ITV

Tag: Venugopal Dhoot

  • Dish TV terms Videocon d2h acquisition plans speculative

    Dish TV terms Videocon d2h acquisition plans speculative

    MUMBAI: Leading Indian DTH operator, DishTV, has rubbished news reports that it was acquiring or it is in talks to acquire India’s fastest growing DTH operator Videocon d2H. It has issued a press statement and a release to the Bombay stock exchange which says: “This is in reference to the news relating to the proposed acquisition of Videocon D2H by Dish TV appearing in certain sections of media. The news is speculative in nature and as a Policy, Dish TV does not comment on market speculations and rumours.”

    An article on moneycontrol.com, owned by the Network18 group, had stated that Dish TV India was in the running to take over Videocon d2H. According to moneycontrol, the latter had put up a bid price which valued itself at around $1 billion. Dish TV’s offer price was lower, and it was trying to bring d2H’s bid down. Said the report: “The two companies are negotiating on valuations close to $ 1 billion. This is because Videocon’s ask price is currently higher than what Dish TV has offered. Nasdaq-listed Videocon d2H has a market capitalisation of of USD 855 million and has a net debt of Rs 1600 crore. The losses that the company had last fiscal year stood at Rs 92.2 crore.”

    The article had further claimed that: “Even the lenders have suggested that sale of Videocon d2H to Dish TV is likely.”

    This had been supported by other news reports which had explained that lenders – banks and financial institutions – to the Vengopal Dhoot promoted Videocon group were allegedly forcing it to offload assets as it is too heavily leveraged. The reports had stated that the much diversified group which began in electronics but today was involved in oil and gas had taken on a debt pile that it was finding difficult to service. Hence, it was exploring several options to pare its loans by finding buyers for assets like its oil and gas operations or its direct to home television businesses, the reports had claimed.

    But with DishTV pooh-poohing that it was amongst the suitors for Videocon d2H, at least speculation about one of the alleged transactions has been put to rest.

  • Dish TV terms Videocon d2h acquisition plans speculative

    Dish TV terms Videocon d2h acquisition plans speculative

    MUMBAI: Leading Indian DTH operator, DishTV, has rubbished news reports that it was acquiring or it is in talks to acquire India’s fastest growing DTH operator Videocon d2H. It has issued a press statement and a release to the Bombay stock exchange which says: “This is in reference to the news relating to the proposed acquisition of Videocon D2H by Dish TV appearing in certain sections of media. The news is speculative in nature and as a Policy, Dish TV does not comment on market speculations and rumours.”

    An article on moneycontrol.com, owned by the Network18 group, had stated that Dish TV India was in the running to take over Videocon d2H. According to moneycontrol, the latter had put up a bid price which valued itself at around $1 billion. Dish TV’s offer price was lower, and it was trying to bring d2H’s bid down. Said the report: “The two companies are negotiating on valuations close to $ 1 billion. This is because Videocon’s ask price is currently higher than what Dish TV has offered. Nasdaq-listed Videocon d2H has a market capitalisation of of USD 855 million and has a net debt of Rs 1600 crore. The losses that the company had last fiscal year stood at Rs 92.2 crore.”

    The article had further claimed that: “Even the lenders have suggested that sale of Videocon d2H to Dish TV is likely.”

    This had been supported by other news reports which had explained that lenders – banks and financial institutions – to the Vengopal Dhoot promoted Videocon group were allegedly forcing it to offload assets as it is too heavily leveraged. The reports had stated that the much diversified group which began in electronics but today was involved in oil and gas had taken on a debt pile that it was finding difficult to service. Hence, it was exploring several options to pare its loans by finding buyers for assets like its oil and gas operations or its direct to home television businesses, the reports had claimed.

    But with DishTV pooh-poohing that it was amongst the suitors for Videocon d2H, at least speculation about one of the alleged transactions has been put to rest.

