Rane now leading the charge, the streamer is signalling it wants not just viewers, but fandom.
Brands
Orient Beverages pops the fizz with steady Q3 gains and rising profits
Kolkata-based beverage maker reports stronger revenues and profits for December quarter.
MUMBAI: A fizzy quarter with a steady aftertaste that’s how Orient Beverages Limited, the company that manufactures and distributes packaged drinking water under the brand name Bisleri closed the December 2025 period, as the Kolkata-based drinks maker reported improved revenues and a healthy rise in profits, signalling operational stability in a competitive beverage market.
For the quarter ended December 31, 2025, Orient Beverages posted standalone revenue from operations of Rs 39.98 crore, up from Rs 36.42 crore in the previous quarter and Rs 33.53 crore in the same quarter last year. Total income for the quarter stood at Rs 42.24 crore, reflecting consistent demand and stable pricing across its beverage portfolio.
Profit before tax for the quarter came in at Rs 3.47 crore, a sharp improvement from Rs 1.31 crore in the September quarter and Rs 0.39 crore a year ago. After accounting for tax expenses of Rs 0.79 crore, the company reported a net profit of Rs 2.68 crore, nearly three times the Rs 0.99 crore recorded in the preceding quarter.
On a nine-month basis, the momentum remained intact. Revenue from operations for the period ended December 31, 2025 rose to Rs 117.66 crore, compared with Rs 106.95 crore in the corresponding period last year. Net profit for the nine months climbed to Rs 5.51 crore, more than double the Rs 2.18 crore reported in the same period of the previous financial year.
The consolidated numbers told a similar story. For the December quarter, consolidated revenue from operations stood at Rs 45.06 crore, while profit after tax came in at Rs 2.06 crore. For the nine-month period, consolidated revenue touched Rs 133.57 crore, with net profit of Rs 4.49 crore, underscoring the group’s improving profitability trajectory.
Operating expenses remained largely controlled, with cost of materials, employee benefits and other expenses broadly aligned with revenue growth. The company continued to operate within a single reportable segment beverages simplifying its cost structure and reporting framework.
The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 7 February 2026. Statutory auditors carried out a limited review and reported no material misstatements in the results.
In a market where margins are often squeezed by input costs and competition, Orient Beverages’ latest numbers suggest the company has found a reliable rhythm not explosive, but steady enough to keep the fizz alive.
MAM
Washington Post CEO exits abruptly after newsroom cuts spark backlash
Leadership change follows layoffs, protests and a bruising battle over trust.
MUMBAI: When the presses are rolling but patience runs out, even the editor’s chair isn’t safe. The Washington Post announced on Saturday that its chief executive and publisher Will Lewis is stepping down with immediate effect, bringing a sudden end to a turbulent two-year tenure marked by financial strain, newsroom unrest and public backlash.
Lewis’s exit comes just days after the Bezos-owned newspaper announced sweeping job cuts that triggered protests outside its Washington headquarters and a wave of anger from readers and staff. While newspapers across the US are grappling with shrinking revenues and digital disruption, Lewis’s leadership had increasingly come under fire for how those pressures were handled.
The Post confirmed that Jeff D’Onofrio, a former Tumblr CEO who joined the organisation last year as chief financial officer, has taken over as CEO and publisher, effective immediately. In an email to staff, later shared by reporters on social media, Lewis said it was “the right time for me to step aside.”
The leadership change follows the announcement of large-scale redundancies earlier this week. While the Post did not officially confirm numbers, The New York Times reported that around 300 of the paper’s roughly 800 journalists were laid off. Entire teams were dismantled, including the Post’s Middle East bureau and its Kyiv-based correspondent covering the war in Ukraine.
Sports, graphics and local reporting were sharply reduced, and the paper’s daily podcast, Post Reports, was suspended. On Thursday, hundreds of journalists and supporters gathered outside the Post’s downtown office in protest, calling the cuts a blow to public-interest journalism.
Former executive editor Marty Baron described the moment as “among the darkest days in the history of one of the world’s greatest news organisations.”
Lewis defended his record in his farewell note, saying “difficult decisions” were taken to secure the paper’s long-term future and protect its ability to publish “high-quality nonpartisan news”. But his tenure coincided with growing scrutiny of editorial independence at the Post.
Owner Jeff Bezos faced criticism for reining in the paper’s traditionally liberal editorial page and blocking an endorsement of Democratic presidential candidate Kamala Harris ahead of the 2024 US election. The move was widely seen as breaking the long-standing firewall between ownership and editorial decision-making.
According to a Wall Street Journal report, around 250,000 digital subscribers cancelled their subscriptions after the paper declined to endorse Harris. The Post reportedly lost about $100 million in 2024 as advertising and subscription revenues slid.
While the wider newspaper industry continues to battle declining print advertising and the pull of social media, some national titles have stabilised. Rivals such as The Wall Street Journal and The New York Times have managed to build sustainable digital businesses, a turnaround that has so far eluded the Post despite its billionaire backing.
As Jeff D’Onofrio steps into the role, the challenge is stark, restore confidence inside the newsroom, win back readers who walked away, and prove that one of America’s most storied newspapers can still find its footing in a brutally competitive media landscape.
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