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Tag: Zee

  • ETC share buyback programme: SEBI exempts Zee from making open offer

    ETC share buyback programme: SEBI exempts Zee from making open offer

    MUMBAI: The Securities and Exchange Board of India (SEBI) has paved the way for repurchase of shares by ETC Networks Ltd. The market regulator has granted exemption to Zee Telefilms Ltd. (ZTL) and Asian Satellite Broadcast Pvt. Ltd. from making an open offer regarding increase in their voting rights from 54.42 per cent to 58.73 per cent.

    “Pursuant to the said increase in voting rights, there would not be any change in control of the target company (ETC Networks). The application seeking exemption was forwarded by SEBI to the takeover panel. The panel recommended for exemption to the acquirers from making an open offer,” SEBI says in a release.

    ZTL and Asian Satellite Broadcast (referred to as ‘the acquirers’) are the promoters and collectively hold 54.42 per cent in ETC.

    “The repurchase of shares by ETC is aimed at increasing shareholder value. We plan to exercise the buyback programme after getting the necessary approvals,” says Essel Group CEO of corporate strategy and finance Rajiv Garg.

    ZTL and Asian Satellite Broadcast (holding company of the Group) had, on 13 June 2006, filed an application with the SEBI. “ETC Networks has announced to buy back up to 10 per cent of its total paid up equity capital and free reserves at a price not exceeding Rs 62 per share in compliance with the provisions of sections 77A and 77AA of the Companies Act 1956 and provisions of SEBI (Buy-Back of Securities) Regulations, 1998. In view of the said buy back, the holding of the acquirers would increase from 54.42 per cent to 58.73 per cent of the total paid up capital of the target company. As the shareholding of the acquirers would increase beyond 55 per cent of the issued capital of the target company, the acquirers have sought exemption from the provisions of Chapter III of the Takeover Regulations,” the letter said.

    The aim of the share repurchase programme is reduce the paid up share capital and improve earnings per share (EPS). This will be beneficial to the shareholders in the form of higher dividend pay out and increased EPS.

  • Zee, TV18, Balaji in top 500 Indian companies’ list

    Zee, TV18, Balaji in top 500 Indian companies’ list

    NEW DELHI: Only a handful of media companies like Zee Telefilms, Deccan Chronicle and Television Eighteen Ltd find a place in a survey of top 500 Indian companies conducted by Economic Times newspaper.

    With a market cap of Rs. 9.3 billion in June 2006, Zee Telefilms has been ranked 142nd in ET500 in August 2006, up from an earlier survey in February when it had been placed at 281st position.

    Incidentally, Zee tops the media heap amongst the best in India where the top two slots are occupied by infotech companies, Tata Consultancy Services and Infosys Technologies.

    Regional media powerhouse, Deccan Chronicle Holdings, finds a place at No. 167 with a market capitalization of Rs. 1.4 billion.

    Television Eighteen, owners of TV channels like CNBC TV18 and CNN IBN, has slipped to No. 330 in ranking in August from an earlier position of 318.

    According to ET500, TV18’s market cap in June stood at slightly over Rs. 1 billion.
    The other two media organizations finding place in the top 500 Indian companies are Adlabs (rank: 342) and TV and movie production house Balaji Telefilms (rank: 355).

    Balaji too slipped in ranking from No. 336 in an earlier ET500 list.

    Economic Times used several parameters, including market capitalization of a company, to compile the ET500 list.

    The eight parameters considered included absolute change in market cap over the past one year, sales, absolute change in sales over the past year, net profit, absolute change in net profit over the past year, price to earnings (P/E) multiple and return on net worth.

    The market cap of companies during the period June 16-30, 2006 has been considered, while sales and profit numbers are for 12 months ended March 2006.
    (Rs. 47=1US$)

  • Zee to strengthen 8 pm slot with ‘Banoo Main Teri Dulhann’

    Zee to strengthen 8 pm slot with ‘Banoo Main Teri Dulhann’

    MUMBAI: Zee TV is all set to beef up its programming with Banoo Main Teri Dulhann, to kick off on 14 August at 8 pm from Monday to Friday. It replaces the long running soap Tumhari Disha and hopes to gain a strong viewership in the 8-10 pm slot, as it has already acquired popularity with leadout show Jab Love Hua, as well as Kasam Se and Saat Phere in subsequent slots.