  • Silver Eagle to invest in Videocon d2h for at least one third stake

    Silver Eagle to invest in Videocon d2h for at least one third stake

    BENGALURU: Silver Eagle Acquisition Corp (Silver Eagle), founded by former Metro-Goldwyn-Mayer  (MGM) chairman and chief executive Harry Sloan and veteran television executive Jeff Sagansky, has announced that it will invest between $ 300 million to $375 million in Videocon d2h for a stake of between 33.5 per cent to 38.6 per cent. Sloan and Sagansky are expected to join the Videocon d2h board when the deal closes. Silver Eagle hopes to take Videocon d2h public in the US.

    In exchange for cash, Silver Eagle will receive new equity shares of Videocon d2h initially valued at no less than $303.7 million representing no less than 33.5 per cent of the equity capital of Videocon d2h.  The shares issued by Videocon will be represented by American Depositary Shares (ADSs) which will be distributed directly to Silver Eagle’s stockholders.

    The actual amount of cash to be contributed by Silver Eagle and the number of Videocon d2h shares represented by ADSs to be issued by Videocon d2h will depend, in large part, on the number of public shares which its stockholders elect to redeem in connection with the transaction.

    The current shareholders of Videocon d2h, who are all members of the Videocon Group, will also be entitled to be issued additional equity shares of Videocon d2h following the closing representing, in aggregate, 3.88 per cent of the post-closing issued share capital of Videocon d2h, subject to the achievement of certain trading price targets over a three year period after closing.

    The investment proceeds will be used for reducing debt and expanding operations in India that will undergo the third and fourth phases of cable television digitisation in India, offering large growth opportunities say industry sources.

    Sloan said, “We created Silver Eagle for the purpose of finding a fast-growing media opportunity which is taking full advantage of the digital revolution.  With almost 10 million digital subscribers, this well-managed company has passed the inflection point to become a leader in India’s explosive television growth.”

    Sagansky said, “Videocon’s DTH business is in what we believe to be the fastest growing segment of the media industry in India in part because of the government’s ongoing mandatory digitisation plan in addition to millions of Indian homes subscribing to pay TV for the first time.  Together there is an expected 33 million new Pay-TV subscribers over the next four years and we are pleased to become part of Videocon d2h’s dynamic growth story.”

     

    Videocon Group chairman Venugopal Dhoot said, “Our DTH service already offers the highest number of channels in each of our packages and we were the first company to launch HD channels in India.  We anticipate that the transaction with Silver Eagle will not only give us additional capital to continue development of our services, but also unparalleled expertise and experience.  We look forward to working closely with Harry and Jeff on expanding our market share and services.”

    Videocon d2h started in 2009 is a member of the global conglomerate Videocon Group, which owns interests in consumer electronics, oil and gas, power, retail and insurance, among others.  Videocon d2h has grown to a subscriber base of 1.18 crore or a market share of about 16.5 per cent of India’s direct-to-home market as of last September. It distributes more than 500 digital television channels.

    The deal, when it goes through, will put the valuation of Videocon d2h at around $ 1 billion plus ($ 100 crore).

    Other acquisitions by Sloan and Sagansky include the in-flight entertainment companies Row 44 and Advanced Inflight Alliance AG through Golden Acquisition Corp.

     

  • Videocon d2h plans to launch IPO by Feb 2015

    Videocon d2h plans to launch IPO by Feb 2015

    MUMBAI: A few days ago, Videocon d2h files paper with the Securities and Exchange Board of India (SEBI) to raise Rs 700 crore through an initial public offering (IPO).
    Rs 350 crore will be used to acquire STBs, outdoor units and accessories from TEL, a Videocon Group entity and Rs 175 crore to repay debt.

     

    In a recent interview to CNBC TV18, Videocon Industries CMD Venugopal Dhoot has said that it will launch the IPO in the first quarter of 2015.

