Tag: IndusInd Media

  • Vynsley Fernandes becomes CEO NXTDigital

    Vynsley Fernandes becomes CEO NXTDigital

    Vynsley Fernandes has been known as the CEO of Hinduja group-owned Indusind Media & Communications which runs cable TV MSO InCable TV, a position he took up in August 2018. As of last month, his role and designations have changed: he has been redesignated as CEO of the theheadend in the sky (HITS) venture NXTDigital and president of IndusInd Media.

    Since joining, Vynsley or Vyns as he is known has managed to return the struggling NXTDigital businesses to profitability, thanks to better management at IMCL which he headed

    On a consolidated basis, revenues grew at NXTDigital by 65 per cent over FY19, from Rs 704.62crore to Rs 1,162.10crore; operating EBIDTA rose significantly to Rs 218.01crore against a loss of Rs 72.61crore; its PAT is a healthy Rs 110.05 crore as against a loss of Rs 303.43 crore in FY19.

    Thanks to the great showing, Vyns got elevated to CEO of NXTDigital with the additional responsibility of IMCL.

    Vyns updated his designation on linkedin today. 

     

  • IndusInd Media board gives nod for rights issue

    MUMBAI: Hinduja Ventures Limited has informed the Bombay Stock Exchange Limited pursuant to Regulation 30(9) and 30(12) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that the Board of Directors of the company noted that IndusInd Media & Communications Limited, a subsidiary of the Company (“IMCL”) vide its letters dated 24 February, 2017, informed the company that the Board of Directors of IMCL has approved:

    a) the issue of 36,953,438 equity shares of face value of Rs. 10/- each for cash at a premium of Rs. 195/- per share aggregating to Rs. 7,57,54,54,790/- on the rights basis  in the proportion of 1:2 i.e. one equity share for every two shares held.

    b) the redemption of 27,03,60,000 10% Redeemable Cumulative Preference Shares of   Rs. 10/- each held by the Company in IndusInd Media & Communications Limited, a subsidiary of the Company, according to a press release.

    2. Approved to renounce 2,23,29,292 equity shares of Rs. 10/- each offered to the Company by IndusInd Media & Communications Limited, a subsidiary of the Company on rights basis in favour of Grant Investrade Limited, a wholly owned subsidiary of the Company [“GIL”].

    3. The proceeds of the rights issue will be utilised by IMCL for Redemption of Preference Shares, Repayment of ICDs [including ICDs provided by GIL] and the balance if any, for general corporate purpose.

  • Hinduja Ventures increases stake in Indusind Media

    Hinduja Ventures increases stake in Indusind Media

    MUMBAI: The Hinduja group is in a consolidation mood. Especially in its media business. Group company Hinduja Ventures informed the Bombay stock exchange today that it was buying both ordinary and preferential shares of Indusind Media & Communications Ltd (IMCL) from another Hinduja venture Grant Investrade Ltd (GIL).

    IMCL runs the InCable Net, IN Digital, IN2Cable and IN Phone businesses, while GIL is getting ready to aggressively roll out its HITS platform NXT Digital after its launch last year.

    In the communiqué, HVL has stated that it will be buying 43.03 lakh Rs 10 face value shares (equal to 5.82 per cent of IMCL’s paid up capital) of IMCL at a premium of Rs 456 per share, and it will also purchase 7.04 million preference shares (equal to 26.02 per cent of IMCL’s paid up preference capital) of Rs 10 each at par from GIL.

    HVL’s holding in IMCL will rise to 61.91 per cent from 56.09 per cent once the transaction is completed by 20 July 2016.

    IMCL, according to the notification had a turnover of Rs 434- odd crore and a net worth of 139.20 crore in the year ended 31 March 2016.

    Observers say that the transaction will allow some funds to be infused into GIL as it moves to take NXT Digital to its next phase.

  • Hinduja Ventures increases stake in Indusind Media

    Hinduja Ventures increases stake in Indusind Media

    MUMBAI: The Hinduja group is in a consolidation mood. Especially in its media business. Group company Hinduja Ventures informed the Bombay stock exchange today that it was buying both ordinary and preferential shares of Indusind Media & Communications Ltd (IMCL) from another Hinduja venture Grant Investrade Ltd (GIL).

    IMCL runs the InCable Net, IN Digital, IN2Cable and IN Phone businesses, while GIL is getting ready to aggressively roll out its HITS platform NXT Digital after its launch last year.

    In the communiqué, HVL has stated that it will be buying 43.03 lakh Rs 10 face value shares (equal to 5.82 per cent of IMCL’s paid up capital) of IMCL at a premium of Rs 456 per share, and it will also purchase 7.04 million preference shares (equal to 26.02 per cent of IMCL’s paid up preference capital) of Rs 10 each at par from GIL.

    HVL’s holding in IMCL will rise to 61.91 per cent from 56.09 per cent once the transaction is completed by 20 July 2016.

    IMCL, according to the notification had a turnover of Rs 434- odd crore and a net worth of 139.20 crore in the year ended 31 March 2016.

