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Tag: Reliance Industries

  • Reliance Industries announces schedule for Network18 open offer

    Reliance Industries announces schedule for Network18 open offer

    MUMBAI: After announcing its open offer to acquire Network18 group’s public shareholding last week, Reliance Industries (RIL) has announced the schedule for the entire offer that will run between June and August.

     

    12 June has been fixed for filing the Network18, TV18 and Infomedia draft letters with the securities and exchange board of India (SEBI) while 26 June has been fixed as the last date for competitive offer. Unless SEBI asks for additional information, it will give in its observations on the letters by 3 July. The identified date has been kept as 7 July.

     

    The public shareholders should receive the letters of offer by 14 July which can be revised till 15 July. The committee of independent directors of the three companies shall give their recommendation to shareholders of target company by 17 July. 18 July is when the offer of opening public announcement will be published in newspapers. Tendering period opens on 21 July and ends on 4 August.

     

    The last date for communicating the rejection/acceptance and completion of payment of consideration or refund of equity shares to the shareholders of the company is 20 August while the last date for publication of post-offer public announcement in the newspapers is 27 August.

     

    A content licence agreement, dated 27 February 2012 was signed between Network18 and its subsidiary TV18 and Reliance Jio Infocomm, RIL’s subsidiary for content transmission through its 4G broadband network. Reliance Jio Infocomm shall have preferential access to its content on a first right basis.

  • Providence Equity to buy out Star India from Star CJ venture

    Providence Equity to buy out Star India from Star CJ venture

    Mumbai: Star India has been getting out of non-core activities to focus on its  broadcasting (entertainment and sports) and digital businesses. Among the operations it bailed out on figure cable distribution where it exited from Hathway Cable & Datacom and news where it moved out from Media Content & Communication Services (the Star News venture).

     

    Earlier this week, both Korea Bizwire and  Variety.com reported that Star India has decided to sell its 50 per cent stake in the Indian home shopping joint venture venture Star CJ with South Korea’s CJ O Shopping  to Providence Equity Partners following approval from the previous Indian government.  The approval process took close to a year and got the Foreign Investment Promotion Board go-ahead just as the previous government’s tenure was ending.

     

    The quantum that the $40 billion corpus Providence Equity would be paying to buy out Star’s holding was not disclosed but it would be done through a Mauritian subsidiary of the private equity fund. The deal between Star and Providence was signed on 29 May, said the Korea Bizwire report.

     

    The remainder 50 per cent equity will continue to be with CJ O Shopping, which is part of the CJ group.

     

    Both CJ and Star have invested $55 million in the joint venture, which began in 2009 as a six hour slot on Star Utsav, which was then expanded into a 24 hour Star CJ home shopping channel. It reportedly had estimated revenues of about $98 million and can continue to use the Star CJ brand for the next 12 months.

     

    CJO Shopping is optimistic of ramping up business through Star CJ following its bringing in Providence as a “financial partner.”  Providence also owns equity in European home shopping venture  HSE24, apart from having holdings in Indian cable TV distribution company Hathway Cable & Datcom and UFO Moviez.

     

    The move comes at a time when the Network18 (now Reliance Industries) owned HomeShop18 is preparing for a public offering in New York.

  • Network18’s Raghav Bahl’s goodbye email

    Network18’s Raghav Bahl’s goodbye email

    MUMBAI: Even as Reliance Industries and Mukesh Ambani cruise on their path to acquire control of the Network18 group, promoter and founder Raghav Bahl – along with his wife Ritu Kapur – sent out an email  to the entire staff of the group explaining their position and their departure from the enterprise they built up.  

     

    The email is pretty candid and begins with them stating that “yesterday, Ritu and I effectively ended our entrepreneurial leadership of N18 by agreeing to exit our shareholding (although I would be around to ensure a smooth transition).”

    Bahl exudes confidence in Mukesh Ambani and RIL as the potential owners of the Network18 group. “Believe us, the Group is in terrific hands. Mr Ambani is a visionary and truly good human being. And we have no doubt that Network18 would soar into the “cloud” under this dispensation. All of you have very good cause to be excited and optimistic about the future,” he says in the email.