     

    “We hope to launch it in January or February maximum, market is good and Videocon d2h has been number one since beginning in customer acquisition from where it started and now it has become number one in customer acquisition,” he said adding that it is looking at doubling its subscriber base within five years. Dhoot highlighted that it currently has 9 million subscribers but will soon become a ‘super profitable company’.

     

    Dhoot also said that the average revenue per user (ARPU) of Videocon d2h was the same as Dish TV, but a little less than Tata Sky. While speaking at a session at indiantelevision.com’s IDOS 2014, Videocon d2h CEO Anil Khera had said that its ARPU in phase III and phase IV cities have touched Rs 220.

     

    This is Videocon’s second attempt at the IPO. It had got SEBI’s approval in 2012 but didn’t go ahead with it due to unfavourable market conditions. Seven banks including UBS, Axis Capital, ICICI Securities, SBI Capital Markets, Yes Bank, IDBI Capital are managing the share sale.

     

    The company is also considering a preferential issue of up to 5,000,000 equity shares, aggregating up to Rs 50 crore with certain investors.

  • FC Goa announces Virat Kohli as its new co-owner cum ambassador

    FC Goa announces Virat Kohli as its new co-owner cum ambassador

    MUMBAI: The Hero Indian Super League (ISL) franchise of Goa, FC Goa today unveiled its new co-owner, celebrity cricketer Virat Kohli. With Kohli coming on board, the team now is composed of four owners. The other three are Venugopal Dhoot of Videocon, Shrinivas Dempo and Dattaraj Salgaocar, both businessmen from Goa. Videocon d2h was named as the principal sponsor for the team.

     

    FC Goa also introduced its marquee coach, Brazilian football legend Zico and its marquee player, Robert Pires. Bollywood actor Varun Dhawan has been named as the team’s ‘first friend’.

     

    Present at the ceremony were Football Sports Development founding chairperson Nita Ambani who said that one of the main goals of the ISL was to promote the game at the grassroots levels by involving millions of kids through various programmes of the eight franchises.

     

    The Adidas team kit consisting of the jersey was also unveiled at the ceremony. Talking about the team kit Adidas India brand director, Tushar Goculdas says that the Goa team represented one of the ‘most passionate centres’ of football in India. He adds, “The team is supported by a strong backbone with owners having great footballing heritage, Virat- a world class athlete and Zico, one of the greatest artists of the beautiful game.” The team jersey will be available to FC Goa fans to purchase in a few weeks time.

     

    Speaking about his new venture, Kohli comments, “The experience of stalwarts like Zico and Pires will further strengthen the already strong DNA that the team possesses, thanks to the Salgaocar, Dempo and Videocon Groups’ involvement.”  According to sources from the team  it was Kohli  himself who approached the team owners to gain a stake in FC Goa.

     

     Videocon Industries chairman of the board Venugopal Dhoot says that the four partners shared a common dream which was to make a valuable contribution to Indian football and elevate the standards of the sport in the country.

     

    FC Goa is also the first Indian sports club to launch a satellite TV channel  called  the FC Goa TV which will be telecast on Videocon d2h with exclusive and innovative programming. The shows will also include specials such as on field programmes.  In addition to this, a special magazine dedicated to the team’s fans was also revealed.

     

    Dempo Group of Companies chairman and managing director Shrinivas Dempo while speaking to indiantelevision.com says that the ISL has come at the right time just after the FIFA World Cup fever. Speaking on the role of the four owners, he says, “We will look after the administration and management side of the game while the technical aspect and strategies of play will be looked by Zico and the players. Together we will work for the team’s overall success.”

     

    V M Salgaocar and Company managing director Dattaraj Salgaocar too agrees and says, “The Dempo group and we share decades of support towards football through our local football clubs.” In terms of sponsorship he says they are still looking at getting brands on board and are also looking at local brands for tie ups.

     

    FC Goa will kick off the first game of the Hero Indian Super League against Chennaiyin FC at home ground on 16 October. The team was launched on 26 august 2014.