    Dulhann, also running along a women centric theme, is about an uneducated village girl Vidya waiting to be swept of her feet by a charming prince. Marriage, however, shatters her dreams as she faces the wrath of her husband and in-laws who belittle her background and education.

    The essence of the show looks at the positivity with which she hopes to rise above these trials and win over her husband. Promising to have a good twist in the story, the show hopes to grip viewers.

    Speaking to Indiantelevision.com on the strategy that has been used to pull in the viewership, Zee TV senior VP programming Ashvini Yardi said, “Based on the lines of a Cinderella story, the theme deals with a reality that most Indian women can identify with. Tumhari Disha came in at a time when Zee did not have the numbers it holds today, hence, we are hoping Dulhann will be able to achieve that.”

    The main characters are played by two fresh faces, Divyanka Tripathi (Vidya) from Bhopal and Kolkata boy Sharad Malhotra (Sagar). The two were contestants from Cine Star Ki Khoj. Nilima Bajpai from Shankuntala Films has handled the production.

    Zee TV businesss head Punit Goenka said, “With Saat Phere, we addressed the issue of the discrimination a girl faces in many parts in India on the grounds of her skin colour. Banoo Main Teri Dulhann will touch upon and deal with the struggles an illiterate village girl has to undergo. If Kasam Se and Saat Phere have struck a chord with our viewers, Banno Main Teri Dulhann will take it further.”

    As Zee TV attempts to capture the 8 pm time band, it will have to face stiff competition from Sahara’s recently launched Sati. Star Plus’ Pyaar Ke Do Naam Ek Raadha Ek Shyaam is also in this time slot but, is yet to deliver numbers. Sony has also planned to launch a new show Hum Mei Hai Visshwas to replace Kaisa Ye Pyar Hai at 8 pm.

    Now, its left to the viewer to decide whether the show will be able to achieve the stronghold it hopes to establish during the prime time slot.

  • Delhiite Irfan Alam crowned Zee’s ‘Business Baazigar’

    Delhiite Irfan Alam crowned Zee’s ‘Business Baazigar’

    MUMBAI: “Ali, your worst fears have come true. The dark horse seems to have taken away the top prize,” said Zee Telefilms chairman Subhash Chandra giving his characteristic side glance to Ali Ismail, who was till then a hot favourite for the Business Baazigar title.

    Then, moving on, he dropped the bombshell with his final declaration. “Irfan Alam from Delhi is the Business Baazigar.”

    At a colourful ceremony held at the Taj Presidency, in south Mumbai’s swank Cuffe Parade area, Zee Telefilms thus came up with the winner of the country’s first ever business reality show, Business Baazigar. After more than two hours of intense drama, the reversal of fortunes saw Irfan Alam, the wild card entrant into the finals, stealing the show. Irfan snatched the top prize from the other two finalists Puneet from Chandigarh and Ali Ismail from Mumbai in a closely fought contest marked that road an emotional rollercoaster.

    The jury, in a surprising turn of events, offered one of the Mini Baazigar winners – Irfan Alam, the opportunity to compete for the grand Business Baazigar title and win full funding for his idea. The condition for this entry was that he would forfeit his Mini Baazigar winnings of Rs 2 million. As they say, fortune favours the brave (in this case the one with the most self belief). Irfan took the chance and emerged the winner.

    The dramatic decision of the jury to name Irfan as the Business Baazigar came as a complete surprise to the audience who had voted for Puneet (47 per cent) and Ali (30 per cent) over Irfan (23 per cent).

    According to an official Zee spokesperson, Zee will provide the full funding to the business idea put forth by Irfan. Meanwhile, Puneet and Ali will be receiving partial funding. The finale episode will be telecast on 12 August at 8 pm.