    The husband wife team then go on to thank the thousands of team mates “whose collective tejasvi karma has buoyed N18 to where it is today. Our heartfelt gratitude towards all of them! (We would like to make a special mention of our very own Vandana, who was the first manager-cum-driver-cum-lights”man” of TV18 in the early 90s).” (The reference is to his sister Vandana Mallick who was like the rock of gibraltar for Bahl through his career and who resigned from the group earlier in the day today).

    They end by asking the entire employees of the Network18 group to “wish us well as we embark on our next quest – we are, as usual, utterly positive about the future. God bless you, and God bless Network18.”

  • Now Reliance announces open offer to acquire Network18 group public shareholding

    Now Reliance announces open offer to acquire Network18 group public shareholding

    MUMBAI: The Reliance Industries juggernaut to acquire the Network18 group is chugging ahead after it got board approval to fund its acquisition at a cost of up to Rs 4,000 crore last evening.

     

    Investment banker JM Financial Institutional Securities Ltd has been appointed to manage the open offers to acquire the public shareholdings in the following three Network18 group companies: Network18 Media & Investments (NW18), TV18 Broadcast Ltd (TV18) and Infomedia Press Ltd. This clearly shows the urgency with which Mukesh Ambani wants the acquisition to go through.

     

    In all the three cases it says it is making the open offer on behalf of Independent Media Trust represented by its trustee Sanchar Content Pvt Ltd, together with Reliance Industries Ltd (RIL-PAC1) and Reliance Industrial Investments & Holdings Ltd (RIHL-PAC2).

     

    Both IMT’s and the PACs have offered to fork out Rs 943.70 crore to acquire the remaining 22,99,46,996 shares or 21.96 per cent of the emerging voting capital of NW18 (being the expected equity share capital as of the10th working day after the closure of the tendering period for the offer after considering all potential increase in the number of outstanding Equity Shares on account of outstanding employee stock options) from the public. The price per share of the offer: Rs 41.04.

     

    The sticker price for the TV18 acquisition is expected to be Rs 1,347.57 crore and it envisages the purchase of 44,65,10,110 Equity Shares or 26 per cent of the emerging voting capital  at a price of Rs 30.18 per share.

     

    The Infomedia acquisition is expected to have a total price tag of Rs 3.92 crore and it envisages purchase of 1,30,62,224 Equity Shares or 26 per cent of the emerging voting capital at a price of Rs 3.00 per offer Share.

     

    IMT, Reliance and the PACs have already signed share purchase agreements with Network18 Media promoter Raghav Bahl to acquire his holdings in the various companies through various other investment vehicles.

     

    The JM Financial public offer gives the details in the case of Network18 as follows:

     

    Network18 Media & Investments Ltd

     

    1) In terms of the ZOCD Investment Agreement dated February 27, 2012, IMT subscribed to an aggregate of 22,11,79,894 zero coupon optionally convertible debentures (“ZOCDs”) issued by RRB Mediasoft Private Limited (“RRBMPL”), RB Mediasoft Private Limited (“RBMPL”), RB Media Holdings Private Limited (“RBMHPL”), Watermark Infratech Private Limited (“WIPL”), Colorful Media Private Limited (“CMPL”) and Adventure Marketing Private Limited (“AMPL”). RRBMPL, RBMPL, RBMHPL, WIPL, CMPL and AMPL are together referred to as the “Holding Companies”. A part of the proceeds from the issuance of the ZOCDs aggregating Rs  2,076.34 crore was deployed by the Holding Companies to subscribe to 69,21,11,850 Equity Shares issued by NW18 on a rights basis to its then existing shareholders vide letter of offer dated August 31, 2012. The remaining proceeds from the issuance of the ZOCDs aggregating to Rs 135.46 crore was deployed by the Holding Companies to subscribe to 6,77,31,686 equity shares issued by TV18 Broadcast Limited (“TV18”) on a rights basis to its then existing shareholders vide letter of offer dated 31 August 2012. Pursuant to the aforesaid rights issuance by NW18 and TV18, the Holding Companies held and continue to hold 74,61,88,987 Equity Shares representing 71.25 per cent of the Emerging Voting Capital and 6,77,33,486 equity shares representing 3.96 per cent of the outstanding equity share capital in TV18.