  • Videocon d2h plans Rs 700 crore IPO by Diwali

    Videocon d2h plans Rs 700 crore IPO by Diwali

    MUMBAI: It has been seeking to make a public offering over the past two years, but market conditions have forced it to delay it time and again. But with the new Modi government generating a bullish sentiment in both the economy and the stock markets, the Videocon group’s direct to home operation Videocon d2h has finally decided to take the public listing route once again.

     

    Videocon Industries chairman &MD Venugopal Dhoot told a couple of business news  channels late last week that the DTH operator’s IPO is planned for sometime during Diwali this year and it has filed a fresh prospectus  with the Securities Exchange Board of India (SEBI), as the earlier one has lapsed.

     

    Dhoot pointed out to one of the business news channels that “Videocon d2h has been No1 in customer acquisition since it began. We have around 11 million subscribers today and we are wanting to take that up to 20 million. Hence we require some Rs 600 crore to Rs 700 crore which we will raise from the public to fuel expansion, growth and deliver value added services to consumers.”

     

    His view is that around 15 per cent or so of Videocon d2h’s equity might be diluted to raise the funds, though the premium for public offering has not yet been decided. He, however, expects the d2h IPO to do well, as organic demand for DTH is only going to grow with the government mandated digitisation gathering pace, especially in rural areas. 

     

    He emphasised that the DTH operator is on course to report a positive EBIDTA in Q1 2015, following planned losses over the past few years. “When you begin DTH you have losses in the beginning. But once you start generating positive EBIDTA, it continues,” he said.

     

    Dhoot also spoke highly about the first mover advantage Videocon d2h has in announcing its 4K or ultra HD service for Indian customers which it hopes to launch by Diwali too. Tata Sky, too announced last week that it will roll out its 4K transmission by early 2015.

     

    But Dhoot is confident about Videocon d2h’s success. Said he: “Our DTH quality has been very good, service is very prompt and people across India have liked it because our brand is very popular and at low cost we can distribute the same. In India and across the globe, DTH has been very successful and we are already getting a good response from the market for our IPO.”

  • Goa franchise crowd sources team name for ISL

    Goa franchise crowd sources team name for ISL

    MUMBAI: The Indian Super League, the new football league started by IMG-Reliance, Star & the All India Football Federation, is set to kick off in September 2014. The league will have eight franchisees competing with each other and will include major international players.

     

     

    The Goa franchisee of the Indian Super League is owned by a consortium of Dattaraj Salgaocar, Srinivas V Dempo and Venugopal Dhoot of Videocon.

     

     

    The Goa franchise intends to tap the potential talent and channelise the fervor and passion for football across the country, to enhance the quality and competitive level of the sport. It is a great opportunity to develop a platform for the youngsters to enhance their talent & develop into exceptional players.

     

     

    The Goa franchise has already begun engaging with the football fans across the country.  It has adopted a unique fan sourcing method asking followers of the sport across the country to suggest a name & a nickname for the Goa team.

     

     

    Goa has a long history of domestic club football and the franchise intends to undertake various programs and engagements with football fans across, to promote the franchise and football in the country. The fans are sure to be treated to high-quality football once the league commences.

  • ‘A price war will expand the DTH market’ : Anil Khera- Bharat Business Channel Ltd CEO

    ‘A price war will expand the DTH market’ : Anil Khera- Bharat Business Channel Ltd CEO

     Venugopal Dhoot sees opportunity in the direct-to-home (DTH) business as he plans to push Videocon’s Plasma, LCD and premium TV sets.

     

    As part of Dhoot’s backward integration strategy, the consumer electronics giant will also manufacture the set-top boxes (STBs) in the Aurangabad factory.

     

    Bharat Business Channel Ltd (BBCL), a separate company for the DTH venture, will have a war chest of Rs 10 billion over two years as it readies to enter a turf that will see intense price competition.

     

    DTH in India, with players like Dish TV, Tata Sky, Reliance ADAG and Bharti, will be a low ARPU (average revenue per user), high volume game.