    Irfan, who was earlier voted out of the show, had gone on to win a Mini Baazigar project – which Zee offered to the best ousted contestants – with his idea to systematise the working of cycle rickshaws in Delhi by bringing them under one roof, raise their standards of living and simultaneously provide the public a better, more efficient transport system. He plans to generate revenues from providing value added services and using the rickshaws as mobile advertising media. His innovative project and the confidence he displayed to score an initial victory with the project impressed the judges and got him a wild card entry into the finals.
    Speaking on the culmination of his pet project, Chandra revealed Zee’s plans to launch a second season of Business Baazigar. “We want to make the show even better in our next attempt. This time we received about 200,000 entries and in the next edition we expect about million entries. We want suggestions from all the business leaders to make the show even more vibrant in our next edition.”

    Felicitating the winners on behalf of sponsor Aditya Birla Group, Rajashree Birla pointed out that the show fitted very well with Aditya Birla Group’s vision. “Business Baazigar really went along with our social vision of reaching out to people and tapping their entrepreneurial potential,” said Birla.

    Zee TV business head Punit Goenka said, “We are glad to announce India’s first Business Baazigar, after several months of hard work undergoing gruelling tasks. Irfan has proved worthy to be Business Baazigar. This show is an exceptional one that has intense reality drama, besides the unique concept. Business Baazigar again attempts to bring life to a commendable business idea. We are glad to have Aditya Birla Group as our partners in this noble venture of supporting a deserving business idea.”

    The grand event had as its guest of honour Union minister of commerce & industry Kamal Nath. The event was attended by the who’s who from Mumbai’s business community consisting of names such as aviation minister Prafful Patel, former I&B minister Ravishankar Prasad, Vijaypath Singhania, Mukul Kasliwal, Kishore Biyani, Shashi Ruia, Naresh Goel and Ramesh Agarwal. Among the media bigwigs present were Madison Communications CMD Sam Balsara, Lodestar Universe CEO Shashi Sinha, FCB Ulka MD Anil Kapoor and Euro RSCG CEO Ishaan Raina.

  • Tata-Sky approaches TDSAT against Zee over bouquet pricing

    Tata-Sky approaches TDSAT against Zee over bouquet pricing

    MUMBAI:There seems to be no end to the thrust and parry going on over the DTH airwaves. Close on the heels of Dish TV wresting a favourable decision against Star India, Tata Sky has moved the Telecom Disputes Settlement And Appellate Tribunal (TDSAT) — against what it terms as Zee’s exhorbitatnt terms for providing its network channels to its still-in-the-pipeline DTH service.

    The petition by Tata Sky before the appellate tribunal makes Zee Turner Ltd, Zee Telefilms Ltd,Turner International India and Dish’s managing company ASC Enterprises LTD as party to the case.

    The Tata Sky petition alleges that the Zee Group has denied supply of Zee Turner bouquet of channels to the former’s yet-to-be-launched DTH service under reasonable terms.

    The petitioner has sought “to obtain appropriate direction for the signals of the channels,” alleging that respondent Zee Turner has quoted unreasonable terms for supply of its signals to Tata Sky.

    Contacted by Indiantelevision.com, a senior executive at Dish TV today refrained from commenting on the issue, saying, “We have yet not received any direction from TDSAT.”

    The disputes tribunal has given the respondents three days from the day they receive an official intimation to file its replies.The next date of hearing is 25 July 2006.

    As per regulatory norms, all content should be made available to all delivery platforms on a non-discriminatory basis.

    Last week, the tribunal had delivered a verdict laying down benchmark rate for channel prices for DTH platforms, while directing Star to make available its channels to Dish TV.

    Main respondent Zee Turner is a 74:26 distribution joint venture between Zee Telefilms and Time Warner company Turner International India.

    The cable pricing of the two Zee-Turner bouquets is Rs 83.65 plus service tax. Zee-Turner’s bouquet one comprises Zee TV, Zee Cinema, Zee Movies, Zee English, CNN, Cartoon Network, CNBC, Trendz, Reality TV, Zee Marathi, Zee Punjabi, Zee Bangla and Zee Gujarati and is priced at Rs 58.85 per subscriber/per month. The second bouquet carries HBO, Vh1, Pogo, Zee Business and Awaaz, which is available at Rs 25 per subscriber/per month.

    Tata Sky’s complaint before TDSAT is that Zee is seeking the same pricing terms for supplying its channels to its DTH service as is its cable rates.