     

     

    2)  In accordance with the terms of the SPA, IMT shall acquire 100 per cent of the outstanding equity shares in each of the Holding Companies from Mr.Raghav Bahl and Ms. Ritu Kapur for an aggregate consideration of  Rs 705.96 crore.

     

     

    3)  IMT shall additionally acquire 100 per cent of the outstanding equity shares in RB Holdings Private Limited (“RBHPL”) from Raghav Bahl and Ritu Kapur for an aggregate consideration of Rs 1.00 crore.

     

     

    4)  Further in accordance with the terms of the SPA, IMT shall extend loans aggregating to Rs  43.08 crore to the Holding Companies which shall in turn be deployed by the Holding Companies to repay certain of its outstanding liabilities. IMT shall also extend a loan of Rs 304.94 crore to RBHPL which shall in turn be deployed by RBHPL to repay certain of its outstanding liabilities.

     

     

    5)  The consideration for the transaction i.e. Rs 3,266.78 crore is the aggregate of the sums specified in (1) i.e. Rs 2,211.80 crore, (2) i.e. Rs 705.96 crore, (3) i.e. Rs 1.00 crore and (4) i.e Rs 348.02 crore (“Transaction Consideration”). This Transaction Consideration is for the indirect acquisition of:

     

     

    a)  74,61,88,987 Equity Shares (representing 71.25 per cent of the Emerging Voting Capital) held by the Holding Companies at a price per share of ` 41.04 amounting to Rs 3,062.36 crore; and

     

     

    b)  6,77,33,486 equity shares of TV18 (representing 3.96 per cent of TV18’s outstanding equity share capital) held by the Holding Companies at a price per share of Rs  30.18 amounting to Rs 204.42 crore

     

    In the case of TV18, the open offer specifies that:

     

    TV18 Broadcast Ltd

     

    1) The number of Equity Shares over which voting rights have been acquired is 94,47,68,548 Equity Shares being the aggregate of (a) and (b) below

     

     

    (a)  87,70,35,062 Equity Shares representing 51.07 per cent of the Emerging Voting Capital held by NW18; and

     

     

    (b)  6,77,33,486 Equity Shares representing 3.94 per cent of the Emerging Voting Capital held by the RRB Mediasoft Private Limited (“RRBMPL”), RB Mediasoft Private Limited (“RBMPL”), RB Media Holdings Private Limited (“RBMHPL”), Watermark Infratech Private Limited (“WIPL”), Colorful Media Private Limited (“CMPL”) and Adventure Marketing Private Limited (“AMPL”). RRBMPL, RBMPL, RBMHPL, WIPL, CMPL and AMPL are together referred to as the “Holding Companies”.

     

     

    2) The number of Equity Shares over which economic ownership has been acquired is 69,29,88,887 Equity Shares (“TV18 Economic Ownership Shares”) being the aggregate of (a) and (b) below

     

     

    (a) 6,77,33,486 Equity Shares held directly by the Holding Companies ; and

     

     

    (b) 62,52,55,401 Equity Shares (71.29 per cent of the number of Equity Shares held by NW18)

     

     

     

    (3)  The Offer is pursuant to an indirect acquisition by IMT of shares, voting rights and control over NW18 under the SPA.

     

     

    (4)  In terms of the ZOCD Investment Agreement dated February 27, 2012, IMT subscribed to an aggregate of 22,11,79,894 zero coupon optionally convertible debentures (“ZOCDs”) issued by the Holding Companies. A part of the proceeds from the issuance of the ZOCDs aggregating Rs 2,076.34 crore was deployed by the Holding Companies to subscribe to 69,21,11,850 Equity Shares issued by NW18 on a rights basis to its then existing shareholders vide letter of offer dated August 31, 2012. The remaining proceeds from the issuance of the ZOCDs aggregating to Rs 135.46 crore was deployed by the Holding Companies to subscribe to 6,77,31,686 equity shares issued by TV18 on a rights basis to its then existing shareholders vide letter of offer dated August 31, 2012. Pursuant to the aforesaid rights issuance by NW18 and TV18 the Holding Companies held and continue to hold 74,61,88,987 equity shares representing 71.29 per cent of the outstanding equity share capital in NW18 and 6,77,33,486 Equity Shares representing 3.94 per cent of the Emerging Voting Capital.

