Indian Media Market Report

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Indian media
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Indian media market
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Third edition: March 2007
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Indian media market
Table of contents
I) CURRENT TRENDS ............................................................................................................................................................. 13

II) INVESTMENT THESIS ........................................................................................................................................................ 18
A. INVESTMENT CASE ...................................................................................................................................................... 19
B. GROWTH FORECAST (2007 – 2012) ........................................................................................................................... 23
C. ANALYSIS OF INVESTMENT ACTIVITY ........................................................................................................................... 30
III) MEDIA MARKET OVERVIEW ............................................................................................................................................ 39
A. OVERVIEW ................................................................................................................................................................. 40
B. MARKET SIZE AND STRUCTURE ................................................................................................................................... 41
C. MEDIA PENETRATION AND USAGE ............................................................................................................................... 44
D. ADVERTISING SPEND .................................................................................................................................................. 46
E. MAJOR PLAYERS ........................................................................................................................................................ 50
F. REGULATORY ENVIRONMENT ...................................................................................................................................... 52
G. INTERNET PENETRATION AND USAGE .......................................................................................................................... 54
H. TELECOMS ENVIRONMENT .......................................................................................................................................... 56
IV) COUNTRY PROFILE .......................................................................................................................................................... 62
A. OVERVIEW ................................................................................................................................................................. 63
B. ECONOMIC PROFILE.................................................................................................................................................... 65
C. DEMOGRAPHIC PROFILE ............................................................................................................................................. 69
V) SECTOR PROFILES ........................................................................................................................................................... 73
A. TELEVISION ................................................................................................................................................................ 74
B. NEWSPAPERS............................................................................................................................................................. 83
C. RADIO ........................................................................................................................................................................ 88
D. CONSUMER MAGAZINES .............................................................................................................................................. 94
E. BUSINESS, SCIENTIFIC AND ACADEMIC MEDIA ............................................................................................................. 96
F. OUTDOOR ADVERTISING ............................................................................................................................................. 99
G. FILMED ENTERTAINMENT .......................................................................................................................................... 101
H. MUSIC ...................................................................................................................................................................... 104
I. CLASSIFIED DIRECTORIES ......................................................................................................................................... 105
J. ONLINE MEDIA .......................................................................................................................................................... 107
K. MARKETING SERVICES .............................................................................................................................................. 111
VI) COMPANY PROFILES ..................................................................................................................................................... 113
A. ADLABS FILMS .......................................................................................................................................................... 114
B. ANAND BAZAAR PATRIKA .......................................................................................................................................... 118
C. BALAJI TELEFILMS .................................................................................................................................................... 120
D. BUSINESS STANDARD ............................................................................................................................................... 124
E. CYBERMEDIA ........................................................................................................................................................... 126
F. DAINIK BHASKAR ...................................................................................................................................................... 131
G. DECCAN CHRONICLE ................................................................................................................................................ 132
H. DISH TV INDIA .......................................................................................................................................................... 136
I. EENADU GROUP ....................................................................................................................................................... 137

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J. ENTERTAINMENT NETWORK ..................................................................................................................................... 139

K. ETC NETWORKS ...................................................................................................................................................... 144
L. HATHWAY CABLE ...................................................................................................................................................... 147
M. HT MEDIA ................................................................................................................................................................ 150
N. INDIA TODAY GROUP................................................................................................................................................. 155
O. INDIACOM ................................................................................................................................................................. 158
P. INFOMEDIA INDIA ...................................................................................................................................................... 160
Q. INDIAN EXPRESS GROUP .......................................................................................................................................... 164
R. INNETWORK ENTERTAINMENT .................................................................................................................................. 168
S. INFO EDGE ............................................................................................................................................................... 170
T. INOX LEISURE ........................................................................................................................................................... 173
U. JAGRAN PRAKASHAN ................................................................................................................................................ 176
V. JASUBHAI GROUP ..................................................................................................................................................... 180
W. K SERA SERA PRODUCTIONS ................................................................................................................................... 182
X. MALAYALA MANORAMA ............................................................................................................................................. 186
Y. MID-DAY MULTIMEDIA ............................................................................................................................................... 188
Z. MUKTA ARTS ............................................................................................................................................................ 193
AA. NDTV ...................................................................................................................................................................... 196
BB. NIMBUS COMMUNICATIONS ....................................................................................................................................... 200
CC. PADMALAYA TELEFILMS ...................................................................................................................................... 202
DD. PRASAR BHARTI.................................................................................................................................................. 205
EE. PRITISH NANDY COMMUNICATIONS ........................................................................................................................... 208
FF. PVR LIMITED............................................................................................................................................................ 211
GG. SAHARA ONE MEDIA & ENTERTAINMENT ............................................................................................................. 216
HH. SANDESH ............................................................................................................................................................ 220
II. SAREGAMA ............................................................................................................................................................... 223
JJ. SHRINGAR CINEMAS ................................................................................................................................................. 227
KK. SONY ENTERTAINMENT TELEVISION ......................................................................................................................... 229
LL. STAR TV (NEWS CORPORATION) .............................................................................................................................. 231
MM. SUN TV .............................................................................................................................................................. 234
NN. TATA SKY ........................................................................................................................................................... 239
OO. TEJ BANDHU GROUP........................................................................................................................................... 240
PP. TV TODAY ................................................................................................................................................................ 241
QQ. TELEVISION EIGHTEEN ........................................................................................................................................ 244
RR. UTV SOFTWARE COMMUNICATIONS.................................................................................................................... 248
SS. WIRE AND WIRELESS INDIA ...................................................................................................................................... 253
TT. ZEE ENTERTAINMENT ............................................................................................................................................... 254
UU. ZEE NEWS .......................................................................................................................................................... 257
290307

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Table of figures
Figure 1) Sector drivers for the Indian media market........................................................................................................ 19

Figure 2) Performance of the Indian stock market ............................................................................................................ 20
Figure 3) Growth in international trade .............................................................................................................................. 21
Figure 4) Trend in Indian Rupee:US$ exchange rate ....................................................................................................... 21
Figure 5) Adspend analysis for key emerging economies ................................................................................................ 22
Figure 6) Indian media market, growth forecast (2007 – 2012) ........................................................................................ 23
Figure 7) Indian media market, chart (2007 – 2012) ......................................................................................................... 23
Figure 8) Indian adspend, growth forecast (2007 – 2012) ................................................................................................ 24
Figure 9) Indian television, growth forecast (2007 – 2012) ............................................................................................... 24
Figure 10) Indian newspapers, growth forecast (2007 – 2012)..................................................................................... 25
Figure 11) Indian consumer magazines, growth forecast (2007 – 2012) ..................................................................... 25
Figure 12) Indian online media, growth forecast (2007 – 2012).................................................................................... 25
Figure 13) Indian other media, growth forecast (2007 – 2012) ..................................................................................... 26
Figure 14) Indian business media, growth forecast (2007 – 2012) ............................................................................... 26
Figure 15) Indian film and music market, growth forecast (2007 – 2012)..................................................................... 27
Figure 16) Sector positives and risks matrix .................................................................................................................. 28
Figure 17) Adspend growth drivers ................................................................................................................................ 29
Figure 18) Recent private equity investments................................................................................................................ 30
Figure 19) Recent IPOs .................................................................................................................................................. 31
Figure 20) Major acquisitions and investments by media companies........................................................................... 32
Figure 21) Major acquisitions and investments by financial investors .......................................................................... 36
Figure 22) Development of the Indian media market .................................................................................................... 40
Figure 23) Indian media market, revenues .................................................................................................................... 41
Figure 24) Share of revenues by type ............................................................................................................................ 41
Figure 25) Reach of various media ................................................................................................................................ 44
Figure 26) Indian Adspend ............................................................................................................................................. 46
Figure 27) % Adspend by media type ............................................................................................................................ 46
Figure 28) % growth in adspend (1994 - 2008) ............................................................................................................. 47
Figure 29) Adspend, CAGR historic growth ................................................................................................................... 47
Figure 30) Adspend – leading categories of advertisers ............................................................................................... 48
Figure 31) Adspend – leading advertisers ..................................................................................................................... 48
Figure 32) Adspend growth prospects ........................................................................................................................... 49
Figure 33) Major players by sector ................................................................................................................................. 50
Figure 34) Foreign investment rules in media................................................................................................................ 53
Figure 35) Number of active Internet users ................................................................................................................... 54
Figure 36) Internet subscribers....................................................................................................................................... 54
Figure 37) Internet subscription pricing .......................................................................................................................... 55
Figure 38) Key statistics, telecoms market .................................................................................................................... 57
Figure 39) Major fixed line telecoms operators .............................................................................................................. 57
Figure 40) Market shares of GSM operators ................................................................................................................. 58

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Figure 41) Growth in number of mobile subscribers...................................................................................................... 58

Figure 42) Major mobile telecoms operators ................................................................................................................. 60
Figure 43) Major PCO operators .................................................................................................................................... 61
Figure 44) Key statistics on the BRIC economies ......................................................................................................... 63
Figure 45) Map of India, Major cities .............................................................................................................................. 64
Figure 46) Map of India, States by language ................................................................................................................. 64
Figure 47) Key macro-economic indicators ................................................................................................................... 65
Figure 48) Foreign direct investment by sector (1991-2004) ........................................................................................ 66
Figure 49) Population analysis ....................................................................................................................................... 67
Figure 50) Labour force statistics ................................................................................................................................... 67
Figure 51) Labour force by sector (2001)....................................................................................................................... 67
Figure 52) Regional GDP per capita and population analysis ...................................................................................... 68
Figure 53) Adult population by economic status ............................................................................................................ 69
Figure 54) Population by primary language ................................................................................................................... 70
Figure 55) Population and literacy levels for major states............................................................................................. 70
Figure 56) Number of major cities by population (2001) ............................................................................................... 71
Figure 57) Major urban centres of population ................................................................................................................ 71
Figure 58) Forecast growth in key consumer categories .............................................................................................. 72
Figure 59) Television market statistics ........................................................................................................................... 74
Figure 60) Television market revenues .......................................................................................................................... 74
Figure 61) Major broadcasters ....................................................................................................................................... 75
Figure 62) Television market structure by channel type ................................................................................................ 75
Figure 63) GRPs of major commercial broadcasters .................................................................................................... 76
Figure 64) Audience shares for leading regional channels ........................................................................................... 77
Figure 65) Audience shares for news channels ............................................................................................................. 78
Figure 66) Structure of cable market .............................................................................................................................. 79
Figure 67) Major cable operators ................................................................................................................................... 80
Figure 68) DTH platforms ............................................................................................................................................... 81
Figure 69) Key foreign direct investment rules .............................................................................................................. 81
Figure 70) Key foreign investments in television ........................................................................................................... 82
Figure 71) Estimated newspaper adspend .................................................................................................................... 83
Figure 72) Newspaper adspend by type (2006) ............................................................................................................ 84
Figure 73) Weekly reach of newspapers........................................................................................................................ 84
Figure 74) Circulation growth (1996 – 2005) ................................................................................................................. 86
Figure 75) Readership of leading newspapers .............................................................................................................. 86
Figure 76) Market shares by newspaper language ....................................................................................................... 87
Figure 77) Key foreign investments in newspapers ....................................................................................................... 87
Figure 78) Phase II licencees ......................................................................................................................................... 89
Figure 79) Twenty largest licence bids (Phase II).......................................................................................................... 90
Figure 80) Radio reach, Mumbai (Wave 2, 2006).......................................................................................................... 91
Figure 81) Radio reach, Delhi (Wave 2, 2006) .............................................................................................................. 92
Figure 82) Radio reach, Kolkata (Wave 2, 2006) .......................................................................................................... 92
Figure 83) Key investments in radio ............................................................................................................................... 93

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Figure 84) Readership of leading consumer magazines ............................................................................................... 94

Figure 85) Key foreign investments in consumer magazines ....................................................................................... 95
Figure 86) Recent foreign magazine launches .............................................................................................................. 95
Figure 87) Business magazines published by domestic publishers.............................................................................. 97
Figure 88) India strategies of leading business and professional publishers ............................................................... 98
Figure 89) Key foreign investments in business publishing .......................................................................................... 98
Figure 90) Key foreign investments in outdoor advertising ......................................................................................... 100
Figure 91) Key statistics on Indian filmed entertainment ............................................................................................. 101
Figure 92) Key statistics on Indian filmed entertainment ............................................................................................. 102
Figure 93) Investments by Holllywood studios............................................................................................................. 103
Figure 94) Online media advertising revenues ............................................................................................................ 107
Figure 95) Online media revenues by type (2006) ...................................................................................................... 108
Figure 96) Growth in Internet penetration .................................................................................................................... 108
Figure 97) Major domestic players ............................................................................................................................... 109
Figure 98) Foreign entrants .......................................................................................................................................... 109
Figure 99) Key foreign investments in the Internet sector ........................................................................................... 110
Figure 100) Leading Indian advertising agencies .......................................................................................................... 111
Figure 101) Recent foreign investments in marketing services .................................................................................... 112
Figure 102) Adlabs Films, summary financials .............................................................................................................. 114
Figure 103) Adlabs Films, key shareholdings ................................................................................................................ 116
Figure 104) Adlabs Films, key management and directors ........................................................................................... 116
Figure 105) Adlabs Films, financials .............................................................................................................................. 117
Figure 106) Adlabs Films, Segment analysis ................................................................................................................. 117
Figure 107) ABP, key publications ................................................................................................................................. 118
Figure 108) ABP, key management and directors ......................................................................................................... 119
Figure 109) Balaji Telefilms, summary financials .......................................................................................................... 120
Figure 110) Balaji Telefilms, key shareholdings ............................................................................................................ 121
Figure 111) Balaji Telefilms, key management .............................................................................................................. 122
Figure 112) Balaji Telefilms, financials ........................................................................................................................... 123
Figure 113) Business Standard, summary financials .................................................................................................... 124
Figure 114) Business Standard, key shareholders ....................................................................................................... 125
Figure 115) Business Standard, key management and directors ................................................................................. 125
Figure 116) Cybermedia, summary financials ............................................................................................................... 126
Figure 117) Cybermedia, key magazine titles ................................................................................................................ 127
Figure 118) Cybermedia, financials ................................................................................................................................ 129
Figure 119) Cybermedia, segment analysis .................................................................................................................. 129
Figure 120) Cybermedia, largest shareholders.............................................................................................................. 130
Figure 121) Cybermedia, key management................................................................................................................... 130
Figure 122) Dainik Bhaskar, key management .............................................................................................................. 131
Figure 123) Deccan Chronicle, summary financials ...................................................................................................... 132
Figure 124) Deccan Chronicle, financials ...................................................................................................................... 134
Figure 125) Deccan Chronicle, Key acquisitions ........................................................................................................... 134
Figure 126) Deccan Chronicle, key management and directors ................................................................................... 135

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Figure 127) Deccan Chronicle, key shareholdings ........................................................................................................ 135