    In what manner TDSAT responds to the Tata Sky complaint will be watched with close interest. After all, in its earlier order in favour of Dish TV, TDSAT, while directing the sector regulator to set a benchmark for channel prices for DTH services, said that Star channels should be made available to Dish TV at half the price at which they are available to cable operators.

    The tribunal’s reasoning in the earlier case was that DTH is an addressable system where loss of revenue down the value chain is negligible, if not zero.

  • Indian TV channels to show solidarity with Mumbai blast victims

    Indian TV channels to show solidarity with Mumbai blast victims

    MUMBAI: Over 30 Indian television channels will simulcast a two-minute film The Voices of India on 18 July at 6 pm and 9 pm. The aim is to show solidarity with the victims of the serial train blasts that hit Mumbai last week.

    It is for the first time that television channels like DD, Star, Zee, Sony, Times, ETV, MTV, TV 18 network, NDTV and Janmat will get together to air the film.

    The Voices of India encapsulates thoughts expressed by Prime Minister Manmohan Singh after visiting the bomb blast victims. Sachin Tendulkar, Aamir Khan, Shah Rukh Khan, Fardeen Khan, Anil Kapoor, Yash Chopra, Preity Zinta, Karan Johar and Nana Patekar also feature in the film.

    Designed as a Campaign for India, it is the citizens response to the terrorist attack on Mumbai.

  • ‘We will be a Rs 5 billion company by 2008’ : Atul Goel – E-City Ventures CEO

    ‘We will be a Rs 5 billion company by 2008’ : Atul Goel – E-City Ventures CEO

    His is a tale that is not just about multiplexes. E-City Investments and Holdings chief Atul Goel is hooking up a film exhibition, distribution and digital delivery business.

    At the centre of this game is the multiplex business. Fun Multiplex Pvt Ltd is on a massive scale up exercise, planning to ramp up from 23 screens to 150 by FY08 while acquiring 100 single screens to gain a pan-India presence.

    E-City Digital Cinemas will deliver movies to theatres via satellite as well as hard disk in a format that operates on low margins but is profitable. Being part of the Essel group, it will use the Essel Shyam facility at Noida near Delhi which is also utilised by Zee for uplinking its channels.

    Goel recently got IL&FS to invest Rs 1 billion for a 26 per cent stake in E-City Entertainment, the hived off entity that handles real estate development. His next big target: a combined turnover of Rs 5 billion by FY08.

    In conversation with Indiantelevision.com’s Sibabrata Das & Bijoy AK, Goel unveils the expansion plans he has chalked out for E-City.

    Excerpts:

    Why did you decide to hive off the multiplex and real estate businesses into separate companies?
    The best way to attract investors is to divide the two segments of business. They can enjoy their own valuations and investors. For instance, the investors in real estate may not necessarily want to take exposure in the multiplex business. We got Infrastructure Leasing & Financial Services Ltd (IL&FS) to pick up a 26 per cent stake in E-City Entertainment, which handles real estate development like setting up malls, for Rs 1 billion.

    Are you in the hunt for an investor in the multiplex business as well?
    Fun Multiplex Pvt. Ltd. still needs to scale up as we ended the last fiscal with a turnover of just Rs 450 million and a net profit of Rs 60 million. We are planning to pump in Rs 2.5 billion and have 150 screens by FY08. We have already put in Rs 300 million. We plan to raise money in a debt-equity ratio of 1.5:1. Our target in FY08 is to have a total income of Rs 2.5 billion and operating profit of Rs 720 million by FY08.

    What makes you project such a fast rate of growth in two years?
    The revenues will come mainly because of newer developments. We have 23 screens and are opening up three properties this month. We, in fact, will be adding 10 more screens by 15 August.

    Do you see revenue growth also coming from increase in ticket rates?
    Pricing power will continue to be more a movie-based strategy rather than a rate hike in tickets across the board. In case of Krrish, we increased the ticket rates. We will also see the emergence of differential pricing for off-time shows. We have, for instance, lowered the rates for early morning screenings.