    Observers say that the transaction will allow some funds to be infused into GIL as it moves to take NXT Digital to its next phase.

  • MSOs divided on Trai’s ad regulation policy

    MUMBAI: Trai’s ad regulation proposal has divided two of the country’s leading multi-system operators (MSOs) into opposite camps with Digicable coming out in support while Hinduja Ventures-owned operator IndusInd Media and Communications Ltd opting for a no-regulation line.

    The regulator had initiated the policy to regulate ads on a clock hour basis on the premise that the country is moving towards digitisation and subscription income will become the primary source of revenue stream for broadcasters, an argument which the broadcasters have trashed outright.

    However, Digicable in its response to Trai’s consultation paper ‘Issues Related to Advertisements in TV Channels’ has suggested the cap to be only 10 minutes (eight minutes for commercials and two minutes for self-promotion) instead of 12 minutes proposed by Trai for FTA channels.

    For pay-channels, Digicable favours a cap of eight minutes (six minutes for commercials and two minutes for self-promotion) while it is against allowing commercials on HD channels except for two minutes in a clock hour.

    “If the broadcaster agrees to have a 100 per cent advertisement free channel, then he can have total forbearance on the subscription rate charged for that channel,” Digicable said.

    It also demanded that certain channels which are presently FTA in digital domain but pay in analog should be treated as pay till they have a uniform status across the country.

    IIMCL, on the other hand, favoured a more open market policy where consumers must be allowed to decide whether they want an ad-free channel or a free to air channel subsidised by advertisements.

    “It is up to the subscriber to opt to watch a channel with advertisements at a lower cost or pay premium to watch a channel without ads. Broadcasters on the other hand will automatically regulate the ad time as too many ad breaks will drive away subscribers, thus affecting their resources,” IIMCL said.

    Both the MSOs were in agreement that in case of sporting events, advertisements should be carried only during disruptions as most of the sportscasters are pay channels with certain sports like cricket being monetised heavily.

    In the case of News and Current Affairs channels, the two operators agreed on Trai’s proposal to run not more than two scrolls at the bottom of the screen and occupying not more than 10 per cent of the screen space for carrying non-commercial scrolls and tickers.

    The audio level of the advertisements should also not be higher than the audio level of the programme, both Digicable and IIMCL held.

    Stressing that India is not a pay market as consumers do not pay for content, Cable Operators Federation of India is of the view that the so called pay channels were introduced in India in an illegal way in the non-addressable networks by forcing cable operators to pay to receive them, once they became popular as FTA channels. For the last 18 years pay channels have been exploiting the cable operators using all unethical ways like blackmailing with threats of a black out, arbitrary increase in rates, forcing bouquets on consumers and making cartels for distribution.

    Cofi wants FTA channels to get 12 minutes ads in a clock hour and pay channels not to be allowed to carry any ads as they would get 100 per cent subscription in the digital regime.

    The cable association did not favour allowing ads in sports channels as they already charge the highest amount amongst all pay channels. It also agrees to permitting only full screen ads and not more than two scrolls at the bottom of a page for news and current affairs channels.

    Also Read:

    Trai‘s ad review policy to hurt biz models of sportscasters

    News channels ask Trai to sort out carriage before capping ad time

    TV networks flay Trai for ad regulation

  • Cas: MSOs strain to meet demand for boxes

    Cas: MSOs strain to meet demand for boxes

    MUMBAI/DELHI: Multi-system operators (MSOs) are under stress and strain to meet the demand for set-top boxes (STBs) as conditional access system (Cas) has come into effect in the notified areas of Mumbai, Delhi and Kolkata.

    “We are moving 5000-6000 STBs a day in Mumbai,” says IndusInd Media and Communications Ltd. director-in- charge Ravi Mansukhani.

    Wire & Wireless India Ltd CEO Jagjit Singh Kohli says that while he can’t give a number in terms of the number of boxes being seeded, business has been brisk and smooth. “There have not been any technical glitches. The Cas deployments in the notified areas by all the cable operators has so far been much more than what direct-to-home (DTH) has achieved in these pockets.”.

    For those who are taking the boxes, MSOs are providing all the pay channels for a trial period of 15 days. “We want to give them some time before they can decide on the channels that they want to pay for. After this period, they can choose what they want and they will be billed only for what they have decided to take,” says Mansukhani.

    Adds WWIL executive vice president Arvind Mohan: “This is a transition period, so we are giving all the channels to all the STB subscribers. The processing of the forms being filled up takes some time. We are giving the subscribers a free run of all the channels. By 15 January, the entire system will be in place, and billing will be for the month depending on the channels they have selected.”

    So how long does it take once a consumer orders for a STB? With so many people wanting a box at the same time, the maximum time it would take to get the system installed is a day as it has to be fed into the smart card and billing system, says Mansukhani.