Figure 128) Dish TV, summary financials ...................................................................................................................... 136
Figure 129) Eenadu group, periodicals .......................................................................................................................... 137
Figure 130) Eenadu group, key management ............................................................................................................... 138
Figure 131) Entertainment Network, summary financials .............................................................................................. 139
Figure 132) Entertainment Network, radio stations ....................................................................................................... 140
Figure 133) Entertainment Network, Outdoor advertising space .................................................................................. 141
Figure 134) Entertainment Network, financials .............................................................................................................. 142
Figure 135) Entertainment Network, segment analysis ................................................................................................. 142
Figure 136) Entertainment Network, key transactions ................................................................................................... 142
Figure 137) Entertainment Network, key management and directors........................................................................... 143
Figure 138) Entertainment Network, key shareholdings................................................................................................ 143
Figure 139) ETC Networks, summary financials............................................................................................................ 144
Figure 140) ETC Networks, channels ............................................................................................................................ 145
Figure 141) ETC Networks, financials ............................................................................................................................ 145
Figure 142) ETC Networks, key management and directors ........................................................................................ 146
Figure 143) ETC Networks, key shareholdings ............................................................................................................. 146
Figure 144) Hathway cable, summary financials ........................................................................................................... 147
Figure 145) Hathway cable, channels ............................................................................................................................ 148
Figure 146) Hathway cable, key management and directors ........................................................................................ 149
Figure 147) Hathway cable, largest shareholders ......................................................................................................... 149
Figure 148) HT Media, summary financials ................................................................................................................... 150
Figure 149) HT Media, Newspaper readership .............................................................................................................. 152
Figure 150) HT Media, Periodicals ................................................................................................................................. 152
Figure 151) HT Media, financials.................................................................................................................................... 153
Figure 152) HT Media, segment analysis ...................................................................................................................... 153
Figure 153) HT Media, key management and directors ................................................................................................ 154
Figure 154) HT Media, key shareholdings ..................................................................................................................... 154
Figure 155) Living Media. summary financials ............................................................................................................... 155
Figure 156) India Today, key magazine titles ................................................................................................................ 156
Figure 157) India Today, financials ................................................................................................................................ 157
Figure 158) India Today, key transactions ..................................................................................................................... 157
Figure 159) India Today, key management ................................................................................................................... 157
Figure 160) Indiacom, key management and directors ................................................................................................. 159
Figure 161) Infomedia India, summary financials .......................................................................................................... 160
Figure 162) Infomedia India, key directory-related products ......................................................................................... 161
Figure 163) Infomedia India, business publications....................................................................................................... 162
Figure 164) Infomedia India, special interest publications ............................................................................................ 162
Figure 165) Infomedia India, financials .......................................................................................................................... 163
Figure 166) Infomedia India, key management and directors ....................................................................................... 163
Figure 167) Infomedia India, key shareholdings ............................................................................................................ 163
Figure 168) Indian Express Group, summary financials................................................................................................ 164
Figure 169) Indian Express Group, newspapers ........................................................................................................... 165

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Figure 170) Indian Express Group, periodicals.............................................................................................................. 165

Figure 171) Indian Express Group, websites ................................................................................................................. 166
Figure 172) Indian Express Group, financials ................................................................................................................ 166
Figure 173) Indian Express Group, key management and directors ............................................................................ 167
Figure 174) InNetwork Entertainment, summary financials ........................................................................................... 168
Figure 175) InNetwork Entertainment, key management and directors ....................................................................... 169
Figure 176) InNetwork Entertainment, key shareholdings ............................................................................................ 169
Figure 177) Info Edge, summary financials.................................................................................................................... 170
Figure 178) Info Edge, websites ..................................................................................................................................... 171
Figure 179) Info Edge, financials .................................................................................................................................... 171
Figure 180) Info Edge, key management ....................................................................................................................... 172
Figure 181) Info Edge, key shareholdings ..................................................................................................................... 172
Figure 182) Inox Leisure, summary financials ............................................................................................................... 173
Figure 183) Inox Leisure, multplexes ............................................................................................................................. 174
Figure 184) Inox Leisure, key management .................................................................................................................. 174
Figure 185) Jagran Prakashan, summary financials ..................................................................................................... 176
Figure 186) Jagran Prakashan, Periodicals ................................................................................................................... 177
Figure 187) Jagran Prakashan, financials...................................................................................................................... 178
Figure 188) Jagran Prakashan, segment analysis ........................................................................................................ 178
Figure 189) Jagran Prakashan, key management and directors .................................................................................. 179
Figure 190) Jagran Prakashan, key shareholdings ....................................................................................................... 179
Figure 191) Jasubhai Group, business magazines ....................................................................................................... 180
Figure 192) Jasubhai Group, key management and directors ...................................................................................... 181
Figure 193) K Sera Sera, summary financials ............................................................................................................... 182
Figure 194) K Sera Sera, financials ............................................................................................................................... 184
Figure 195) K Sera Sera, segment analysis .................................................................................................................. 184
Figure 196) K Sera Sera, key management .................................................................................................................. 185
Figure 197) K Sera Sera, key shareholdings ................................................................................................................. 185
Figure 198) Malayala Manorama, summary financials .................................................................................................. 186
Figure 199) Malayala Manorama, Key publications....................................................................................................... 187
Figure 200) Malayala Manorama, key management and directors ............................................................................... 187
Figure 201) Mid-day Multimedia, summary financials ................................................................................................... 188
Figure 202) Mid-day Multimedia, titles ........................................................................................................................... 189
Figure 203) Mid-day Multimedia, financials.................................................................................................................... 190
Figure 204) Mid-day Multimedia, segment analysis ...................................................................................................... 190
Figure 205) Mid-day Multimedia , key transactions ....................................................................................................... 191
Figure 206) Mid-day Multimedia, key management and directors ................................................................................ 192
Figure 207) Mid-day Multimedia, largest shareholders ................................................................................................. 192
Figure 208) Mukta Arts, summary financials .................................................................................................................. 193
Figure 209) Mukta Arts, financials .................................................................................................................................. 194
Figure 210) Mukta Arts, key transactions ....................................................................................................................... 195
Figure 211) Mukta Arts, key management ..................................................................................................................... 195
Figure 212) NDTV, summary financials ......................................................................................................................... 196

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Figure 213) NDTV, channels .......................................................................................................................................... 197

Figure 214) NDTV, financials.......................................................................................................................................... 198
Figure 215) NDTV , key transactions ............................................................................................................................. 198
Figure 216) NDTV, key management and directors ...................................................................................................... 199
Figure 217) NDTV, key shareholdings ........................................................................................................................... 199
Figure 218) Nimbus Communications, key management ............................................................................................. 201
Figure 219) Padmalaya Telefilms. summary financials ................................................................................................. 202
Figure 220) Padmalaya Telefilms, key management and directors .............................................................................. 204
Figure 221) Padmalaya Telefilms, key shareholdings ................................................................................................... 204
Figure 222) Prasar Bharti, summary financials .............................................................................................................. 205
Figure 223) Doordarshan, main channels ...................................................................................................................... 206
Figure 224) All India Radio, channels ............................................................................................................................ 206
Figure 225) Prasar Bharti, financials .............................................................................................................................. 207
Figure 226) Prasar Bharti, key management and directors........................................................................................... 207
Figure 227) Pritish Nandy Communications, summary financials ................................................................................. 208
Figure 228) Pritish Nandy Communications, financials ................................................................................................. 209
Figure 229) Pritish Nandy Communications, key management .................................................................................... 210
Figure 230) PVR Limited, summary financials ............................................................................................................... 211
Figure 231) PVR Limited, multiplexes ............................................................................................................................ 213
Figure 232) PVR Limited, financials ............................................................................................................................... 214
Figure 233) PVR Limited, segment analysis .................................................................................................................. 214
Figure 234) PVR Limited , key transactions ................................................................................................................... 215
Figure 235) PVR Limited, key management and directors............................................................................................ 215
Figure 236) PVR Limited, key shareholdings ................................................................................................................. 215
Figure 237) Sahara One Media & Entertainment, summary financials ......................................................................... 216
Figure 238) Sahara One Media & Entertainment, channels.......................................................................................... 217
Figure 239) Sahara One Media & Entertainment, publications ..................................................................................... 218
Figure 240) Sahara One Media & Entertainment, financials ......................................................................................... 218
Figure 241) Sahara One Media & Entertainment, segment analysis ............................................................................ 219
Figure 242) Sahara One Media & Entertainment, key management ............................................................................ 219
Figure 243) Sahara One Media & Entertainment, key shareholdings........................................................................... 219
Figure 244) Sandesh, summary financials ..................................................................................................................... 220
Figure 245) Sandesh, periodicals ................................................................................................................................... 221
Figure 246) Sandesh, financials ..................................................................................................................................... 221
Figure 247) Sandesh, key management and directors.................................................................................................. 222
Figure 248) Saregama, summary financials .................................................................................................................. 223
Figure 249) Saregama, financials................................................................................................................................... 225
Figure 250) Saregama, segment analysis ..................................................................................................................... 225
Figure 251) Saregama , key transactions ...................................................................................................................... 225
Figure 252) Saregama, key management and directors ............................................................................................... 226
Figure 253) Saregama, key shareholdings .................................................................................................................... 226
Figure 254) Shringar Cinemas, summary financials ...................................................................................................... 227
Figure 255) Shringar Cinemas, Current multiplexes...................................................................................................... 228

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Figure 256) Shringar Cinemas, key management and directors................................................................................... 228

Figure 257) Shringar Cinemas, key shareholdings........................................................................................................ 228
Figure 258) Sony Entertainment Television, television channels.................................................................................. 229
Figure 259) Sony Entertainment Television, key management .................................................................................... 230
Figure 260) Sony Entertainment Television, key shareholdings ................................................................................... 230
Figure 261) Star TV, television channels ....................................................................................................................... 232
Figure 262) Sun TV, summary financials ....................................................................................................................... 234
Figure 263) Sun TV, television channels ....................................................................................................................... 235
Figure 264) Sun TV, radio stations ................................................................................................................................. 236
Figure 265) Sun TV, financials ....................................................................................................................................... 237
Figure 266) Sun TV, segment analysis .......................................................................................................................... 237
Figure 267) Sun TV, key management and directors .................................................................................................... 238
Figure 268) Sun TV, key shareholdings ......................................................................................................................... 238
Figure 269) Tata Sky, key management and directors.................................................................................................. 239
Figure 270) Tata Sky, Shareholders .............................................................................................................................. 239
Figure 271) Tej Bandhu Group, activities ....................................................................................................................... 240
Figure 272) Tej Bandhu Group, key management and directors .................................................................................. 240
Figure 273) TV Today, summary financials .................................................................................................................. 241
Figure 274) TV Today, channels .................................................................................................................................... 242
Figure 275) TV Today , financials................................................................................................................................... 243
Figure 276) TV Today, key management....................................................................................................................... 243
Figure 277) TV Today, key shareholdings ..................................................................................................................... 243
Figure 278) Television Eighteen, summary financials ................................................................................................... 244
Figure 279) Television Eighteen, channels .................................................................................................................... 245
Figure 280) Television Eighteen, digital media .............................................................................................................. 246
Figure 281) Television Eighteen, financials ................................................................................................................... 246
Figure 282) Television Eighteen, key transactions ........................................................................................................ 247
Figure 283) Television Eighteen, key management ...................................................................................................... 247
Figure 284) UTV, summary financials ............................................................................................................................ 248
Figure 285) UTV, financials ............................................................................................................................................ 250
Figure 286) UTV, segment analysis ............................................................................................................................... 250
Figure 287) UTV , key transactions ................................................................................................................................ 251
Figure 288) UTV, key management ............................................................................................................................... 252
Figure 289) UTV, largest shareholders .......................................................................................................................... 252
Figure 290) Wire and Wireless India, summary financials ............................................................................................ 253
Figure 291) Zee Telefilms Group, structure ................................................................................................................... 254
Figure 292) Zee Entertainment, channels ...................................................................................................................... 255
Figure 293) Zee Entertainment, overseas reach ........................................................................................................... 256
Figure 294) Zee Entertainment, summary financials ..................................................................................................... 256
Figure 295) Zee Entertainment, key management and directors .................................................................................. 256
Figure 296) Zee News, channels.................................................................................................................................... 257
Figure 297) Zee News, summary financials ................................................................................................................... 258
Figure 298) Zee News, key management ...................................................................................................................... 258

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I) CURRENT TRENDS

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Five trends for 2007
Competition in the Pay TV market

Competition for subscribers between cable and DTH and also amongst DTH operators is
increasing. 2007 may see the launch of two new DTH services (from Reliance and Sun TV),
bringing the total to four. The battle is largely being fought on the basis of price and not on
content.
Major listed companies: Dish TV Sun TV
Hathway cable Wire & Wireless India
Rollout of new multiplexes

The boom in new multiplex construction is being slowed down by delays in the construction of
new shopping malls and other regulatory issues. However, the planned build of almost 600 new
screens across 44 cities (over the next 3 years) may lead to overcapacity in some areas –
occupancy rates have already fallen from 50% to approximately 35%.
Major listed companies: Adlabs Inox Leisure
PVR Shringar
Newspaper market – new launches

The year began with the launch of HT Media’s new business daily, Mint. This title has entered
an already crowded business newspaper market. Across the sector, double digit growth in
adspend is encouraging publishers to launch new titles and expand geographically. This is
leading to very significant price competition in major cities (especially among English language
titles). Local language titles continue to have the best growth prospects.
Major listed companies: HT Media Deccan Chronicle
Jagran Prakashan
Expansion in radio
The successful licencing of over 240 new radio stations in 2006 has led to an enormous
increase in the number of stations coming on air. In 2007, the sector is likely to see increased
competition for audiences, but will also capture a greater share of advertising budgets. There is
also likely to be some consolidation in the sector and more foreign investment.
Major listed companies: Adlabs Sun TV
Entertainment Network
Internet growth
The online media sector should continue to experience strong growth in both reach and
revenues. Broadband’s share of the market will grow from its current 20%.
Major listed companies: Info Edge

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Sector-specific factors
Sector Sector positives Sector risks
Free to air Increase in TV penetration driving Channels may lose audiences to

television growth in adspend premium content Pay TV channels
Pay TV DTH and rollout of conditional access in Significant price competition could lead
cable leading to substantial growth in to heavy losses for industry, especially
subscription revenues the weaker players
Broadcast content Increased demand for quality content Few risks due to strong demand for
from channel operators content from all broadcasters
Filmed Growth in multiplexes (higher ticket Cinemas: There is the possibility of a

entertainment prices and greater transparency) and shakeout due to ‘over capacity’
overseas revenues
Increased revenues from Pay TV

operators for film rights
Music Non-film music will exhibit strong growth Piracy a significant issue with both
analogue and digital music
Digital music presents many new
revenue streams
Internet Strong growth in reach, usage and Growth in Broadband roll-out is quite
revenues slow and may hold back development of
the sector.
Radio Second phase of FM licencing was Intense competition for audiences and
successful advertising. Weaker players will suffer
in the long term
Will capture increased share of
advertising
Newspapers Very competitive in major cities, but Long term structural impact of Internet
increasing literacy and strong growth in will be negative for newspapers
adspend should benefit the sector
Highest growth is in local language titles
Classified Growth in SME sector and private Long term structural impact of Internet
directories consumption drives adspend growth will be negative for print directories
Regulatory clarity for telephone

directories could also aid growth
Consumer Circulation growth is strong, but Longer term impact of Internet on

magazines readership appears to be declining; readership and display advertising
rapidly growing number of foreign titles
should help grow the market (revenue
and circulation)
Business Increased demand for business Longer term impact of Internet on

publishing information from emerging industry readership of print titles
sectors
Marketing services Benefit from increased adspend and Low profitability due to heavy price
marketing budgets competition
Outdoor advertising Enhanced transport infrastructure Prices are currently very high and may
(metro, roads and airports) offers new see a significant decrease as new
opportunities. capacity comes onstream