    Multiplex operators are in a build up phase and Inox has even taken the acquisition route in Kolkata to enhance its pan-India presence. How are you planning to scale up your operations?
    We are also planning to take the inorganic route. We will be acquiring single screen theatres across the country. We aim to have 100 single screens by FY08. This will be in addition to the 150 multiplex screens we will have by then.
    ‘The future trend could be special alliances between distributors and multiplex operators‘

    Multiplex operators have been made to pay more for premium film content by Yash Raj Films (YRF). When YRF asked for an increase in revenue share for the Aamir Khan blockbuster Fanaa, you took a hard stance. What made you compromise later?
    Initially, all the multiplex operators protested against the hike. But the unity didn’t stay and some of them went ahead to sign the new terms with YRF. Let me reiterate here that we were in a pure business deadlock and not a confrontation of any kind.

    Has YRF, with a lineup of Hindi blockbusters like Fanaa, Krrish and Kabhie Alvida Na Kehna, started a trend where film content distributors would push for higher revenue shares from multiplex operators?
    We are not in a position where we can take a hard stance against YRF. We have a business relationship going with them and are showing Krissh. The new terms are exceptional to YRF but with such high ratios, we can only break even. The future trend could be special alliances between distributors and multiplex operators.

    Are you in any such alliance with a big distributor?
    It is too early to carve out such relationships. In fact, we urge the distributors not to start hiking rates or getting into special relationships with certain multiplexes at this stage. The industry needs to scale up the infrastructure, there is an opportunity sitting out there. We should take measures that grow rather than kill the industry at this early stage.

    Have you taken a cautious approach in the film distribution business?
    E-City Films (ECF) has distributed Hindi movies like 36 China Town in Gujarat where we control 90 theatres. The market is fragmented and will take time to consolidate. Some companies are also acquiring some movies for distribution at unrealistic prices. We are cautious and have no plans to set up a film distribution outfit overseas. For international movies, our strategy is to distribute 10-12 a year. In the past, we have distributed Alexander (December 2004), One Dollar Curry (February 2005), Million Dollar Baby (March 2005) and Sahara (July 2005). Among ECF’s recently acquired movies are Astronaut Farmer, Babel, Miss Potter and Michael Clayton.

    Have you closed down your content syndication business?
    It is in a state of lull now, but we have revival plans.

    What are the expansion plans for E-City Entertainment after IL&FS has taken a stake in it?
    We are investing Rs 1 billion each for the Kanpur and Coimbatore properties. Lucknow will attract a further funding of Rs 250 million. We have already pumped in Rs 2.17 billion in developing four projects (Rs 600 million for Andheri in Mumbai, Rs 750 million in Lucknow, Rs 550 million in Ahmedabad and Rs 270 million in Chandigarh). We will have 10-15 properties by FY08. We expect our turnover to climb from Rs 210 million to Rs 800 million by then. As these are rental incomes, E-City Entertainment will always be a profitable venture.

    How are you funding these properties?
    We will be raising fresh equity. But we have not started talking with anybody yet.

    When is E-City Digital Cinemas starting satellite delivery of movies to cinema theatres?
    We plan to launch it by the end of this month. We will be using the uplinking facility of Essel Shyam at Noida near Delhi. Currently, the hard disk is physically distributed to the 22 theatres in Gujarat (we control 90 theatres there) which we have taken on long term hire basis. We are using Real Image’s encryption technology so that piracy is safeguarded. The movie is first converted into digital master using the telecine machine, after which it can be taken on to D5 tape or captured directly on the encoding server. After encryption and compression, the movie is uplinked to the satellite via transmission server and downloaded at the playout local server which is installed at the theatre. A digital projector is used for screening of the film. E-City Digital Cinemas will target A-class towns where the current net collections are over Rs 100,000 per week.

    How many theatres will have the digital system?
    We plan to digitise 500 screens by FY08. We have already acquired 30 cinemas including a few in Mumbai. The business operates on low margins and, on a turnover of Rs 300 million last fiscal, we have reached a break even situation. As we ramp up theatre acquisitions, we expect our revenues to touch Rs 2.5 billion by FY08.