    Interestingly, there are indications that at the ground level there is some confusion in terms of pricing. For instance, this writer, residing in the Colaba area of South Mumbai, paid Rs 2000 on 1 January for a box while the MSO had recently announced a reduction in the price to Rs 1500. “There are some confusions still prevailing on the ground about the prices and packages on offer,” admits a local cable operator.

    Speaking on behalf of the broadcasters, Star India’s distribution head Tony D’Silva says that it is too soon to comment on the adoption rate. “We had expected that there would be some confusion. We are adopting a wait and watch policy. In a few days time the situation should be clear.”

    Zee Turner CEO Arun Poddar says that there is certainly a demand and supply mismatch across all the MSOs. He concedes some last mile operators would not be communicating adequately with consumers, thus leading to confusion.

    Despite some confusion, the Cas rollout in South Delhi is happening steadily as there is a rush for the STBs.

    SN Sharma of Hathway denied that there is any shortage of boxes. “This is a continuous process and we are getting consignments from our Korea company on a daily basis. There is a lag of time for getting connected because the local cable operator has a manpower shortage,” he says.

    The time between a request coming in and a box being connected is about an hour, he adds. “The LCOs have about five or six people working, who have to attend to calls for repairs, collect payments and also deploy the boxes. So the connection giving ability is in the same ratio as the staff strength.”

    According to RWA president GS Gulati, most of the residents in Delhi were still waiting and have not subscribed to either cable or DTH operators. “The cable operator has left a box for me at my shop, but I have not got connected, because we do not know what is better, this or DTH.”

    In some areas, people complained about technical glitches. Sometime during the evening of 1 January, Cas boxes in some areas of south Delhi went blank for about 10 minutes first, and then intermittently for shorter durations about three times.

    “This should not be the case, because the boxes are highly efficient. This must be some fault like a loose connection or a person tinkering too much with the remote control, as people do with all new things,” Sharma says.

  • HTMT board approves demerger, media biz to be in one entity

    HTMT board approves demerger, media biz to be in one entity

    MUMBAI: Hinduja TMT Ltd. is demerging its IT/BPO business into a new company, while simultaneously merging its media and content subsidiary InNetwork Entertainment Ltd (INEL) into the residual entity. Both the companies will be listed on the Bombay Stock Exchange and National Stock Exchange.

    HTMT’s current shareholders will be allotted shares of both the companies in proportion to the capital employed in the respective businesses. “The appointed date of the demerger would be 1 April,” the company said in a release.

    In simple terms, all the existing assets of HTMT barring the IT/BPO business will be in the residual entity. This includes IndusInd Media and Communications Ltd (IMCL) which operates cable TV under the Incablenet brand, a cable Hindi movie channel, and the broadband business. What this means is that a media holding company will emerge after the merger of INEL and it will also have under its umbrella IMCL.

    Indiantelevision.com had earlier reported that the media business was to be brought under a holding company. The HTMT board, which met today, has granted approval to the demerger.

    The telecom holding in Hutch will also reside in the residual entity. HTMT plans to exit from the telecom business by selling its entire stake. It controls an effective stake of 5.11 per cent in Hutch, a leading GSM service provider, through a subsidiary Indusind Telecom Network Ltd. “The company has received offers for purchase thereof which are under consideration. The board has set up a committee of directors to appraise the offers, negotiate and finalise the deal,” HTMT said in a release.

    The money raised from the sale will, thus, be in the media company. “The board will decide where to make the investments. The name of the residual entity will also be decided later,” IMCL executive director, corporate services, Ashok Mansukhani said. The valuation of INEL will also be carried out, he added.

    Commenting on the demerger, HTMT chairman Ashok P Hinduja said “the related restructuring will unlock immense shareholder value. While the current market cap is about Rs 22.2 billion, the sum of parts valuation is significantly higher, which could get unlocked. It will also go a long way in speeding up inorganic growth opportunities in both the technology and media/telecom companies, apart from aiding the induction of strategic and/or financial partners. Operational efficiencies in both the resultant companies would also increase”.

    HTMT’s technology business employs over 7000 persons (with over 3000 overseas employees) and ranks among the few BPO companies with a global delivery model with presence in five countries and significant revenues generated overseas. It has domain expertise in healthcare and insurance, financial services, manufacturing, telecom, pharmaceuticals, consumer electronics, household products, energy and utilities.

    According to a company statement, the media business is well poised to take advantage of the emerging business opportunities in content and distribution that have recently opened up and is in negotiation with several leading players for collaborations and contracts in these spaces. “It would also continue to be the holding company of IMCL, a leading multi-system operator (MSO) with extensive intra-city fiber networks, with 6000 km of trunk and access HEC networks, 80 per cent of which is 2-way enabled. IMCL has a presence in 14 cities (9 of which are big cities) with over 40 per cent market share in most of these markets,” the release added.

    HTMT believes the demerger will unlock individual values. “The demerger and related restructuring would enable the full potential of all the diverse businesses to be realized and take the companies to the next level,” said Hinduja.

    Added Mansukhani: “The cable business has the potential to be a money-spinner in future.”.