Page 15 of 260
Indian media market
Sector background – growth and reach
Growth in Indian adspend (98 – 2008)
6,000 30%
5,000 20%
Total adspend (US$ mn)
4,000 10%
% change
3,000 0%
2,000 -10%
1,000 -20%
- -30%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total adspend % change
Media reach (2005, 2006)
250
230 2005 2006
222
206 207
200
No. of users (millions)
150
119
100
75 76
68
51
50 39
23 25
7.2 9.4
0
Daily Cab & Sat Magazines Internet (Mthly Cinema - urban Cinema - total FM Radio
new spapers Television (Wkly reach) reach)
(Wkly reach)

Page 16 of 260
Indian media market
Forecast for 2007 - 2012
2006 Revenues
Rs millions (2006) Revenues
Television 152,238
Newspapers 87,503
Magazines 10,553
Radio 4,280
Outdoor 10,316
Online 1,598
Cinema advertising 1,595
Directories 2,500
Business media 4,500
Filmed entertainment 58,500
Music 10,000
Total 343,581
Indian media market – Revenues (2006 - 2012)
900,000 25%
Media Market (Rs millions)
800,000 766,128
621,776 693,873
700,000 20%
600,000 553,991
% change
480,972 15%
500,000
415,382
400,000 343,581
10%
300,000
200,000 5%
100,000
- 0%
2006 2007 2008 2009 2010 2011 2012
Media Market Revenues % Change
Indian media market – Adspend (2006 - 2012)
350,000 13%
299,266
300,000 12%
Adspend (Rs millions)
247,303 272,577
11%
250,000 223,108
% change
200,357 10%
200,000 178,800
159,640 9%
150,000
8%
100,000
7%
50,000 6%
- 5%
2006 2007 2008 2009 2010 2011 2012

Page 17 of 260
Indian media market
II) INVESTMENT THESIS

Page 18 of 260
Indian media market
A.Investment case
The fundamental growth prospects for the Indian economy are extremely strong.
The country is achieving GDP growth in the region of 9% p.a. (eighteen months to
December 2006) and the government is continuing with a programme of economic
liberalisation. However, there is also strong evidence that the economic reform
programme may not be sufficiently radical to remove the three major bottle necks
which hold back development, i.e. poor infrastructure, power shortages and
bureaucracy.
From the perspective of potential investors in the media sector, there is compelling
evidence to conclude that the sector presents many exciting growth opportunities in
the medium to long term. Some basic analysis of key sector measures (media
reach, adspend, Internet penetration, cinema screens), illustrates that virtually all
segments of the Indian media sector are likely to achieve strong growth.
Figure 1) Sector drivers for the Indian media market

Growing literacy
Demographic
Demographic Urbanisation (easier access to media in cities)
Growing individual prosperity (equity and real estate boom)

means private consumption and media spend grow
Economic
Economic
Growth in size of middle class
Growth in size of private sector
Sector
Sector drivers
drivers
Greater investment in product development

Corporate
Corporate Increase in marketing spend because of new product
launches and increased competition
New technology ‘eliminating’ traditional bottlenecks (e.g.

Technology mobile telecoms, DTH)
Technology
Technology is lowering cost to consumers (helping media
expand into rural areas) and advertisers
Here we will assess the investment case for the media sector through an analysis
of the wider economic and demographic evidence, sector-specific factors and then
an analysis of growth prospects for each segment of the media industry.

Page 19 of 260
Indian media market
Economic and demographic factors
Since the launch of India’s economic reform programme in the early 1990s, the
Indian economy has made great progress in accelerating economic growth and
opening up to global markets. This growth has helped create a new sense of
economic prosperity among India’s large middle class.
Strong sustained, economic growth

GDP growth has been amongst the highest of the major world economies at nearly
6% p.a. (growth in the manufacturing sector was nearer 10%). In the year to March
2007, the economy is expected to grow by 9.2% with the services sector achieving
11.2% and the manufactruing sector, 11.3%; agriculture will grow at 2.7%. The
government has set a long term target of 10% annual GDP growth.
Growth in property and equity prices

Both property and equities have increased strongly in the last five years. This has
enormously benefited the middle classes. The growth has been driven by
increased disposal income and easier access to residential mortgages.
Figure 2) Performance of the Indian stock market
BSE Sensex Dow Jones IA FTSE 100
Increasing globalisation
The economy has become increasing integrated into the global economy with the
growth of India’s export-driven IT services industry at the forefront. India’s services
exports grew at a CAGR of 17.3% in the 1990s (compared to China’s growth of
1
15.8% and a world average of 5.6%). This has also led to significant growth in
foreign direct investment (though the absolute value is still low when compared to
countries such as China).

Page 20 of 260
Indian media market
Figure 3) Growth in international trade
% growth 2005 2006 2007 2008 2009 2010
Exports of goods & services 22.3 18.4 14.6 13.3 12.1 12.2
Imports of goods & services 19 13.3 11.8 12.2 12.7 12.7
Robust financial infrastructure

India’s financial markets and institutions are well developed and efficient and there
is a strong corporate governance and legal infrastructure (historically based on the
English system). With respect to media companies, there are approximately 60
media companies listed on the major national stock exchanges.
Stable currency
The Indian currency has maintained a good level of stability (broadly in the Rs 45 –
Rs 50 per US$ range over the last five years).
Figure 4) Trend in Indian Rupee:US$ exchange rate
Reform-driven political agenda

All of India’s major political parties have committed themselves to a focus on
maintaining rapid economic growth and attracting foreign investment.
Indian diaspora is an important network

The Indian diaspora of 20 million (largely in UK, USA, Canada and South Africa)
plays an important role in encouraging economic development and further
liberalisation and channeling foreign investment.

Page 21 of 260
Indian media market
Sector-specific factors
We believe that the Indian media sector will grow at a high rate driven primarily by
strong economic growth, increasing personal consumption and leisure spend and
to some extent market deregulation. The ‘growth opportunity’ compared to similar-
sized economies is significant; on an adspend per capita basis, Indian adspend is
considerably lower than China.
2
Figure 5) Adspend analysis for key emerging economies
35.0
Adspend per capita (US$,2004)
30.0
Russia
25.0 Brazil
20.0
15.0
10.0
China
5.0
India
-
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
GDP per capita (US$, 2005)
Growth in the media sector will also be driven by other demographic and
technology-related factors.
Improving literacy
India’s literacy rate of 71% is growing rapidly but is still well below developed
economies. This should benefit the publishing sector where reach of media such
as newspapers and magazines is still well below the levels in countries such as
China.
Increasing number of content “access points”

Indian consumers can access media content through an increasing number of
places; these include a growing number of cinema multiplexes (which are
increasing the number of family visits), increased penetration of broadband Internet
and mobile services and the launch of DTH services with over a 100 channels.
This growth will increase demand for media content in a range of different formats.
Substantial improvements in communications infrastructure

India’s digital infrastructure is also improving with strong growth in penetration and
quality of Internet and mobile services.

Page 22 of 260
Indian media market
B. Growth forecast (2007 – 2012)
This is Heernet ventures’ 5 year revenue forecast for the Indian media market. The
forecast is based on our analysis of a wide range of quantitative economic and
sector drivers and various qualitative factors which may also impact growth over
the forecast period.
Figure 6) Indian media market, growth forecast (2007 – 2012)
Rs millions 2007 2008 2009 2010 2011 2012 CAGR
Media market
revenues 415,382 480,972 553,991 621,776 693,873 766,128 13.0%
US$ millions 9,231 10,688 12,311 13,817 15,419 17,025
% Change 20.9% 15.8% 15.2% 12.2% 11.6% 10.4%
Figure 7) Indian media market, chart (2007 – 2012)
900,000 25%
Media Market (Rs millions)
800,000 766,128
621,776 693,873
700,000 20%
600,000 553,991
% change
480,972 15%
500,000
415,382
400,000 343,581
10%
300,000
200,000 5%
100,000
- 0%
2006 2007 2008 2009 2010 2011 2012
Media Market Revenues % Change

Page 23 of 260
Indian media market
Figure 8) Indian adspend, growth forecast (2007 – 2012)

350,000 13%
299,266
300,000 12%
Adspend (Rs millions)

247,303 272,577
11%
250,000 223,108
% change
200,357 10%
200,000 178,800
159,640 9%
150,000
8%
100,000
7%
50,000 6%
- 5%
2006 2007 2008 2009 2010 2011 2012
Figure 9) Indian television, growth forecast (2007 – 2012)
Rs millions 2007 2008 2009 2010 2011 2012 CAGR
No. of TV HHs 121 132 144 155 168 179 8.2%

No. of Cable TV HHs 63.0 66.2 69.5 72.9 76.6 80.4 5.0%
No. of DTH HHs - FTA 4.73 6.10 7.74 9.68 11.32 12.45 21.4%
No. of DTH HHs - Pay 2.74 3.58 4.52 5.42 6.37 7.00 20.7%
No. of DTH HHs - Total 7.46 9.68 12.26 15.10 17.69 19.46 21.1%
% growth:
No. of TV HHs 10.0% 9.0% 9.0% 8.0% 8.0% 7.0%
No. of Cable TV HHs 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
No. of DTH HHs - FTA 35.0% 29.0% 27.0% 25.0% 17.0% 10.0%
No. of DTH HHs - Pay 44.0% 31.0% 26.0% 20.0% 17.5% 10.0%
Subscription revenues
Cable TV HHs 123,420 150,355 181,138 204,944 231,401 258,364 15.9%
DTH HHs - Pay 8,044 11,613 16,258 20,810 24,987 27,737 28.1%
Total 131,464 161,967 197,395 225,754 256,387 286,101 16.8%
% growth:
Advertising 9.5% 9.5% 8.5% 9.2% 9.0% 8.5%
Subscription 46% 23% 22% 14% 14% 12%
Advertising 68,151 74,625 80,968 88,417 96,375 104,566 8.9%

Subscription 131,464 161,967 197,395 225,754 256,387 286,101 16.8%
Total Television
Revenues 199,614 236,592 278,364 314,171 352,762 390,668 14.4%
% Change 31.1% 18.5% 17.7% 12.9% 12.3% 10.7%

Page 24 of 260
Indian media market
Figure 10) Indian newspapers, growth forecast (2007 – 2012)
Rs millions 2007 2008 2009 2010 2011 2012 CAGR
% growth
Display 13.3% 13.1% 12.6% 11.5% 10.9% 10.4%
Classified 15.2% 15.6% 14.5% 12.6% 10.5% 10.5%
Cover price 6.5% 6.5% 6.5% 7.0% 7.5% 7.0%
Display 63,218 71,499 80,508 89,767 99,551 109,905 11.7%

Classified 11,343 13,113 15,014 16,906 18,681 20,642 12.7%
Total Advertising 74,561 84,612 95,522 106,673 118,232 130,547 11.9%
Cover price 23,280 24,793 26,405 28,253 30,372 32,498 6.9%
Total Newspaper
Revenues 97,841 109,405 121,927 134,926 148,605 163,045 10.8%
% Change 11.8% 11.8% 11.4% 10.7% 10.1% 9.7%
Figure 11) Indian consumer magazines, growth forecast (2007 – 2012)
Rs millions 2007 2008 2009 2010 2011 2012 CAGR
% growth
Advertising 10% 10% 11% 9% 8% 7%
Cover price 5% 6% 6% 6% 6% 6%
Advertising 9,673 10,641 11,811 12,874 13,904 14,877 9.0%

Cover price 1,847 1,958 2,075 2,199 2,331 2,471 6.0%
Total Consumer
Magazines
Revenues 11,520 12,598 13,886 15,074 16,236 17,349 8.5%
% Change 9.2% 9.4% 10.2% 8.6% 7.7% 6.9%
Figure 12) Indian online media, growth forecast (2007 – 2012)
Rs millions 2007 2008 2009 2010 2011 2012 CAGR
% growth
Advertising 35% 35% 30% 30% 27% 25%
Subscription 20% 20% 15% 15% 15% 15%
Advertising 2,126 2,870 3,732 4,851 6,161 7,701 29.4%

Subscription 27 32 37 43 49 57 16.0%
Total Online Revenues 2,153 2,903 3,769 4,894 6,210 7,758 29.2%
% Change 34.8% 34.8% 29.8% 29.9% 26.9% 24.9%

Page 25 of 260
Indian media market
Figure 13) Indian other media, growth forecast (2007 – 2012)
Rs millions 2007 2008 2009 2010 2011 2012 CAGR
RADIO
% growth 30% 25% 20% 16% 15% 15%
Total Radio Revenues 5,563 6,954 8,345 9,680 11,132 12,802 18.1%
% Change 30.0% 25.0% 20.0% 16.0% 15.0% 15.0%
OUTDOOR
% growth 5% 6% 6% 6% 6% 6%
Total Outdoor Revenues 10,831 11,481 12,170 12,900 13,674 14,495 6.0%
% Change 5.0% 6.0% 6.0% 6.0% 6.0% 6.0%
CINEMA ADVERTISING
% growth 20% 20% 17% 15% 10% 9%
Total Cinema
Advertising Revenues 1,914 2,297 2,687 3,090 3,399 3,705 14.1%
% Change 20.0% 20.0% 17.0% 15.0% 10.0% 9.0%
DIRECTORIES
% growth 15% 15% 15% 12% 10% 9%
Total Directories
Revenues 2,875 3,306 3,802 4,258 4,684 5,106 12.2%
% Change 15.0% 15.0% 15.0% 12.0% 10.0% 9.0%
Figure 14) Indian business media, growth forecast (2007 – 2012)
Rs millions 2007 2008 2009 2010 2011 2012 CAGR
% growth
Advertising 15% 15% 14% 12% 10% 9%
Cover price 16% 15% 15% 13% 12% 10%
Exhibitions 10% 9% 9% 8% 7% 6%
Advertising 3,105 3,571 4,071 4,559 5,015 5,466 12.0%

Cover price 1,566 1,801 2,071 2,340 2,621 2,883 13.0%
Exhibitions 495 540 588 635 680 720 7.8%
Total business media
revenues 5,166 5,911 6,730 7,535 8,316 9,070 11.9%
14.8
% 14.4% 13.8% 12.0% 10.4% 9.1%

Page 26 of 260
Indian media market
Figure 15) Indian film and music market, growth forecast (2007 – 2012)
Rs millions 2007 2008 2009 2010 2011 2012 CAGR
FILM
% growth 17.0% 17.5% 16.5% 14.5% 13.5% 11.5%
Total Film Revenues 68,445 80,423 93,693 107,278 121,761 135,763 14.7%
% Change 17.0% 17.5% 16.5% 14.5% 13.5% 11.5%
MUSIC
% growth
Analogue -6% -5% -7% -10% -15% -17%
Digital 110% 105% 65% 50% 45% 45%
Analogue 9353 8,885 8,263 7,437 6,321 5,247 -10.9%