     

     

    (5)  In accordance with the terms of the SPA, IMT shall acquire 100 per cent of the outstanding equity shares in each of the Holding Companies from Raghav Bahl and Ritu Kapur for an aggregate consideration of Rs 705.96 crore.

     

     

    (6)  IMT shall additionally acquire 100 per cent of the outstanding equity shares in RB Holdings Private Limited (“RBHPL”) from Raghav Bahl and Ritu Kapur for an aggregate consideration of Rs 1.00 crore.

     

     

    (7)  Further in accordance with the terms of the SPA, IMT shall extend loans aggregating Rs 43.08 crore to the Holding Companies which shall in turn be deployed by the Holding Companies to repay certain of its outstanding liabilities. IMT shall also extend a loan of Rs 304.94 crore to RBHPL which shall in turn be deployed by RBHPL to repay certain of its outstanding liabilities.

     

     

    (8)  The consideration for the transaction i.e Rs 3,266.78 crore is the aggregate of the sums specified in (4) i.e Rs 2,211.80 crore, (5) i.e Rs 705.96 crore, (6) i.e Rs 1.00 crore and (7) i.e Rs 348.02 crore (“Transaction Consideration”). This Transaction Consideration is for the indirect acquisition of (a) 74,61,88,987 equity shares of NW18 (representing 71.29 per cent of NW18’s outstanding equity share capital) held by the Holding Companies at a price per share of Rs 41.04 amounting to Rs 3,062.36 crore; and (b) 6,77,33,486 Equity Shares (representing 3.94 per cent of the Emerging Voting Capital) held by the Holding Companies at a price per share of  Rs 30.18 amounting to Rs 204.42 crore Per share price of TV18 taken into account in the acquisition of NW18 equity shares (at share price of Rs 41.04 for every NW18 equity share) is  Rs 30.18. Accordingly the consideration attributable out of the Transaction Consideration for the TV18 Economic Ownership Shares (i.e 69,29,88,887 Equity Shares) at a per share price of Rs 30.18 amounts to Rs 2,091.44 crore.

     

  • Reliance Industries gets board approval to fund Network18 group acquisition

    Reliance Industries gets board approval to fund Network18 group acquisition

    MUMBAI: We predicted that the executive exodus at Network18 was a precursor to Reliance Industries Ltd (RIL) engineering an acquisition. (Read: More Network18 senior management to exit as Reliance begins to take full control) of the Raghav Bahl led Network18 Media.

     

    And it has turned out to be true. RIL, late this evening, announced to the BSE that it has got board approval to pump in Rs 4,000 crore into the Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network18 Media & Investments Ltd (NW18), including its subsidiary TV18 Broadcast Ltd (TV18) and the open offers to be made consequent to the acquisition.

     

    NW18, as is known is the owner of a premier suite of digital internet properties, ecommerce businesses, and differentiated broadcast content.

     

    IMT is expected to use the funds to acquire control over NW18 and TV18 resulting in the ownership of about 78 per cent in the former and 9 per cent in the latter and to acquire shares tendered in the open offers.

     

    Further in terms of SEBI (substantial acquisition and takeover regulations) 2011, IMT would be making an open offer to public shareholders for acquisition of NW18, TV18 and Infomedia Press Ltd equity shares. IMT would be simultaneously making a public announcement under takeover regulations. RIL would be a person acting in concert to the open offers.

     

    The acquisition will help differentiate the RIL 4G business, says the press release, by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties. The suite includes: in.com, IBNLive.com, Moneycontrol.com, firstpost.com, cricketnext.in, HomeShop18, bookmyshow.com. The broadcast channels include: Colors, CNNIBN, CNBCTV18, IBN7 and CNBC Awaaz. 