    So will E-City Holdings go for an initial public offering (IPO) or will the different entities have separate listings?
    We haven’t decided anything yet. We have no IPO plans, as of now. But by FY08 the entire venture will be a Rs 5 billion company.
  • Zee scrip gains following TDSAT verdict

    Zee scrip gains following TDSAT verdict

    MUMBAI: Sector regulator TDSAT’s direction to Star India, to make available all its channels to Dish TV, today boosted Zee Telefilms’ fortunes on the bourses.

    The Zee Tele scrip recorded a gain of 5.49 per cent on the Bombay Stock Exchange (BSE), up by Rs 13.70 to close at Rs 269.70, after hitting an intra-day high of Rs 272.15 early on.

    At the National Stock Exchange (NSE), Zee went up by Rs 14.05, to close at Rs 269.85. The prices have almost touched Zee’s 52 week high of Rs 273.9 (BSE) and Rs 274.85 (NSE). This is the highest level the scrip has reached in the last one month.

    BSE saw Zee Telefilms recording a volume trade of 1,709,876, while, at the NSE the volume traded stood at 1,978,618.

    In an order passed this morning, TDSAT, while directing the sector regulator to set a benchmark for channel prices for DTH services, said that Star channels should be available to Dish TV at half the price at which they are available to cable operators. The reason for this, according to TDSAT, is that DTH is an addressable system where loss of revenue down the value chain is negligible if not zero.

  • Eternal Dreams to foray into TV & film production; UTV’s Jain to head

    Eternal Dreams to foray into TV & film production; UTV’s Jain to head

    MUMBAI: Entertainment and event management company Eternal Dreams Pvt Ltd is making renewed efforts to get into television production after its initial experiment to turn around an ailing Marathi channel proved futile.

    Floated by ex-Sony hand Sapna Chaturvedi, the company plans to foray into Hindi film production as well. UTV non-conventional revenues general manager Bonnie Jain has rejoined the company as CEO to take up the task of finding buyers for TV content.

    In 2002, Eternal Dreams had found captive content for its production activities since it took up the management of Rathikant Basu-promoted Tara Marathi. But the channel had to shut operations due to losses.

    The company will now be looking at producing shows for the likes of Star, Zee and Sony in the Hindi general entertainment space and will also be looking at tapping opportunities with Doordarshan.

    Eternal Dreams managing director Sapna Chaturvedi said, “We are in talks with people in the industry for our venture but is too premature to talk to about it at present.”

    Jain was with Eternal Dreams till 2004, post which he joined UTV as channel director – television content. Later, Jain was made general manager of non-conventional revenues at UTV.

    He began his career with the Children’s Film Society of India (CFSI), and has also worked with Amitabh Bachchan’s ABCL, the K Balachander promoted Cuecom Entertainment Pvt Ltd and Kerry Packer’s Channel Nine India.

  • Zee’s Q1 net shows a marginal rise of 5%

    Zee’s Q1 net shows a marginal rise of 5%

    Zee Telefilms along with its subsidiaries has registered what could be its lowest Q1 net profit in the recent past. The company showed a rise of a meagre 5% in its net profit for the first quarter of the year 2000-2001. The consolidated net profit for the current quarter is Rs 32 crore as against the corresponding figure of Rs 30.5 crore for the same period of the last year.

    Various reasons can be stated for this poor performance. To begin with, the unaudited results of the company reveal that a large amount has been written off for the total operating profit of 50 crore. Zee has hived off Rs 18.3 crore as “exceptional items”. Of these exceptional items, Rs 9.8 crore has been written-off on account of the film library sold by ZTL to its subsidiary. It can be mentioned that a lot of controversy was generated when this sale was shown by ZTL as a profit in its books in the previous financial year. And according to analysts, it is likely that the remaining amount from the sale of the library might be written-off over a period of time, which in turn might mean that Zee might show lower net profits for the remaining quarters as well.

    Also the company has accrued losses on account of its new interactive services like E-Connect and Zee Interactive Learning Systems. Zee has registered losses of 5.2 crore and 1.4 crore respectively on the two new subsidiaries.

    Interestingly, the company has shown other income as Rs 10.9 crore. This is a five times increase from the previous years figure of Rs 2 crore. Had it not been for this income, the consolidated net profit would have been even lower.