Digital 105 215 355 533 772 1,120 60.6%
Total Music Revenues 9,458 9,101 8,619 7,970 7,094 6,367 -7.6%
% Change -5.4% -3.8% -5.3% -7.5% -11.0% -10.2%

Page 27 of 260
Indian media market
Sector analysis
Figure 16) Sector positives and risks matrix
Sector Key sector positives Key sector risks
Free to air Increase in TV penetration driving growth Channels may lose audiences to premium
television in adspend content Pay TV channels
Pay TV DTH and rollout of conditional access in Significant price competition could lead to
cable leading to substantial growth in heavy losses for industry, especially the
subscription revenues weaker players
Broadcast Increased demand for quality content from Few risks due to strong demand for
content channel operators content from all broadcasters
Filmed Growth in multiplexes (higher ticket prices Cinemas: There is the possibility of a
entertainment and greater transparency) and overseas shakeout due to ‘over capacity’
revenues
Increased revenues from Pay TV operators

for film rights
Music Non-film music will exhibit strong growth Piracy a significant issue with both
analogue and digital music
Digital music presents many new revenue
streams
Internet Strong growth in reach, usage and Growth in Broadband roll-out is quite slow
revenues and may hold back development of the
sector.
Radio Second phase of FM licencing was Intense competition for audiences and
successful advertising. Weaker players will suffer in
the long term
Will capture increased share of advertising
Newspapers Very competitive in major cities, but Long term structural impact of Internet will
increasing literacy and strong growth in be negative for newspapers
adspend should benefit the sector
Highest growth is in local language titles
Classified Growth in SME sector and private Long term structural impact of Internet will
directories consumption drives adspend growth be negative for print directories
Regulatory clarity for telephone directories

could also aid growth
Consumer Circulation growth is strong, but readership Longer term impact of Internet on
magazines appears to be declining; rapidly growing readership and display advertising
number of foreign titles should help grow
the market (revenue and circulation)
Business Increased demand for business Longer term impact of Internet on

publishing information from emerging industry sectors readership of print titles
Marketing Benefit from increased adspend and Low profitability due to heavy price
services marketing budgets competition
Outdoor Enhanced transport infrastructure (metro, Prices are currently very high and may see
advertising roads and airports) offers new a significant decrease as new capacity
opportunities. comes onstream

Page 28 of 260
Indian media market
Figure 17) Adspend growth drivers
Sector Primary growth drivers
Newspapers Ongoing growth in readership (6.6% in 2005)

New classified advertising sectors (e.g. property, automotive)
Consumer magazines Increasing affluent reader base (attractive to many advertisers)

New title launches (many foreign titles)
Radio Growing from a very small base

Significant number of new station launches
Increasing number of advertisers allocating adspend budget to radio
(especially to national networks)
Television Ongoing penetration of households (10% p.a. growth)

But increasing audience fragmentation with growth of DTH and cable TV
Online media Growing from a very small base

Strong growth as Internet penetration and usage grows
Business, scientific and Growing from a small base

academic media
Economic growth will fuel launches in new sectors (e.g. retail, energy)
Outdoor advertising Well established medium

Growth will come from higher rates for premium sites and new contracts
for transport networks
Directories Growing from a small base

Yellow pages directories are being launched in an increasing number of
small cities
Cinema advertising Driven by growth in affluent audiences visiting multiplexes

Page 29 of 260
Indian media market
C.Analysis of investment activity
Both media companies and financial investors have been activiely investing in the
Indian media market since the mid 1990s. Early investments were limited to the
commercial television market, but since 2002, the range and size of deals has
broadened significantly. This is due to regulatory liberalisation and the
development of new sectors such as radio and online media.
The biggest trend in 2006 has been the huge growth in private equity investment;
virtually all of the investment activity in online media has involved private equity and
more traditonal media companies see it as an alternative to doing an IPO.
Private equity investment

Investment by domestic private equity funds had been relatively limited with much
of their focus on infrastructure-related projects. However, this is changing and
funds such as Relaince Capital, IDBI and Matrix Partners have made significant
media investments.
Foreign private equity funds have been allowed to operate in India since 1995.
Funds which have made substantial investments in India include 3i, Sequoia
Capital, Blackstone and KPCB.
Figure 18) Recent private equity investments

Investor Investee Country of Notes
investor
NorthWest Ventures Yatra.com India, USA Consideration: Rs 230.7 million

Capital, Reliance Capital
and Television Eighteen
Westbridge Capital Indiatimes.com USA Acquired 15% stake in the Indiatimes

Partners, Sequoia Capital portal (owned by Bennett, Coleman & Co.
Ltd)
KPCB, Sherpalo Ventures Cleartrip.com USA Consideration: Rs 138 million
The portal offers hotel and flight bookings

in India
KPCB, Sherpalo Ventures InfoEdge USA Consideration: Rs 211 million
InfoEdge operates 99acres.com,

jeevansathi.com and naukri.com portals.
3i Nimbus UK Acquired 33% stake for Rs 2 billion.

Communications
Nimbus is a television sports and
entertainment production company.
Yahoo, Canaan Partners Bharat USA Consideration: Rs 395 million

Matrimony
Group One of the leading online matrimonial
portal.
Blackstone Group Ushodaya USA Consideration: Rs 12.3 billion for 26%

Enterprises stake
The Eenadu Group (active in newspapers,

television and film)

Page 30 of 260
Indian media market
Initial Public Offerings

There have been 13 IPOs by media companies since 2004 and the demand from
investors has been very strong (though this has been the case for most Indian
IPOs). Many of these companies have a relatively small free float (as most of the
equity is still held by the founding entrepreneurs).
Figure 19) Recent IPOs
Company Sector IPO date
2007
Global Broadcast News Ltd News broadcasting Jan-07
2006
Pyramid Saimira Theatre Limited Cinemas Dec-06
Info Edge (India) Ltd. Online media Nov-06
Sun TV Ltd Diversified media Apr-06
K Sera Sera productions ltd Film and television Feb-06
content
Inox Leisure Ltd Cinemas Feb-06
Entertainment Network (India) Limited Radio Jan-06
Jagran Prakashan Limited Newspapers Jan-06
Prior to 2006
PVR Limited Cinemas Dec-05
UTV Software Communications limited Film and television Feb-05
content
HT Media Ltd Newspapers Aug-05
Deccan Chronicle Holdings Limited Newspapers Dec-04
New Delhi Television Limited (NDTV) Broadcasting Apr-04
TV Today Network limited Broadcasting Dec-03

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Indian media market
Figure 20) Major acquisitions and investments by media companies

Date Country of Investor Investee Notes
investor
Business media
Jun-04 Switzerland Ringier Infomedia Limited Joint venture to launch new titles in India. New specialist magazine titles to be
launched in 2005.
Mar-06 UK United Business Media MediWorld Publications Acquired for Rs 90 million. Medical directory publisher.
Consumer
magazines
Oct-03 UK BBC Worldwide Times of India Joint venture called Worldwide Media in which each party has a 50% stake.
August 2005: Launch of the BBC title, Top Gear in India.
Nov-03 UK Haymarket publishing Sorabjee Automotive Publishing Acquired 50% stake. SAP is the publisher of Autocar India.
Filmed
entertainment
and music
Mar-06 India Ideas.com India Private Limited Pritish Nandy Communications Acquired 2.2% stake.
Apr-06 India Zee Telefilms Venus Films & Venus Records Acquired 60% stake.
Internet
May-04 USA Monster Jobsahead Consideration: Rs 400 million.
Jun-04 USA E-bay Baazee.com Consideration: Rs 2.3 billion.
One of the leading online portals offering hotel, airline and car rentals.
Oct-04 India Television Eighteen CommoditiesControl.com Consideration: Rs 13 million.
Commodities information and trading portal
Nov-04 China TOM Online Indiagames.com Consideration: Rs 810 million for 80%.
Online and mobile game developer and publisher in India
Jul-05 India Gujarat NRE Coke Steel RX Corporation Delhi based Steel & Metal based portal (www.steelrx.com)
Aug-05 India Television Eighteen CricketNext.com Consideration: Rs 110 million.

Portal offers cricket based information and updates.
Nov-05 India Satyam Computer Services Sify.com Consideration: Rs 2,873 million for 31%.
Sify India is one of the leading online portal in general genre.
Jan-06 India Sirf Technology Bluetooth Solutions Consideration: Rs 688 million.

Page 32 of 260
Indian media market

investor
Apr-06 USA IndusLogic Lambent Technologies Consideration: Rs 577 million.

Lambent Technologies is based in Nagpur.
May-06 India VSNL 7 Star Consideration: Rs 70 million.
Acquisition of 7 Star's online business.
Jun-06 India ezeego1.com etoursonline.com Online travel
Jun-06 USA Sify Limited Global Travels Consideration: Rs 184 million.

Global travels is one of leading player in airlines e-ticketing between India-USA.
Jun-06 India Television Eighteen Jobstreet.com (India) Consideration: Rs 92 million for 50%.
Jobstreet.com is listed on MESDAQ stock exchange.
Jul-06 USA Position2 Webshastra Search engine marketing company
Learning
Aug-05 USA TechBooks Maximise Learning Pune based e-learning company.
Marketing
services
Jan-05 UK Aegis Percept Group Acquired 51% stake in Percept group offers outdoor advertising services.
Feb-05 USA Omnicom Kidstuff Promotions Acquired by Omnicom’s Indian subsidiary, Mudra Communications
Aug-05 UK WPP (Bates Asia) Enterprise Nexus Consideration: Rs 400 million for 74%.
Nov-05 France Publicis Solutions Integrated Acquired 60% stake
Marketing services
Jan-06 UK WPP (Bates Asia) Sercon Acquired amajority stake
Indian marketing services group
Jun-06 UK IMS Group Candid Consideration: Rs 2,300 million for 66%.
Indian BTL line
Jun-06 UK M & C Saatchi Dhar & Hoon Marketing services
Jun-06 USA Parexel International Synchron Research Services Indian market research group
Aug-06 Germany Gfk Mode Group Acquired 51% stake
Market research services
Dec-06 UK WPP Ray + Kesavan Design agency

Page 33 of 260
Indian media market

investor
Newspapers
Sep-03 UK Financial Times Business Standard Consideration: Rs 141 million for 13.85%.
Business Standard is a leading English language business newspaper. 14%
stake acquired by Pearson (FT’s parent)
Jan-04 USA Dow Jones & Co. Times of India DJ acquired a 26% stake in a joint ventures with Times of India to publish an
Indian version of the Wall Street Journal. Deal expired.
Dec-04 UK Independent News and Media Jagran Prakashan Publisher of the Hindi language paper, Dainik Jagran. 26% stake acquired by
(INM) INM
Outdoor
advertising
Jul-04 USA Clear Channel Mid-day Outdoors Merger of outdoor advertising operations.
Publishing
Feb-06 India CyberMedia Sx2 Media Labs LLC Consideration: Rs 45 million for 20%.
IT periodicals publisher.
Jun-06 India Bennett Coleman & Co Vijayanand Printers Limited Publisher of Vijaya Times in Karnataka State.
Feb-07 India CyberMedia Publication Services of Illinois Publishing services company
Radio
Jan-06 U.K BBC Worldwide Radio Midday West (India) Consideration: Rs 319 million.
Wholly owned subsidiary of Mid Day Multimedia radio operations
Jan-06 India, Malaysia Value Labs, NDTV and Astro Today Broadcasting Limited- Living Consideration: Rs 1 billion for 100%.
Consortium Media FM radio operations acquired by consortium lead by Value Labs, Astro
(Malaysia) and NDTV.
Television
Sep-00 USA News Corporation (Star TV) Hathway Cable Acquired 26% stake.
Dec-01 USA Time Warner Zee Telefilms Acquired 26% stake in a new channels’ venture with Zee.

Page 34 of 260
Indian media market

investor
May-02 USA Discovery Communications Sony Entertainment Television Discovery acquired a 26% stake in a new channels’ venture with Sony.
Jan-05 USA News Corporation (Star TV) Balaji Telefilms Acquired 26% stake
Apr-05 UK Reuters Times of India Global Broadcasting Acquired 26% stake.
New English language news channel
Jun-05 USA CNBC Asia Television Eighteen CNBC had 51% stake in news channel joint venture with TV-18 (reduced stake
to 10% in 2004)
Jun-05 USA News Corporation (Star TV) UTV Group Acquired 37% stake (exited in 2004)
Feb-06 India Television Eighteen Channel 7 Consideration: Rs 600 million for 50%.
Jagran Prakashan diluted stake in television channel.
Feb-06 India Bennett Coleman & Co Sahara One Media & Entertainment Consideration: Rs 378 million for 6%.
Sahara One Media & Entertainment (SOME) has the largest city and regional
based Hindi news television channel network; with coverage in 36 areas.
Mar-06 India Nimbus Communications BCCI Cricket rights Consideration: Rs 612 million for 100%.
Broadcasting rights acquisition
Mar-06 USA EchoStar Doordarshan Consideration: Rs 284 million for 100%.
Broadcasting rights of 4 Doordarshan channels in United States.
Apr-06 India C Sivasankaran Sahara One Media & Entertainment Consideration: Rs 940 million for 15%.
Investor is founder of AirCel Telecommunication Company.
Apr-06 India VSNL Thomson Investment: Rs 2.3 billion for 50% stake.
Joint venture operations will focus in online entertainment genre.
Sep-06 USA Walt Disney Hungama TV (UTV) Consideration: Rs 1.4 billion for 100%.
UTV divested kid channel.
Sep-06 India Adlabs Limited Synergy Communication Private Acquired 51%.
Limited Television content production house.

Page 35 of 260
Indian media market
Figure 21) Major acquisitions and investments by financial investors

Date Segment Country of Investor Investee Notes
investor
Apr-00 Television USA Intel Capital IndusInd Media & Acquired 3.5% stake in the Hinduja Group’s Cable TV operations
Communications
Mar-02 Television Singapore CDP Capital Sony Entertainment Acquired 10% stake for Rs 4.5 billion
TV
Apr-02 Television Singapore CDP Capital UTV Group Acquired 31% stake (exited in 2004)
Sep-02 Television USA GE Capital TV Today Acquired 6.2% stake
Sep-03 Newspapers Australia Henderson Capital HT Media Acquired 15.4% stake for Rs 1 billion
Sep-04 Internet UK 3i, BV Capital Indiagames.com Consideration: Rs 367 million
Oct-04 Newspapers USA Citicorp HT Media Acquired 8.3% stake for Rs 690 million.
May-05 Internet India Soft Bank Asia Infrastructure Fund MakemyTrip.com Consideration: Rs 461 million for a 51% stake
The company was launched in 2000.
Sep-05 Filmed entertainment USA DFJ Seventymm Consideration: Rs 92 million

and music
Nov-05 Internet USA Infinity Capital Sify.com Consideration: Rs 1,707 million for a 40% stake
Sify India is one of the leading online portals
Dec-05 Internet India Sequoia Capital Times Internet Consideration: Rs 322 million
Times of India online portal.
Feb-06 Internet USA KPCB, Sherpalo Ventures Naukri.com Consideration: Rs 460 million
One of the leading online jobs portal.
Feb-06 Internet India Sequoia Capital Travelguru.com Consideration: Rs 460 million
One of the leading online portals offering hotel, airline and car rentals.
Mar-06 Filmed entertainment India Sonata Investments Limited Pritish Nandy 9.3% stake
and music Communications
Mar-06 Internet India Sequoia Capital Nazara Technologies Consideration: Rs 69 million
Online and mobile games developer in India.