     

    “It was bound to happen,” says a media observer. “Mukesh Ambani has made a huge 4G play. He needs content to be pumped over the network to make the 4G investment pay off more, because consumers need video on 4G. By acquiring the NW18 and TV18 properties, he’s got a quick entry into the content and ecommerce space.  However, RIL, which, is very financially driven, will do well to leave the content creators alone and not try and force too much financial efficiencies onto them. If they do allow the creative to flow with some financial caution as is the practice in NW18 and TV18 group, then they could well have a robust, differentiated content business. Otherwise…”

  • Alok Agrawal steps down as Zee Media CEO

    Alok Agrawal steps down as Zee Media CEO

    MUMBAI: Zee Media CEO Alok Agrawal has decided to move on from his current role and is set to join Reliance Industries (RIL). However, he refused to comment on the new role he will be taking at RIL.

     

    Sources in the company say that the position of Zee Media CEO has been dissolved and now that all senior management will report directly to Zee News group CEO Bhaskar Das.

     

    Sharing his movement on Twitter, Agrawal said “Delighted to share my move to Team #RIL. Thank you Team @ZeeNews.” Recently, Sahara Samay group editor BV Rao also quit and joined RIL.

     

    Agrawal joined Zee News in 2012 after leaving Cheil India as its COO for south west Asia. Prior to that he was with Bates 141 and Grey Advertising.

  • AICL to transform annual reports from boring vanilla to interactive

    AICL to transform annual reports from boring vanilla to interactive

    MUMBAI: Annual Reports is just more than numbers, it’s a piece of handiwork through which a company can promote itself, its prospects to its various stakeholders.  It is no longer just a compilation of statistics.

     

    And to make them more interactive rather than just plain vanilla, AICL Communications, a full-service strategic communications consultancy, has taken upon itself to change the way one looks at the boring text running over pages and pages.

     

    A recent survey by Burson-Marsteller found that 95 per cent of chief executives in the US believe corporate reporting plays a critical role in achieving key business objectives. To bring that thought and change in India as well, AICL is assisting several Indian corporates in giving shape and character to their annual reports, paving the way for stakeholder groups to understand them better.

     

    The company has big daddies of various categories as its clients. Reliance Industries, Zee, Hindustan Unilever, Kotak Mahindra Bank, IDBI Bank, Maruti Suzuki, Tata Group, Hero MotorCorp, to name a few.

     

    AICL Communications CEO Arvind Agrawal says, “Many companies now recognise the significant role an annual report plays in providing a road map of key messages and strategic direction. The role of annual reports has been largely changed by innovations in technology that have broadened access to information. At AICL, we are partnering the best Indian brands to help them create a corporate image among the investor community that is commensurate with their business potential.”

     

    The thought is to add spunk and interactivity in addition to containing relevant information, visuals and imagery. Today, good annual reports are as essential as good advertising for any company. The best practices to create a good annual report according to Agrawal are: data visualization, use of imagery to highlight company’s scale, highlight company’s contribution to people and the planet through its CSR.

     

    “Internet too has changed the way people look at things. We believe that if one can access the annual report online then it becomes very interactive,” says Agrawal while stating the example of HUL, Zee on how such companies have created micro-sites for their annual reports.

     

     “We have immense respect for the work and effort AICL invests to make our reports an interesting read. These reports not only help us gain a leadership position in the minds of current and prospective stakeholders, but also allows us to clearly state our goals and pioneering initiatives in the space we operate in,” added Zeel global head brands Ronald Landers for the company which is in its fifth year of association with the consultancy.

     

    AICL operates in the specialised domain of corporate reporting, with services spanning annual and sustainability reports, internal communication, digital and moving image solutions.

     

    When asked if the company is looking at raising funds from the market, Agarwal pointed out that since it operates in a niche space and has a high profile clientele, the company doesn’t need funds from the market and are self-sufficient at present.

     

    The company’s quest to underscore the importance of reporting has driven it to continuously strive towards innovation in the domain. In doing so, it has built a portfolio of clients which comprise nearly 40 per cent of the BSE Sensex, 30 per cent of the Nifty 50 and three of the eight Indian Fortune 500 companies, besides multiple MNCs and PSUs.