     

    Dhoot, not new to price wars, believes that the DTH market will expand and his distribution network will provide the pipeline for him to mop up one million subscribers in the first year.

     

    Heading the DTH venture is Anil Khera , who was earlier in charge of Videocon’s Sansui and Kelvinator brands.

    In an interview with Sibabrata Das, Khera talks about BBCL’s plans to quickly penetrate the DTH market across the country.

     

    Excerpts:

    Why does Videocon want to enter into the DTH business when the market has too many players and the race for subscriber acquisition is going to be led by a huge subsidy element?
    The total number of television households is pegged at 125 million and is growing at 12-15 per cent. The DTH subscriber base, which is currently a little over six million, is expected to touch 15 million by 2010 with the entry of new players like Reliance ADAG, Bharti and us. The DTH market will expand rapidly and there will be enough space for all the players. India will become the world’s largest pay-TV market by the stretch of numbers.

    Is Videocon entering the market because it sees DTH as an integrated business model with its consumer electronics business?
    We will be pushing our plasma, LCD and premium TV sets through our DTH service. Though we will firm up our offer plans closer to the time of launch, there will be some packaging done with subscription pricing, STBs and the TV sets. In many models, we will have in-built STBs. Unlike other DTH operators, we are a TV manufacturing company and will be making the STBs ourselves.

    Will Videocon Industries have any holding in BBCL and how much is being pumped into the DTH business?
    BBCL is a new company that has been floated for this purpose by the Videocon promoters. D2H+ is the brand name under which the service will be offered. We have already budgeted an investment of Rs 10 billion in this venture over the next two years.

    Is BBCL in talks to rope in an equity partner?
    No comments at this stage.

    How many subscribers are you targeting in the first year and at what ARPUs (average revenue per user)?
    We are looking at one million subscribers. We will be a premium service and expect our ARPUs to be Rs 200 in the first year.
    ‘We will be pushing our plasma, LCD and premium TV sets through our DTH service. Unlike other DTH operators, we are a TV manufacturing company and will be making the STBs ourselves‘

    At what subscriber and ARPU level will BBCL break even?
    We expect to break even faster than expected because of our backward integration model. We will be manufacturing STBs and have strong distribution skills. The market will also expand better than expected due to competition from so many players.

    Aren’t you entering at a time when the price war will be at its height as Reliance and others launch their service?
    There will be a price war. That is when the market will also expand.

    Will Videocon manufacture STBs only for BBCL?
    Videocon has a strong manufacturing background. It will be manufacturing the STBs at its Aurangabad factory with the Korean technology. The STBs will be supplied to BBCL. Already 50,000 boxes have been manufactured.

    When will you launch and how many channels will be on offer?
    We will launch by October-end. The end-to-end instrument testing will happen in a week’s time. We will then conclude the date for friendly users test. We will start with 200 channels. We will have a range of packages available to our customers – from basic to the family and premium range. We will offer choice to the customers and will cater to the entire demographic pop strata, including the regional flavours.

    What is the differentiating content BBCL will offer to mop up subscribers?
    We are working upon many customer friendly schemes which we will announce when the commercial launch is about to happen. We are working upon few unique channels. We will also have a HD ready platform which would be bundled with the offers.

    How many Ku-band transponders have been booked and on which satellite?
    We have taken six Ku-band transponders on SingTel’s ST-1 satellite. We are using MPEG-4 compression technology and will be able to pack in more channels per transponder. Our encryption technology is from Irdeto. The uplinking centre is at Greater Noida.

    What is the call centre facility being created?
    We will be having a multi-lingual 24-hour call centre based at NOIDA/Gurgaon initially. Later we will have one each in the region of South as well as West.
    The telcos feel that they have IPTV plans and DTH will complement that growth. What is the synergy Videocon sees in the DTH business?
    We have been associated with consumer durables for over two decades and have a deep understanding of the viewing experience that a consumer seeks. We will drive penetration across the country soon.