Page 36 of 260
Indian media market

investor
Mar-06 Internet India Sequoia Capital Shaadi.com Consideration: Rs 368 million
The leading online matrimony portal in India
Jun-05 Internet India, USA NorthWest Ventures Capital, Yatra.com Consideration: Rs 230.7 million
Reliance Capital and Television
Eighteen NorthWest Ventures Capital is plan to invest US$ 650 million in mobile and
consumer Internet enterprises in India
Jun-05 Television Asia Standard Chartered Private Equity NDTV SCPE acquired a 9.49% stake in the news channel broadcaster
Jun-05 Television USA Warburg Pincus UTV Group Acquired 26% stake (exited in 2002)
Aug-05 Internet USA Westbridge Capital Partners, Indiatimes.com Acquired 15% stake in the Indiatimes portal (owned by Bennett, Coleman & Co.
Sequoia Capital Ltd)
Jun-06 Filmed entertainment India Reliance Capital Pritish Nandy 9% stake

and music Communications
Jun-06 Internet Not identified Not identified Burrp, Inc Mumbai based blog provider in India.
Jun-06 Internet USA KPCB, Sherpalo Ventures Cleartrip.com Consideration: Rs 138 million
The portal offers hotel and air ticket bookings in India
Jun-06 Internet USA KPCB, Sherpalo Ventures InfoEdge Consideration: Rs 211 million
InfoEdge hosts 99acres.com, jeevansathi.com and naukri.com portals.
Aug-05 Television UK 3i Nimbus Acquired 33% stake for Rs 2 billion.

Communications
Nimbus is a television sports and entertainment production company.
Aug-06 Internet USA Yahoo, Canaan Partners Bharat Matrimony Consideration: Rs 395 million
Group
One of the leading online matrimonial portal.
Sep-06 Internet India Matrix Partners Seventymm Consideration: Rs 320.7 million
Portal has 7,500 customers and film library of 10,000 titles.
Jan-07 Internet India Matrix Partners Digital Music India Invested in vJive offering

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Indian media market

investor
Jan-07 Radio India IDBI BAG Films Limited Acquired 10% stake
BAG owns 10 radio licences
Jan-07 Radio India Sameer Gehlaut BAG Films Limited Consideration: Rs 263.25 million for 25% stake
BAG owns 10 radio licences
Feb-07 Diversified media USA Blackstone Group Ushodaya Enterprises Consideration: Rs 12.3 billion for 26% stake
The Eenadu Group (active in newspapers, television and film)
Feb-07 Radio USA Balfour Capital Noble Broadcasting Consideration: Rs 17 million for 20%
Corporation
Radio broadcasting arm of Tamil publisher, Kumudham Publications

Page 38 of 260
Indian media market
III) MEDIA MARKET OVERVIEW

Page 39 of 260
Indian media market
A. Overview
The Indian media market is in the midst of a period of unprecedented growth. The
sector as it is recognisable today emerged in the early 1990s with the launch of
commercial television. In addition to the emergence of domestic broadcasters such
as Zee TV and Sun TV, a number of foreign broadcasters (Star TV, Sony) entered
the Indian market. In the late 1990s, the birth of the Internet, licencing of
commercial radio and double digit growth in print adspend fuelled further strong
growth. Since then a process of regulatory liberalisation and strong economic
growth have continued to generate double digit growth in revenues.
Figure 22) Development of the Indian media market
Emergence of Liberalisation of
commercial TV foreign investment
rules in print media
Surge in investment in
Domestic Emergence of first
Indian Internet
broadcasters (Zee, Internet companies
companies
Sun TV) emerge
Investment
activity Launch of DTH
Launch of
Entry of major commercial
broadcasters (News radio
Increased activity by
Corporation, Disney)
foreign magazine
publishers
1991 2005
Socio - Population: 835 million Population: 1.2 billion
economic Literacy: 52% Literacy: 70%
growth Urban population: 25% Urban population: 30%
drivers GDP per capita: Rs 6,720 GDP per capita: Rs 31,600
1990 1995 2002 2005/06 2008
In the last two years, key growth drivers have included the rollout of multiplexes,
DTH and the implementation of conditional access technology on India’s cable TV
networks. In addition to this, a large number of new radio stations are coming on
air across the country and Internet usage is growing strongly.
The media market has evolved at such a rapid rate, that the Indian government has
been reactive when developing media regulation rather than proactively setting the
‘regulatory agenda.’ The effect of this has been to create some ‘anti-competitive’
issues; for example, there are no cross-media ownership rules and in some
geographic regions, local media companies have established leadership in both
print and broadcast media.

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Indian media market
B. Market size and structure

The India media market generated revenues of approximately Rs 340 billion
(US$7.5 billion) in 2006. Film and music revenues accounted for a fifth of the
market.
3
Figure 23) Indian media market, revenues
(Rs millions) 2006 Advertising Subscription Other Total
Television 62,238 90,000 152,238

Newspapers 65,643 21,859 87,503
Magazines 8,794 1,759 10,553
Radio 4,280 - 4,280
Outdoor 10,316 - 10,316
Online 1,575 23 1,598
Cinema advertising 1,595 - 1,595
Directories 2,500 2,500
Business media 2,700 1,350 450 4,500
Filmed entertainment 58,500 58,500

Music 10,000 10,000
Total 159,640 114,991 68,950 343,581
4
Figure 24) Share of revenues by type
Fim and
music Advertising
20% 46%
Subscription
34%
The media market has been achieving annualised growwth of between 10%-15%
over the last five years, with sectors such as online media and radio achieving the
highest growth rates.
Two factors which impact the reliability of market size forecasts are the under-
declaration of revenues for Pay TV subscriptions and cinema receipts.

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Indian media market
Market characteristics
High degree of competition

Competition for audiences and advertisers is quite severe in most segments of the
Indian media market. Typically, competition is focused on price rather than on
quality of content or reach. This has meant that in sectors such as newspapers,
editorial quality has declined and circulation revenues have remained flat. With the
current strength of the media market, media companies have absorbed the impact
of price competition – however, in the event of an economic downturn, companies
with weaker products will suffer.
High level of private ownership

Many major media companies are still controlled by the founding
entrepreneurs/families. In recent years, there has been a trend to bring in minority
investors through the IPO route or foreign direct investment, but often such
investment has been limited to subsidiaries and has not been into the group
holding company.
Significant cross media ownership

Leading companies often have activities in both the print and broadcast sectors of
the media industry, with many publishing companies investing in television and
radio over the last five years. This reflects the relatively young nature of the Indian
media industry and we are likely to see increasing specialisation as competition
intensifies and the industry matures. The government is planning to intorduce
cross-media ownership restrictions as part of the Broadcast Services Regualtion
Bill (currently being debated in Parliament).
A sophisticated marketing services industry

Advertising and marketing services in India compare well with those in Europe and
North America (all major European and North American marketing services groups
are active in India through their own operations and joint ventures).
A transparent regulatory environment

The media sector is regulated by a number of bodies (Ministry of Information and
Broadcasting, Telecoms Regulatory Authority of India) which have adopted a
regulatory approach based on industry consultation. Regulatory decisions can and
are regularly challenged in the Indian courts. The Indian media enjoys editorial
freedoms on a par with any other leading democracy; this tradition evolved under
British rule and has continued to this day.
Increasing foreign investment

Foreign media companies have entered the Indian media sector through joint
ventures, partnerships and direct investment. Whilst the rules on foreign direct
investment in media can appear to be quite restrictive, many trade and financial
investors have made investments.

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Indian media market
Significant regional linguistic and cultural diversity

India’s regional complexity is very evident in the media industry, especially in
segments such as television and newspapers. The market can be divided into
three broad segments: English language media; Hindi media; and regional
language media. In recent years, regional language media have achieved greater
growth than both English language and Hindi media. For example, the southern
states of Tamil Nadu, Karnataka and Kerala are typically serviced by local media
produced by local companies (e.g. Sun TV, Malaya Manorama).

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Indian media market
C.Media penetration and usage
The key observation on media penetration and usage in India is that both are low
compared to developed markets, but are growing strongly. The growth is driven
improved literacy, better penetration into rural markets and increasing prosperity.
Penetration and usage vary by media, gender and the urban/rural split.
Newspapers, television and radio are the three most important and widepsread
media in both rural and urban areas. The lower level of literacy among women
means that they consume less print media than men. In addition to this, cinema
going is only now becoming a family activity (with the growth of multiplexes);
traditionally, men were more likely to go to the cinema alone. Internet reach has
been held back by the relatively slow roll-out of access into small cities and rural
areas. Radio reach is growing strongly as new local FM radio stations are
launched (245 new licences issued in 2006).
5
Figure 25) Reach of various media
250
230
222 2005 2006
206 207
200
No. of users (millions)
150
119
100
75 76
68
51
50 39
23 25
7.2 9.4
0
Daily Cab & Sat Magazines Internet (Mthly Cinema - urban Cinema - total FM Radio
new spapers Television (Wkly reach) reach)
(Wkly reach)
In both print and broadcast media, much of the growth in recent years has primarily
been in local language content (English language offferings have had flat or
declining market share). This may be due to increased media penetration of rural
areas and smalll towns where local languages are moe important. The above
analysis suggests that magazine reach is declining; however, this survey doesn’t
accurately reflect the recent growth in circulation of foreign magazines (not covered
by the NRS study).
The growth prospects for media consumption via Internet and mobile platforms are
extremely strong. In 2006, 44% of urban mobile users had used added features
(e.g. SMS) or downloaded some mobile content on their phone.

Page 44 of 260
Indian media market

Page 45 of 260
Indian media market
D.Advertising spend
Overview
India’s 2006 adspend is approximately US$3.4 billion. The two leading market
sources (Adex and ZenithOprimedia) estimate 2005 adspend in the region of
US$2.9 – US$3.7 billion; we believe that the true figure was close to US$3 billion.
6
Figure 26) Indian Adspend
Rs millions (2005 data) Adex ZenithOptimedia
Television 54,120 55,035

Newspapers 55,630 87,480
Magazines 7,581 11,925
Radio 3,170 3,330
Outdoor 8,970 7,470
Online 1,050 450
Cinema 1,450 1,080
Total 131,971 168,727
Note: ZenithOptimedia is converted from US$ at a rate of Rs 45
The two largest segments of adspend are newspapers and television. Sectors
such as radio have only emerged as serious commercial sectors in the last five
years and they are likely to capture an increasing share of adspend.
7
Figure 27) % Adspend by media type
Outdoor Online
7% 1% Cinema
Radio
1%
2%
Magazines
6% Television
41%
New spapers
42%

Page 46 of 260
Indian media market
Indian advertising has consistently achieved double digit growth since the early
1990s, with the exception of one decline in 1998 (when the Indian economy was
impacted by a currency crisis).
8
Figure 28) % growth in adspend (1994 - 2008)
6,000 30%
5,000 20%
Total adspend (US$ mn)
4,000 10%
% change
3,000 0%
2,000 -10%
1,000 -20%
- -30%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Emerging sectors such as online, radio and cinema advertising have achieved the
highest growth rates.
9
Figure 29) Adspend, CAGR historic growth
Total 13.0%
Cinema 99.4%
Online 28.0%
Outdoor 5.2%
Radio 31.2%
Magazines 9.2%
Newspapers 16.1%
Television 10.9%
0% 20% 40% 60% 80% 100% 120%

% CAGR (2001-05)

Page 47 of 260
Indian media market
Adspend analysis
Analysis of the leading advertisers reflects the importance of the FMCG,
automotive and telecoms sectors. Advertising spend from sectors such as financial
services and retailing is underdeveloped compared to more mature economies. In
terms of spend by media type, FMCG advertising allocates virtually all of its spend
to television (the key medium for reaching a mass market audience).
10
Figure 30) Adspend – leading categories of advertisers
2005 data Total % Press % TV % - Radio

adspend
Top 20 advertising categories (Rs mns)
Food and beverages 13,180 4.7% 94.7% 0.6%

Personal car and hygiene 10,559 3.2% 96.4% 0.3%
Automotive 7,745 40.7% 59.0% 0.3%
Banking, finance and investment 6,696 45.8% 53.2% 1.0%
Hair care 6,072 3.5% 96.1% 0.5%
Services 5,873 63.6% 35.5% 0.9%
Durables 4,859 33.6% 66.1% 0.3%
Telecom/Internet services 4,848 32.3% 66.7% 1.0%
Media 4,519 82.2% 14.8% 3.1%
Personal healthcare 4,373 13.2% 86.4% 0.3%
Education 4,241 34.0% 65.4% 0.6%
Textiles and clothing 3,809 89.0% 10.8% 0.3%
Laundry 3,034 34.5% 65.1% 0.3%
Household products 2,971 5.3% 94.5% 0.2%
Corporate and brand identity 2,856 9.0% 90.8% 0.3%
Building and industrial 2,599 52.8% 46.8% 0.4%
Computers 2,558 15.0% 84.6% 0.3%
Retail 2,461 58.8% 40.3% 0.9%
Telecom products 2,196 70.3% 28.3% 1.5%
Insurance 2,010 18.7% 81.1% 0.3%
Figure 31) Adspend – leading advertisers11
2005 data Total adspend % Press % TV % Radio

Advertiser (Rs mns)
Hindustan lever 6,434 2.1% 97.3% 0.6%

Paras Pharmaceuticals 2,933 99.8% 0.1%
Procter & Gamble 2,042 0.1% 99.9%
Reckitt Benkiser 2,015 0.6% 99.3% 0.1%
Dabur 1,717 3.7% 95.9% 0.5%
Nokia 1,637 12.8% 87.0% 0.2%
Johnson & Johnson 1,459 0.7% 99.3%
Pepsi Co 1,416 1.8% 97.9% 0.3%
L'Oreal 1,380 6.1% 93.9%
Colgate Palmolive 1,364 1.2% 98.7% 0.2%
Tata Teleservices 1,262 15.5% 84.0% 0.5%
Maruti Udyog 1,231 27.7% 72.1% 0.2%
Emami 1,226 8.0% 91.7% 0.3%
Bennett Coleman & Co 1,204 92.3% 5.5% 2.2%
Bharti Airtel 1,197 19.8% 79.3% 0.9%
Tata Motors 1,143 28.9% 71.0% 0.2%
Bajaj Auto 1,004 37.0% 62.9% 0.1%
TVS Motor company 935 26.4% 73.6%
ITC 822 16.6% 83.1% 0.3%
LG Electronics 822 45.4% 54.4% 0.3%

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Indian media market
Growth prospects
The medium term prospects for advertising are extremely good, even for the more
mature, well established sectors such as outdoor advertising and television.
12
Figure 32) Adspend growth prospects
Sector Primary growth drivers
Newspapers Ongoing growth in readership (6.6% in 2005)