  • Starcom MediaVest Group appoints Hanley King as chairman, SMG India

    Starcom MediaVest Group appoints Hanley King as chairman, SMG India

    MUMBAI: Starcom MediaVest Group (SMG) has roped in Hanley King as chairman, SMG India. King will report to global operations president John Sheehy and will be based in SMG’s Mumbai office.  As chairman, SMG India, King will be focused on key client relationships, new business and commercial operations for the agency. SMG India CEO Malli CR and SMG Convonix CEO Vishal Sampat will dually report to King and will continue to lead daily operations for their respective organisations. 

     

    “Hanley is a consummate professional with a proven track record of delivering results across our globally networked clients,” said Sheehy. “Our recent acquisition of Convonix and our robust digital and analytics practice prove that our operations in India are among our most future-focused.  I look to Hanley to work hand in hand with Malli and Vishal to continue to build upon our momentum in India.”

     

    King was most recently SMG Global Client Lead for APAC, based in Singapore. In this role he managed multifaceted SMG client teams for Samsung, Mars Wrigley, Kellogg’s, Novartis and Bank of America and others across the APAC region. Prior to joining SMG, King was CEE President for Universal McCann, where he was responsible for 22 markets across the Central European region with 500 plus staff and billings of close to $1 billion. Prior to this role, he was UM CEO, Czech Republic, and previous to this he spent seven years working for media independents and full service communications agencies in his native New Zealand. In his career Hanley has worked on many global accounts in Asia, Europe or New Zealand spanning FMCG, Auto, Financial, Breweries and Telcos.

     

    “India is a fascinating, fast-paced and constantly evolving market,” King said. “And that’s why it’s such an honor to be joining SMG India and working with Malli and Vishal – a team that is so relentlessly focused on the future.”

     

    SMG India is leading the industry with its robust digital and analytics practice, as well as it best-in-class consumer insights work led by its Human Experience Strategist Network. SMG India’s client list includes Dabur, Axis Bank, Aircel and Ranbaxy In 2013, PublicisGroupe acquired Convonix, which aligned with SMG India. Founded in 2003, Convonix today employs more than 400 digital marketing specialists, making it the largest digital agency in India, serving such clients domestically as well as internationally as Tata Motors, Reliance Industries, Budweiser, Taj Hotels, DBS, Mahindra Holidays, Tata Global Beverages among others.

  • Govt. to earn over Rs 61,600 crore from 2G Spectrum Auction

    Govt. to earn over Rs 61,600 crore from 2G Spectrum Auction

    NEW DELHI: The government is expected to earn about Rs 61,162 crore from the 2G spectrum auction that ended after 68 rounds of bidding over 10 days.

     

    Major telecom companies Airtel and Vodafone have bagged spectrum in the crucial 900 MHz band in important markets like Delhi, Mumbai and Kolkata.

     

    The government’s total revenue from the auction (which is provisional) is much higher than its initial estimate of about Rs 41,000 crore. The licences will be valid for a period of 20 years. The companies need to pay only a quarter to a third of the winning auction price upfront and the remainder by 2026.

     

    Telecom Secretary M F Farooqui said the government will get at least an estimated Rs 18,200 crore this fiscal, much higher than budget estimate of Rs 11,300 crore.

     

    With the government facing a huge budget deficit target for the current fiscal year ending in March amid a shortfall in tax collections and revenue receipts from divestment of stake in state companies, Finance Minister P Chidambaram will welcome the higher-than-expected revenues from the spectrum auction.

     

    Eight companies, including Bharti Airtel, Vodafone, and Reliance Industries, had applied to bid in the auction of 900 megahertz and 1800 megahertz band airwaves. The 900 megahertz band was auctioned only in three cities – Delhi, Mumbai and Kolkata.

     

    The stakes were especially high for Vodafone and Bharti which use 900 Mhz. They had to join the auction after the Supreme Court refused to extend their licences, which expire in November 2014. Idea too won spectrum in the 900 MHz band in Delhi.

     

    The Mukesh Ambani-backed Reliance Jio bagged 1800 MHz band in 14 circles out of the 22 on offer. This will help the company to not only offer data but also voice services in these regions. Reliance Jio had earlier won the rights to offer 4G broadband services across the country.