New classified advertising sectors (e.g. property, automotive)
Consumer magazines Readership of domestic titles appears to be declining, but

circulation growth is strong
New title launches (many foreign titles)
Radio Growing from a very small base

Significant number of new station launches
Increasing number of advertisers allocating adspend budget
to radio (especially to national networks)
Television Ongoing penetration of households (10% p.a. growth)

But increasing audience fragmentation with growth of DTH
and cable TV
Online media Growing from a very small base

Strong growth as Internet penetration and usage grows
Business, scientific and Growing from a small base

academic media Economic growth will fuel launches in new sectors (e.g. retail,
energy)
Outdoor advertising Well established medium

Growth will come from higher rates for premium sites and new
contracts for transport networks
Directories Growing from a small base

Yellow pages directories are being launched in an increasing
number of small cities
Cinema advertising Driven by growth in multiplexes (and audiences)

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Indian media market
E. Major players
Major players in the Indian media market tend to fall into one of three categories:
long established media companies, often controlled by a founding family and with
activities in a wide range of media; companies established since the 1990s by
entrepreneurs and typically focused on one media segment; and thirdly, foreign
players who entered the market in the 1990s.
Figure 33) Major players by sector
Sector Domestic players Leading foreign players
Filmed Adlabs Films Star TV (News Corporation) – stake in

entertainment and Balaji Telefilms Balaji Telefilms
music K Sera Sera Eros International
Mukta Arts
UTV Software communications
Music:
Saregama
Cinemas:
Inox Leisure
PVR Cinemas
Pyramid Saimira Theatres
Shringar Cinemas
Television and Global Broadcast News Star TV (News Corporation)

radio NDTV Sony
Nimbus Sports Disney
Prasar Bharti Discovery Networks
Sun TV Time Warner
Television Eighteen BBC Worldwide
TV Today Network
Zee Entertainment
Radio:
Mid-day Multimedia
ENIL
Adlabs Films
DTH:
Dish TV
Tata Sky
Cable TV:
InDigital
Hathway cable
Wire & Wireless India

Page 50 of 260
Indian media market
Sector Domestic players Foreign players
Publishing Deccan Chronicle Conde Nast

Delhi Press Financial Times (stake in Business
Eenadu group standard)
HT Media Haymarket publishing
Jagran Prakashan Independent News and Media (stake in
Jagran Prakashan)
Living Media
BBC Worldwide
Kasturi & Sons (The Hindu group)
United Business Media
Mid-day Multimedia
Macmillan
Sandesh
Times of India group
Business media:
Cybermedia
Infomedia India
Jasubhai Group
Directories:
Indiacom
Tej Bandhu group
Alternative media Selvel Vantage Clear Channel

Posterscope JCDecaux
Marketing Mudra Communications Havas

services IB & W Publicis
Omnicom
Interpublic
WPP
Online media Infoedge Google

Bharatmatrimony MSN
Shaadi.com Monster.com
Yahoo

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Indian media market
F. Regulatory environment
The media regulatory environment has developed along similar lines to those in
Europe and North America, with a number of independent regulators implementing
policy on behalf of the government. Regulatory development has largely been
reactive and their have been problems in sectors such as Radio, where the first
phase of commercial radio licencing was poorly handled.
The key department is the Ministry of Information and Broadcasting which plays a
lead role in policy formulation (e.g. radio licencing), oversight of public service
broadcasting and foreign investment. The telecoms regulator, Telecoms
Regulatory Authority of India (TRAI) has responsibility for regulating the Internet
services provision, cable television and DTH services. In the print media,
newspapers and periodicals have to be registered with the Registrar of
Newspapers for India (RNI) and editorial issues are dealt with by the Press Council
of India (a body which is independent from the government but has statutory
powers).
Broadcast Services Regulation Bill

The biggest change in media regulation is likely with the Broadcast Services
Regulation Bill. It is currently being debated in the Indian Parliament, but may get
passed in early 2007. Its key elements are:
Launch of a broadcast regulator (Broadcast Regulatory Authority of India)
to regulate the broadcast market.
Implement cross-media ownership rules. Rules to prevent cross-sector
(print/television/radio) and geographic concentration.
Set minimum levels for domestically-originated content on television.
Currently, it is proposed that 15% of content must be produced in India.
Set minimum obligations on ‘public service content’ on advertising and
programming on all channels. Currently, it is proposed that 10% of air time
must be set aside for public service broadcasts (as specified by the
government).
Certain national and international sporting events will have to be made
available to the public service television and radio broadcasters.
Foreign investment rules

Responsibility for administering foreign investment policies falls to three
government bodies: Reserve Bank of India (India’s central bank); Foreign
Investment Promotion Board (FIPB); and Securities and Exchange Board of India
(SEBI), which regulates India’s capital markets.
For many sectors, foreign direct investment (FDI) is allowed without prior
governmental approval; this route is known as the “automatic route.” Investment in
both print and broadcast media does not qualify for this route and requires prior
approval from the FIPB. The FIPB grants approvals on a case by case basis,
usually within a 6-8 week period. However, it is common with most media, to apply
to the Ministry of Information and Broadcasting (MIB) for approval; once this is
obtained, FIPB approval is a relative formality.

Page 52 of 260
Indian media market
Figure 34) Foreign investment rules in media

Sector Ownership cap Notes
Scientific and technical journals 100% Application must be made to the MIB. Once they have reviewed and accepted the proposal,
further approval from the FIPB and RBI is automatically given.
News and current affairs 26% For newspapers and periodicals with news and current affairs content, MIB approval is
(newspapers and periodicals) required.
The MIB sets a number of safeguards; these include verifying the credentials of the investor;
ensuring that editorial and operational control remains with resident Indians (including 75% of
all key executive and editorial roles); requiring 51% of the (active) equity to be held by an
Indian.
In addition to this, there are rules regarding how the investment is made (for example, 50% of
it must be through new equity).
Television content production, media 100% No restrictions. Regulation of content may change with the establishment of a Broadcast
rights and marketing services Content Regulatory Authority (currently it is self-regulated).
Cable TV 49% 51% of equity (paid up share capital) must be held by Indians.
News and current affairs (television) 26% Similar process to news and current affairs (print media).
Changes to key management personnel or the foreign shareholding require government
approval.
DTH 49% (26% for The 49% cap includes FII investment too. Editorial and management control must be with
direct FDI) resident Indians. Some cross-media ownership restrictions.
Foreign owned channels can be included in a DTH service.
Radio 20% Editorial and operational control remains with resident Indians.
51% of the equity to be held by a resident Indian .

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Indian media market
G. Internet penetration and usage
In India today, there are approximately 25 million active Internet users and 8.1
million Internet subscribers. Home, work and Internet cafes are the three most
common methods of Internet access.
Figure 35) Number of active Internet users13
25
21
No. of active Internet users (millions)
20
15
11
10
7
5 4
2
-
2000 2001 2002 2003 2004
The state-owned telecoms operator Videsh Sanchar Nigam Limited (VSNL)

launched Internet services provision in India in 1995 and remained the monopoly
ISP for the next 4 years. In late 1998, the government liberalised the ISP market
issuing licences to private operators. In September 2006, India had approximately
8.1 million Internet subscribers, with the incumbent telecoms operators, BSNL and
14
MTNL accounting for 50% of the market.
15
Figure 36) Internet subscribers
Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06
BSNL 1,679 1,839 2,017 2,262 2,597 2,929 3,320 3,550

MTNL 949 1,012 1,111 1,207 1,314 984 1,485 1,536
Sify 772 812 846 856 877 898 912 868
VSNL 935 703 641 509 467 556 472 451
Bharti Infotel - 129 155 193 313 392 442 524
Reliance - 247 284 310 340 360 397 440
Data Infosys 248 222 231 246 245 246 101 104
YOU Telecom - 86 96 104 111 117 123 128
Hathway Cable - 41 41 50 57 62 69 95
Total 4,583 5,554 5,892 6,125 6,703 6,935 7,709 8,080

% Change 21.2% 6.1% 4.0% 9.4% 3.5% 11.2% 4.8%
% yr – yr growth 46.3% 24.9% 30.8% 31.9%
© Heernet ventures limited 2005

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Indian media market
Broadband growth
Broadband subscribers (typically a download speed of up to 250 kbps), account for
approximately 19% of all subscribers (1.557 million subscribers); the Broadband
share has grown from 2% in 2003.
Broadband access is typically 3 times as expensive as dial-up and is only more

cost effective for high usage customers.
Figure 37) Internet subscription pricing

Service Cost (2006)
Access at an Internet cafe Rs 5 – 15 per hour
Dial-up subcription (assume 3 hours per month

peak time usage) Rs 72 / mth (in Mumbai and Delhi)
Rs 47 (Rest of India)
Broadband subscription Rs 199 / mth (in Mumbai and Delhi)

Rs 250 (Rest of India)
Plus hourly charge of Rs 4 - 6
Growth of Internet access in small towns

Internet usage is growing more rapidly in towns and small cities than in India’s
metros. Small towns now account for a third of Internet users compared to one fifth
in 2001.
Cable services
As Cable TV operators invest in their networks and in Conditional Access
technology, they are likely to offer an alternative to Broadband access via DSL. At
present, cable only accounts for 5% of subscribers (with DSL accounting for 90%).

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Indian media market
H.Telecoms environment
Introduction
The Indian telecommunications market has undergone a major transformation in
the past twenty years. The key changes have been the transition from a state-
owned sector to one with a large number of private sector players and the
emergence of mobile telephony. Prior to market liberalisation, the fixed line
telecoms sector was unreliable and consumers had to wait for very long periods to
get a connection. The emergence of mobile telephony allowed very rapid growth in
telecoms penetration in a short space of time.
The telecoms sector (including telephone directories) is regulated by the
Department of Telecoms (DOT) and the Telecoms Regulatory Authority of India
(TRAI).
2007 January. TRAI cuts mobile roaming charges by 56%.

DOT is reviewing TRAI recommendations on 3G networks
2006 September: TRAI issues consultation paper on introduction of 3G
services in India recommends licence auction process.
1999 The third phase of reforms began with the announcement of the
onwards New Telecom Policy (NTP) in 1999. This policy was aimed to bring
in full competition through unrestricted entry of private players in all
service sectors.
The opening up of International Long Distance (ILD) and National
Long Distance (NLD) services to the private sector.
1991 Government liberalised the manufacture of telecom equipment.
onwards
In 1994, basic telephony services were liberalised with operating
licenses granted to six companies.
The introduction of the National Telecom Policy in 1994 was also
part of the second phase.
Mid 1990s saw the launch of mobile phone services.
In 1997, Telecoms Regulatory Authority of India established.
In 1998, Internet service provision was liberalised.

Page 56 of 260
Indian media market
Market structure
The Indian market has three common forms of telecoms usage: mobile, fixed and
PCOs (kiosks where users can make calls). By fare the greatest market growth
has been in the mobile telecoms segment.
Figure 38) Key statistics, telecoms market

Number of subscribers September 2006 (millions)
Mobile 129.54
Fixed line 40.477
Public call offices 5.142
Fixed line
Domestic fixed line telephony in India has traditionally been run and maintained by
the state-owned operators, BSNL and MTNL. In 2001, fixed-line telephone
business was opened to an unlimited number of operators in each of the 21
telecom regions. Prior to this, only one private company had been allowed to
compete with an existing state-run player in each region. Also VSNL lost its
monopoly for international telephony services in April 2002.
India continues to have one of the lowest telephone penetration ratios in the world.
At present, fixed line services are provided by 5 licensed private operators in
addition to the incumbent operators BSNL and MTNL. The incumbents continue to
have over 85% market share. The latest market data (from December 2006)
suggests that the number of fixed line subcribers is declining.
16
Figure 39) Major fixed line telecoms operators
Service Provider Key geographic focus Number of subscribe (Rs
millions) (Sept 2006)
BSNL All India except Delhi & Mumbai 33.97

MTNL Delhi & Mumbai 3.72
Tata/Hughes Maharashtra, Mumbai, Andhra Pradesh, 0.87
Tamil Nadu, Chennai, Karnataka, Gujarat,
Delhi, Bihar, Orissa, Rajasthan
Bharti Madhya Pradesh, Delhi, Haryana, Tamil 1.63
Nadu, Chennai, Karnataka,
Reliance Andhra Pradesh, Bihar, Delhi, Gujarat, 0.39
Haryana, Himachal Pradesh, Karnataka,
Kerala, Madhya Pradesh, Maharashtra,
Mumbai, Orissa, Punjab, Rajasthan, Tamil
Nadu, Chennai, Uttar Pradesh, West Bengal,
Kolkata
HFCL Punjab 0.17
Shyam Rajasthan 0.15
Total 40.48

Page 57 of 260
Indian media market
Mobile services
Mobile services started in the four major cities of Delhi, Mumbai, Kolkata and
Chennai in 1995 and in other areas in late 1996. After a relatively slow start, the
number of mobile subscribers has been growing rapidly in recent years with
increasingly low tariffs and better quality service. The mobile market has increased
from 1.2 million subscribers as of March 1999 to 129 million subscribers in
September 2006. Net growth in December 2006 was approximately 6 million
subscribers per month.
Unlike many other countries, Indian mobile services operate on all three underlying
technologies (GSM, CDMA and WLL). The GSM services account for 70% of
subscribers and CDMA for 24% of subscribers.
Figure 40) Market shares of GSM operators
Others
14%
Bharti
30%
Idea
11%
Hutch
22% BSNL
23%
Most mobile customers are pre-pay customers using charge cards to recharge their
accounts. In the last eighteen months, operators have reduced the amount of pre-
paid charge that subscribers have to purchase; this has further reduced the barriers
to entry for mobile customers.
17
Figure 41) Growth in number of mobile subscribers
140
129.54
120
No. of subscribers (millions)
100
75.94
80
60
33.69
40
13.00
20
3.58 6.54
1.90
0
2000 2001 2002 2003 2004 2005 2006
The mobile operators provide a range of directory services to their own customers;
for individual listings, they only provide their own customers’ numbers as there is
no unified database.

Page 58 of 260
Indian media market

Page 59 of 260
Indian media market
18
Figure 42) Major mobile telecoms operators
Service Key geographic focus Number of
provider subscribe (Rs
millions) (Sept
2006)
Bharti Delhi, Mumbai, Chennai, Kolkata, Maharashtra, Gujarat, 27.06

Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Punjab,
Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh,
West Bengal, Himachal Pradesh, Orissa, Jammu &
Kashmir
Reliance Delhi, Mumbai, Chennai, Kolkata, Maharashtra, Gujarat, 25.98
Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Punjab,
West Bengal, Himachal Pradesh, Bihar, Orissa, Assam,
North East
BSNL Chennai, Kolkata, Maharashtra, Gujarat, Andhra 23.70
Pradesh, Karnataka, Tamil Nadu, Kerala, Punjab,
West Bengal, Himachal Pradesh, Bihar, Orissa, Assam,
North East, Jammu & Kashmir
Hutch Delhi, Mumbai, Chennai, Kolkata, Gujarat, Andhra 20.36
Pradesh, Karnataka, Punjab, Haryana, Uttar Pradesh,
Rajasthan, West Bengal
Idea Delhi, Maharashtra, Gujarat, Andhra Pradesh, Kerala, 10.36
Haryana, Uttar Pradesh, Madhya Pradesh
BPL Mumbai, Maharashtra, Tamil Nadu, Kerala 1.05
Spice Karnataka, Punjab, 2.20
Tata/Hughes Delhi, Mumbai, Chennai, Maharashtra, Gujarat, Andhra 12.38
(TTSL) Pradesh, Karnataka, Tamil Nadu, Rajasthan, Bihar,
Orissa
MTNL Delhi, Mumbai 2.43
HFCL Punjab 0.15
Shyam Rajasthan 0.08
Aircel 3.80
Others -
Total 129.54

Page 60 of 260
Indian media market
Public Call Offices (PCOs)

PCOs are a common site in India, providing people with basic telephone services.
They typically consist of a number of booths where individuals can make calls
which are charged on a time usage basis. In the 1980s, private companies were
given the opportunity to operate PCO franchises. Today, there are 5.15 million
PCOs in India with the majority operated as franchises of the incumbent telecoms
operator, BSNL; most will have a print copy of the local telephone directory.
19
Figure 43) Major PCO operators
Service Key geographic focus Number of PCOs (Sept
Provider 2006)
BSNL All India 2,102,666

MTNL Delhi & Mumbai 263,461
Bharti Madhya Pradesh, Delhi, Haryana, Tamil Nadu 264,713
including Chennai, Karnataka
HFCL Punjab 44,249
Tata Maharashtra, Mumbai, Andhra Pradesh, Tamil 1,097,804
Nadu, Chennai, Gujarat, Karnataka, Delhi
Reliance Andhra Pradesh, Bihar, Delhi, Gujarat, 1,335,119
Haryana, Himachal Pradesh, Karnataka,
Kerala, Madhya Pradesh, Maharashtra,
Mumbai, Orissa, Punjab, Rajasthan, Tamil
Nadu, Chennai, Uttar Pradesh, West Bengal,
Kolkata
Shyam Rajasthan 41,698
Total 5,149,710

Page 61 of 260
Indian media market
IV) COUNTRY PROFILE

Page 62 of 260
Indian media market
A.Overview
India is a democratic republic with a population of 1.1 billion. Historically, India was
a collection of kingdoms and empires, with modern India taking shape under British
th
rule which started in the 18 Century and ended in 1947. Another consequence of
British rule is the fact that a substantial portion of India’s political and legal
institutions are modeled on British law. The table below gives a comparison of
India against other key emerging economies.
Figure 44) Key statistics on the BRIC economies20
India Brazil China Russia
Local currency Rupees Real Rembini Roubles
Population (millions) 1,095 186 1,315 142

GDP at market prices (Local curr bn) 39,771.8 2,062.1 21,330.0 26,934.0
GDP (US$ bn) 876 947 2,676 986
Real GDP growth 8.7% 2.9% 10.5% 6.6%
GDP per capita (US$, 2005) 799.9 5,077.8 2,034.9 6,929.0

GDP per head (Local curr, 2005) 28,895 4,320 14,279 151,059
% growth 7% 0.8% 9.2% 6.8%
GDP (by origin)

Agriculture 19.0% 8.0% 18.5% 5.6%
Industry 27.4% 37.9% 81.5%* 3.8%
Manufacturing 15.9% 54.1%
Services 53.6% 56.4%
Other 0.0%
* For all of industry, services and manufacturing
India is a union of 28 states and 7 union territories. The power of individual states
has been increasing throughout the 1990s, with states now managing up to 90% of
spending in key areas such as health, education and irrigation.

Page 63 of 260
Indian media market
Figure 45) Map of India, Major cities
21
Figure 46) Map of India, States by language

Page 64 of 260
Indian media market
B.Economic profile
The 1990s started a transition in India which has led to greater openness,
transparency and competition both politically and economically. Economic growth
surged to an unprecedented 7% during the mid 1990s and has held at around 6%-
8% per annum. The economy has also become much more integrated with the
world economy with both imports and exports increasing significantly. Key drivers
of economic growth in the 1990s were:
Reductions in import/export tariffs.
Streamlining of procedures for foreign direct investment.
Deregulation of the financial sector.
Growth of the export-orientated IT and business outsourcing sectors.
Increasing literacy and urbanisation (and a growing middle class).
Relatively stable government.
22
Figure 47) Key macro-economic indicators
% growth 2005 2006 2007 2008 2009 2010
GDP 8.5% 7.6% 7.4% 7.2% 6.9% 6.9%

Private consumption 6.6% 6.9% 6.3% 6.1% 6.1% 6%
Government consumption 8% 8% 7% 6.5% 6% 6%
Gross domestic investment 10% 9.5% 9% 9.5% 10% 10%
Exports of goods & services 22.3% 18.4% 14.6% 13.3% 12.1% 12.2%
Imports of goods & services 19% 13.3% 11.8% 12.2% 12.7% 12.7%
Natural resources and power generation

India is not rich in natural resouces such as oil and gas (coal is the most abundant
resource). India’s other main mineral resources are iron ore and bauxite (for
aluminium production).
The country is planning significant investment in nuclear power and in building
distribution capability (ports, pipelines and storage facilities) to import more oil and
gas.
Transport infrastructure
India’s transport infrastructure has suffered from a lack of investment, but there is
now a strong political impetus to remedy the problem. There are significant road
building, airport construction and port investment programmes underway. The
domestic airline industry is the fastest growing in the world. A key step in this
process has been the removal of restrictions on foreign direct investment in a
number of these areas (e.g. ports, roads).

Page 65 of 260
Indian media market
Foreign investment
Growth in foreign direct investment (FDI) has been significant through the 1990s
but is still well below that of other comparable countries as a percentage of GDP.
In 2001, 1,590 FDIs were approved for a total value of Rs 230.6 billion (€4.3 billion)
compared to 289 approvals in 1991 for Rs 5.340 billion (€97 million). However, FDI
still accounts for less than 1% of India’s GDP compared to over 4.3% in China.
In terms of sector focus, the key areas for foreign direct investment are power,
transportation and telecoms. These are the sectors where the government sees
the greatest need for long term infrastructure investment. However, in the coming
years, retail and distribution and logistics will grow in importance as targets of FDI.
23
Figure 48) Foreign direct investment by sector (1991-2004)
Sector % of total FDI inflow
Electrical equipment 14.83

Transportation industry 11.56
Telecommunications 11.08
Power (including oil) 9.97
Services sector 8.37
Chemicals (other than fertilizers) 5.74
Food processing industries 4.43
Metallurgical industries 1.76
Paper & Pulp 1.27
Hotel & Tourism 0.97
Other 30.02

Page 66 of 260
Indian media market
Labour market
A key objective of government policy has been to provide increased employment
opportunities for India’s growing population.
24
Figure 49) Population analysis
Measure Male Female Total
Population 531 496 1027

- Rural 381 361 742
- Urban 150 135 285
Aged 6 or below 82 76 158
Literacy 340 227 567
India has a labour force of 406 million of which 397 million are in employment. Of
these only 28 million are in organised sector employment – mostly in the public
sector.
25
Figure 50) Labour force statistics
% Annual growth rates
Sector 1999-00 1983-94 1994-00
Total population 1,004.1 2.12 1.93

Labour force 406.05 2.05 1.03
Employed 397 2.04 .98
Organised sector employment 28.11 1.20 .53

Public sector 19.41 1.52 -.03
Private sector 8.7 0.45 1.87
Analysing the Indian labour market by sector illustrates the increasing urbanisation
and industrialisation that occurred during the 1990s. Agriculture experienced a
decline in employment, whilst sectors such as finance, trade and transport grew
strongly.
26
Figure 51) Labour force by sector (2001)
Millions % Annual growth rates
Sector 1999-00 1983-94 1994-00
Agriculture 237.56 1.51 -.34

Mining & quarrying 2.27 4.16 -2.85
Manufacturing 48.01 2.14 2.05
Utilities 1.28 4.5 -.88
Construction 17.62 5.32 7.09
Trade 37.32 3.57 5.04
Transport, storage and Comms. 14.69 3.24 6.04
Financial services 5.05 7.18 6.2
Community services 33.20 2.9 .55

Page 67 of 260
Indian media market
Regional differences
India is an extremely diverse country in terms of language, culture and economic
strength. From an economic perspective, India’s southern states have been the
engine of the services sector over the last decade; this has partly been due to a
greater government emphasis on improving education and literacy rates.
Figure 52) Regional GDP per capita and population analysis
State Population (000s) Rs per capita
Chandigarh 901 65,865

Goa 1,348 62,478
Delhi 13,851 55,728
Pondicherry 974 53,462
Haryana 21,145 30,887
Andaman Islands 356 30,886
Maharashtra 96,879 30,347
Punjab 24,359 29,674
Gujarat 50,671 28,134
Kerala 31,841 28,093
Tamil Nadu 62,406 26,790
Himachal Pradesh 6,078 26,379
Mizoram 889 25,884
Sikkim 541 25,423
Andhra Pradesh 76,210 24,029
Nagaland 1,990 23,618
West Bengal 80,176 22,451
Karnataka 52,851 22,389
Tripura 3,199 21,880
Uttaranchal 8,489 18,847
Meghalaya 2,319 18,755
Arunachal Pradesh 1,098 17,951
Manipur 2,167 16,481
Jammu & Kashmir 10,144 16,362
Rajasthan 56,507 16,341
Madhya Pradesh 60,348 15,751
Chattisgarh 20,834 15,552
Assam 26,656 14,490
Jharkand 26,946 13,791
Uttar Pradesh 166,198 12,350
Bihar 82,999 6,760
Orissa 36,805 6,687

Page 68 of 260
Indian media market
C. Demographic profile
Socio-economic profile
The last 15 years have seen a significant increase in prosperity in India, but
approximately a third of Indians still live under the poverty line. The middle class is
estimated at approximately 135 million adults (falling into demographic categories
A, B, C, R1 and R2); this group is growing by 30–40 million individuals per annum.
27
Figure 53) Adult population by economic status
Status Definition Millions (2001)
Urban
A High/Intermediate managers/well educated/businessmen with 17.7
large organisations
B Intermediate managers/good education /businessmen /self 32.7
employed with small organisations
C Petty traders /shop owners/ clerks/salesman /supervisors with 40.4
some education
D Poorly educated petty traders/ shop owners/clerks/ salesman 42.7
E Skilled/ unskilled workers 54.9
Rural
R1 Well educated, living in good houses 11
R2 Good education, living in not very good houses 32.7
R3 Some education, living in huts and temporary shelters 158.6
R4 Uneducated, living in temporary shelters 294.8
TOTAL 685.5
Education
Literacy rates have risen rapidly over the last fifty years (for men, from 27% in 1952
to 75.6% in 2001 and for women, from 9% in 1951 to 54% in 2001). However
regional variations are still quite high at a state level (Kerala has a rate of 91% and
Bihar has a rate of 49%). At the tertiary level, India has a large network of both
public and private universities with intense competition for the best colleges.
Healthcare
Healthcare in India is largely a private-based system with access based on ability
to pay. Only 1 in 10 Indians have health insurance and many of these policies do
not provide sufficient cover.

Page 69 of 260
Indian media market
Language and literacy

Across India, 16 major languages and dozens of dialects are spoken with over 40%
of the population speaking Hindi. English is widely spoken among the middle
classes (especially in the major cities) and is the main language for business.
Figure 54) Population by primary language28

Language Primary region % of population
(2001)
Hindi North India 40.2

Bengali West Bengal 8.3
Telugu Andhra Pradesh 7.9
Marathi Maharashtra 7.5
Tamil Tamil Nadu 6.3
Urdu Jammu and Kashmir 5.2
Gujarati Gujarat 4.9
Kannada Karnataka 3.9
Malayalam Kerala 3.6
Oriya Orissa 3.4
Punjabi North west India 2.8
Assamese Assam 1.6
Sindhi North west India 0.3
Nepali North India (Nepalese borders) 0.3
Konkani Goa 0.2
Manipuri Manipur (North east India) 0.2
Other Languages 3.7
In urban areas, literacy rates tend to be higher at 80%-90% (compared to 59% in

rural areas). Literacy rates have been rising rapidly with an average increase of
10-12% each decade since 1951.
29
Figure 55) Population and literacy levels for major states
State (2001 data) Population (Millions) % literacy rate
Kerala 31.8 91.0

Goa 1.3 82.3
Maharashtra 96.7 77.3
Tamil Nadu 62.1 73.5
Gujarat 50.6 70.0
Punjab 24.2 70.0
West Bengal 80.2 69.2
Haryana 21.1 68.6
Karnataka 52.7 67.0
Madhya Pradesh 60.3 64.1
Orissa 36.7 63.6
Andhra Pradesh 75.7 61.1
Rajasthan 56.4 61.0
Uttar Pradesh 166.1 57.4
Bihar 82.9 47.5

Page 70 of 260
Indian media market
Urbanisation
About 72% of India’s population live in rural areas, but the proportion living in urban
areas has been growing rapidly. There are now 35 cities with a population greater
than 1 million, with Mumbai (16.4 million), Kolkata (13.2 million) and Delhi (12.8
million) the three highest.
30
Figure 56) Number of major cities by population (2001)
Number of urban
Class Population size
areas/towns
Class I 100,000 plus 393

Class II 50,000 - 99,999 401
Class III 20,000 - 49,999 1,151
Class IV 10,000 - 19,999 1,344
Class V 5,000 - 9,999 888
Class VI Less than 5,000 191
Unclassified 10
31
Figure 57) Major urban centres of population
Urban area / city State Population (millions)
Greater Mumbai Maharashtra 16.37

Kolkata West Bengal 13.22
Delhi Delhi 12.79
Chennai Tamil Nadu 6.42
Bangalore Karnataka 5.69
Hyderabad Andhra Pradesh 5.53
Ahmedabad Gujarat 4.52
Pune Maharashtra 3.75
Surat Gujarat 2.81
Kanpur Uttar Pradesh 2.69
Jaipur Rajasthan 2.32
Lucknow Uttar Pradesh 2.27
Nagpur Maharashtra 2.12
Patna Bihar 1.71
Indore Madhya Pradesh 1.64
Vadodara Gujarat 1.49
Bhopal Madhya Pradesh 1.45
Coimbatore Tamil Nadu 1.45
Ludhiana Punjab 1.40
Kochi Kerala 1.35
Visakhapatnam Kerala 1.33
Agra Uttar Pradesh 1.32
Varanasi Uttar Pradesh 1.21
Madurai Tamil Nadu 1.19
Meerut Uttar Pradesh 1.17
Nashik Maharashtra 1.15
Jabalpur Madhya Pradesh 1.12
Jamshedpur Bihar 1.10
Asansol West Bengal 1.09
Dhanbad Bihar 1.06
Faridabad Haryana 1.05
Allahabad Uttar Pradesh 1.05
Amritsar Punjab 1.01
Vijaywada Andhra Pradesh 1.01
Rajkot Gujarat 1.00