     

    In the 1800 MHz band, Airtel won in 15 circles, Vodafone in 10 and Idea in 11.

     

    Bidding for the 900 MHz band in Delhi, Mumbai and Kolkata was very aggressive, with Vodafone and Bharti Airtel forced to protect their turf. In Delhi, the winning bid was Rs 741 crore as against the reserve price of Rs 360 crore; in Mumbai, the winning bid was Rs 563 crore, while the reserve price was Rs 328 crore, and in Kolkata, the winning bid was Rs 195 crore vs a reserve price of Rs 125 crore.

     

    Bids for the 900 Mhz band run into higher sums as it is considered better quality spectrum which requires lower investment for telecom companies to set up infrastructure. In comparison, the 1800 Mhz band requires higher capital expenditure.

     

    The 2G spectrum had to be auctioned afresh after the Supreme Court ordered in 2012 the cancellation of 122 licences issued in 2008 by then Telecom Minister A Raja. The Supreme Court held that the process used by him to allot licences was “illegal” and ordered a new auction. Auctions in November 2012 and March 2013 flopped as most bidders stayed away from the sales, complaining that the floor bid prices were too high.

     

    The eight bidders applied to participate in the current auction after the government sharply cut auction reserve prices.

  • Reliance, Star India, IMG brings Indian Super League for football to India

    Reliance, Star India, IMG brings Indian Super League for football to India

    MUMBAI: Reliance Industries, Star India and IMG are set to launch the “Indian Super League”, an unrivalled football championship that will foster local talent and feature international stars with the aim of making the game one of the country’s flagship sport and India – a name to reckon with in the global arena.

     

    The league promises to revolutionise the sport from the very get-go, leveraging the strengths of all three partners who are focused on growing the game to national prominence, offer Indian football greater global exposure and eventually help India qualify for the 2026 World Cup.

     

    Reliance, India’s largest business enterprise, Star India, the nation’s biggest TV network and entertainment conglomerate, and IMG, a leader in sports management, have a storied tradition of innovation, competitiveness and institutional commitment that will propel the venture, in which the partners will have proportionate stakes.

     

    The “Indian Super League” will feature eight city specific teams to start with and will tap the burgeoning interest among the country’s young population that’s increasingly seen taking interest in the sport globally. The League will kick-off in January 2014 and will run through March 2014, with plans for a second window in the same year.

     

    Annual global revenue for football globally is estimated at USD 28 billion,according to a study by AT Kearney. Star India,which also holds telecast rights to BCCI cricket matches in India,will use its superior content creation,packaging and presentation expertise to whet and retain viewer interest.

     

    “Football, with its largely untapped potential in the country, has the opportunity to grow to an unrivalled commercial success quite unlike any other sport. We hope the growing football footprint will pave the way for the nation’s sporting renaissance”, said IMG-Reliance chairperson Nita M. Ambani.

     

    “India is hungry for its second sport. Combined with our expertise in sports production, our attempt is to bring an unparalleled football experience to our viewers”, said Star India CEO Uday Shankar. “For far too long, the Indian sports fan has quietly waited for this revolution on the cusp of which we stand today. Our objective is nothing short of creating a movement around football in India. We want to put India on the global map.”

     

    “The ‘Indian Super League’ will feature international football stars combined with good football facilities, rivalry between India’s biggest cities and the roar of a billion passionate fans,” said IMG Worldwide chairman and CEO Mike Dolan. “It envisions creating new football powerhouses in this part of the world, which will rise to global prominence as the country and the sport further develop.”

     

    The League will have world-class international players play with the best from India. Each team will have one marquee player, international players and the best of Indian talent. Given India’s burgeoning interest in football and the country’s long association with the sport, the ‘Indian Super League’ is on the threshold of launching a revolutionary new football culture in the country.

     

    The ‘Indian Super League’ will also implement various football development projects aimed at holistic development of the sport in the country, including engaging with the masses to get them excited about football, encouraging families to regularly involve their children in football, creating an infrastructure to identify talented footballers at a young age and groom them into elite professionals and creating a critical mass of highly talented coaches to work at all levels of football in India.