Page 71 of 260
Indian media market
Consumer culture
Strong economic growth has led to the emergence of a large consumer class in
India. They are able to spend an increasing proportion of their income on non-
essential items; their growing expenditure on media will have a significant impact
on growth in the media sector, particularly in areas such as spend on cinema visits,
Pay TV, entertainment rentals and books and music.
32
Figure 58) Forecast growth in key consumer categories
2004a 2005a 2006e 2007e 2008e 2009e
Retail sales (US$ bn) 324 373 422 471 508 547
% growth 15.0% 13.0% 11.7% 7.9% 7.6%
Clothing (US$ bn) 50.17 60.05 69.23 80.03 88.10 97.09

% growth 19.7% 15.3% 15.6% 10.1% 10.2%
Cosmetics (US$ mn) 343 392 439 484 513 542

% growth 14.3% 12.0% 10.3% 6.0% 5.7%
New passenger car registrations 1,064 1,171 1,328 1,482 1,657 1,853
(000s)
% growth 10.1% 13.4% 11.6% 11.8% 11.8%
Healthcare spending (US$ bn) 34.9 40.4 45.7 52.1 56 60.9

% growth 15.8% 13.1% 14.0% 7.5% 8.7%
Pharmaceutical sales (US$ bn) 4.662 5.334 6.107 6.945 7.658 8.354
% growth 14.4% 14.5% 13.7% 10.3% 9.1%

Page 72 of 260
Indian media market
V) SECTOR PROFILES

Page 73 of 260
Indian media market
A.Television
Key developments and trends

Terrestrial television is well established though penetration is still low (approx.
55%) – even, when compared to developing markets such as China
In recent years, the number of channels has grown significantly, especially in
segments such as news. The quality of content can be poor and there is likely to
be a shakeout in the near future (if there is a downturn in advertising)
Key areas of regulatory impact include: the need for foreign satellite channels to be
licenced; implementation of conditional access systems in Cable TV; and eventual
launch of a broadcast regulator.
Pay TV presents most exciting growth prospects with the launch of DTH services.
But there is significant price competition between major operators.
Cost of premium content (Hindi movies, cricket) continues to rise rapidly.
Prior to the first Gulf War in 1991, the terrestrial public service broadcaster,
Doordarshan was the sole television broadcaster. Commercial television emerged
during the early 1990s with a number of local entrepreneurs launching television
channels broadcast by satellite and disributed at the household level by new local
cable operators. Foreign broadcasters were attracted to the market in the mid
1990s. Early entrants included Star TV and Sony.
Figure 59) Television market statistics

Measure
Number of households:
Television 110 million (growing at 10% p.a.)
Cable 50-60 million (2006)
DTH 2.7 million (mid 2006)
Advertising revenues (2006) Rs 62.2 billion (US$1.4 billion)

Subscription revenues (2006) Rs 90 billion (US$2 billion)
Figure 60) Television market revenues

TV market revenues – by type (2006) TV adspend – by platform (2005e)
Advertising
41%
Terrestrial
39%
Cable and
satellite
Subscription 61%
59%

Page 74 of 260
Indian media market
Today, India’s 110 million television households (of which 50%-55% are cable and
satellite households) have access to over 300 television channels (many of which
are satellite broadcast); a typical cable and satellite household has access to
between 40 and 100 channels.
Figure 61) Major broadcasters

Broadcaster Key channel activities
National and
regional presence
Zee Entertainment and 16 national and 6 regional channels including Zee TV, Zee News, Zee Cinema, Zee
Zee News Music, Zee Punjabi (similar regional language channels in Marathi, Bengali and
Gujurati)
Star TV 15 channels including Star Plus, Star Gold, Star One, Channel [V], Star Utsav, Vijay,
Star World, Star Movies, Star Ananda, Star News, ESPN, Star Sports, The History
Channel, National Geographic Channel, A1
Doordarshan Public sector broadcaster operating 19 channels including 2 national terrestrial

networks and 11 regional channels
Sony Entertainment TV Range of channels including one of the leading national general entertainment
channels
Regional only
Sun TV Commercial broadcaster with focus on South India (Tamil Nadu, Karnataka and
Kerala)
Eenadu TV Focus on Telugu speaking region
Business and news

channels
NDTV Three news channels (NDTV India, NDTV 24X7, NDTV Profit)
TV18 Broadcasts TV18 channel
Global Broadcast News Broadcasts CNN-IBN channel
Times of India Broadcasts Times Now; it is a news channel in which Reuters has a 26% stake.
Figure 62) Television market structure by channel type

TV market – share of viewing (2005) TV market – share of adspend (2005)
Info tainment / kids M usic, co medy, M usic, co medy,

Info tainment / kids
4% lifestyle, fashio n lifestyle, fashio n
3%
3%
Spo rts 2%
Spo rts
8% 9%
English English
1% General 4%
34% General
Hindi films Hindi films 39%
8% 6%
News
7% News
12%
Regio nal languages

Regio nal languages 24%
36%

Page 75 of 260
Indian media market
In addition to the public service broadcaster, there are three major broadcasters
with national coverage, Zee Entertainment, Sony Entertainment and Star TV
(subsidiary of News Corporation).
Star TV’s channels have a cumulative audience share of approximately 40% (its
33
leading channel Star Plus captures audience share of 18%) ; the leading Zee and
Sony channels each capture approximately 10% audience share.
Figure 63) GRPs of major commercial broadcasters
Zee TV 232
Sony
129
Entertainm ent TV
Star Plus 492
- 100 200 300 400 500 600

GRPs (2006)

Page 76 of 260
Indian media market
Regional channels
In recent years, there has been strong growth in regional language channels.
These channels capture a smaller share of adspend as they typically attract an
audience with a lower socio-economic profile (compared to English language
channels).
Figure 64) Audience shares for leading regional channels

Marathi channels (2006) Bengali channels (2006)
DD7 Bangla
6% Akhon
ETV Marathi 0%
Zee Marathi
43%
47% Zee Bangla
28%
ETV Bangla
53%
DD10
Sahyadri
10% Aakaash
13%
Punjabi channels (Q1 2006) Gujarati channels (Q1 2006)
DD Punjabi
6%
Balle balle DD11 Gujarati
8% 16%
Zee Punjabi
13%
ETC Punjabi
51%
Zee Gujarati
21%
ETV Gujarati
MH1 63%
22%
Telugu channels (Q1 2006) Kannada channels (Q1 2006)
Others, 7%
ETV New s Vissa Others Udaya New s,
Adithya
3% 1% 12% 1%
3% ETV Kannada,
DD DD, 4% 24%
Gemini TV
1% 31% U2, 6%
TV9
3%
Teja New s Ushe, 17%
1%
Zee Telugu Maa
4% 8% Teja TV Zee Kannada,
Eenadu TV 18% 4% Udaya TV, 37%
15%

Page 77 of 260
Indian media market
News channels
The current affairs and business news channels segment is very competitive with a
large number of Hindi and English language channels.
Figure 65) Audience shares for news channels

News channels (2006) Business channels (2006)
India TV Janmat
Star New s
8% 2%
TEZ 17% Zee
4% NDTV Profit Business
27% 12%
CNN-IBN
7% Zee New s
12%
NDTV 24*7
12% Aw aaz
32%
Sahara Samay
6% Aaj Tak
17% CNBC TV18
DD New s 29%
NDTV India
3%
12%

Page 78 of 260
Indian media market
Pay television
Pay TV emerged in the mid 1990s with the growth of cable television networks in
the large cities. These networks were relatively primitive with no encryption or
addressability and a typical cable TV household paying a monthly subscription of
Rs 200-300.
Figure 66) Structure of cable market
Implementation of conditional access systems (CAS) in Cable TV

To date, there has been a lack of an effective regulatory or licencing regime for
cable operators and this has led to the emergence of a highly fragmented,
unorganised industry. The industry has developed with a three tier structure: multi-
multi
system operators (MSOs) who have significant coverage in major cities; local cable
operators (LCOs) who take a content feed from MSOs and may distribute to an
area ranging from a single street to a town; and independent cable operators
(ICOs) who typically take a feed directly from channel operators. Generally
subscribers have had a relatively poor service, with little choice of service provider
and frequent price increases.
increase
The lack of addressability of households and the highly fragmented nature of the
local cable market means that information on subscriber numbers tends to be
inaccurate and there is significant under-reporting
under reporting of revenues by LCOs and ICOs;
the choices of which channels to carry is often based on back room negotiations
and the level of carriage fees the channel operator is willing to pay.

Page 79 of 260
Indian media market
Figure 67) Major cable operators

No. of
Cable operator Owned by Key markets
subscribers
Wire & Wireless Zee Telefilms 6.7 million Delhi, Mumbai, Kolkata, Bangalore,
India Limited Andhra Pradesh, Madhya Pradesh and
(Siticable) North India
Hathaway Cable Raheja group 5 million Mumbai, Delhi, Chennai, Pune and
Kerala
(Star TV has a 26%
stake in HC)
InDigital Hinduja Group 3 million Mumbai, Delhi and Bangalore
Sumangali Cable Sun TV 1.5 million Tamil Nadu
Vision
Ortel Ortel 500,000 Orissa
Communications
The Indian regulator, TRAI formulated a policy in 2003 to introduce Conditional

Access Systems (CAS) in order to enhance consumer choice and reduce under-
declaration of revenues (this impacts the government as it charges an
entertainment tax on cable revenues). The CAS policy required cable operators to
invest in infrastructure and develop set top boxes with addressability and channel
operators were required to encrypt their pay channels.
The implementation of the policy had been held up by a series of legal challenges
and disagreements between broadcasters and cable operators. However, with the
launch of competing DTH services, the climate has changed and in May 2006, the
Indian High Court ordered the government to implement the CAS policy following a
legal petition from a leading cable operator, Hathway Cable. All cable operators
are now marketing CAS-enabled set top boxes.
The Indian regulator, TRAI has mandated a revenue sharing agreement between
MSOs, LCOs and channel operators. LCOs keep 100% of the basic subscription
fee of Rs 77 per month and for encryoted channels, the revenue is shared among
broadcasters, MSOs and cable operators in the ratio of 45%, 30% and 25%,
respectively.
Launch of DTH
The first launch of DTH services was by the media entreprenuer, Subash Chandra
in late 2003 and by end 2006, its service, Dish TV had 1.7 million subscribers. Star
TV launched its DTH service, Tata Sky in a joint venture with India’s Tata group.
The other major players expected to launch a DTH offering are the Indian group
Reliance Infocomm (it is one of India’s leading telecoms operators) and the south
Indian television broadcaster Sun TV. There is strong evidence that, in the short
term, operators will primarily compete on price.

Page 80 of 260
Indian media market
Figure 68) DTH platforms

DTH platform Owned by Launch No. of Notes
subscribers
Dish TV Zee Telefilms October 1.7 million 150 channels

2003 65% of subscribers are in
rural areas
DD Direct Doordarshan September 3.5 million Free to air service (charge of
2004 Rs 2,100 to purchase set top
box)
Tata Sky Tata Group, August 2006 ~ 500,000 60 channels.
Star TV
Blue Sky Magic Reliance - 2007 n.a.
ADAG
Sun Direct TV Sun TV 2007 n.a. Focused on southern states
with local language content
The Indian regulator has confirmed that all channel operators must make their
channels available on a non-discriminatory basis to all DTH platforms. This has
eliminated the opportunity for DTH platform operators to compete on the basis of
exclusive content and will increase the importance of price as a key market
differentiator.
Foreign investment
The rules regarding governing foreign investment in television have gone through a
number of revisions and reinterpretation in the last five years.
Figure 69) Key foreign direct investment rules
Sector FDI Cap Notes
Satellite 49% For television channels uplinking from India provided that
broadcasting they meet the regulator’s programme and advertising code.
Cable networks 49% 51% must be held by Indian citizens
News channels 26%
DTH services 20% Foreign investment of up to 49% is allowed (when financial

investment and non-resident Indian investment is included)
Terrestrial - No private operators allowed

television

Page 81 of 260
Indian media market
The mid 1990s saw the first major foreign investment in television when the private
equity group Warburg Pincus made an investment in the Indian television
production company, UTV.
Figure 70) Key foreign investments in television

investor
Sep-06 USA Walt Disney Hungama TV (UTV) UTV divested kids channel.
Aug-05 UK 3i Nimbus Communications Television sports and entertainment
production company. Acquired 33%
stake for Rs 2 billion
Jun-05 USA CNBC Asia Television Eighteen CNBC had 51% stake in news
channel joint venture with TV-18
(has reduced stake to 10% in 2004)
Jan-05 USA Star TV Balaji Telefilms Acquired 26% stake
Apr-05 UK Reuters Times of India Reuters acquired a 26% stake in a
the Times Now English news
channel
Sep-02 USA GE Capital TV Today Network Acquired 6.2% stake
Jul-02 Singapore CDP Asia Sony Entertainment TV Acquired 10% stake for US$100
million
May-02 USA Discovery Sony Entertainment Discovery acquired a 26% stake in a
Communications Television new channels’ venture with Sony.
Apr-02 Singapore CDP Asia UTV Group Acquired 31% stake (exited in 2004)
Dec-01 USA Time Warner Zee Telefilms Time Warner acquired a 26% stake
in a new channels’ venture with Zee.
Sep-00 USA Star TV Hathway Cable Acquired 26% stake.
Apr-00 USA Intel Capital IndusInd Media & Acquired 3.5% stake in the Hinduja
Communications Group’s Cable TV operations

Page 82 of 260
Indian media market
B.Newspapers

Circulation is growing (especially for local language newspapers). Adspend is acheiving
double digit growth
Suffered from lack of investment during the television boom years of the 1990s.
Significant ‘price-based’ competition in major cities (recent launch of Hindustan Times in
Mumbai), especially among English language and business titles.
Some foreign investment in last two years (Wall Street Journal, Independent News &
Media)
The Indian newspaper sector has a long and vibrant history with many
newspapers well into their second century of publication; many of India’s
leading media companies have their origins in the newspaper business. In
recent years, the sector has experienced strong competition from television
and has suffered from a lack of editorial investment and fierce cover price
competition.
Approximately 1,900 daily newspapers are published of which half are in
regional languages and of the remainder 42% are in Hindi and 8% in English.
Revenue figures vary by source (Adex, ZenithOptimedia, PWC); our estimate
for advertising revenues in 2006 is Rs 65 billion (US$1.45 billion) with
circulation revenues at Rs 22 billion (US$490 million).
Figure 71) Estimated newspaper adspend
120,000
104,105
100,000
90,478
81,643
80,000
Rs millions
65,370
60,000 54,120
47,073
40,000
29,069 29,178 30,432
20,000
-
2000 2001 2002 2003 2004 2005 2006 2007 2008
Note: based on average of three sources (Adex, PWC, ZenithOptimedia)

Page 83 of 260
Indian media market
Classified advertising accounts for approximately 15% of newspaper

adspend.
Figure 72) Newspaper adspend by type (2006)
Other
15%
Classifieds
Display
15%
advertising
50%
Government
20%
Circulation and readership

Newspaper readership in India is still much lower than in many other
countries; this is primarily due to a relatively low literacy rate of 71% and poor
distribution in rural areas. The sector can expect strong volume (readership,
circulation) growth in the long term.
34
Figure 73) Weekly reach of newspapers
90%
80% 76.2%
70.7%
% Reach of adult population (2005)
70%
63.9% 64.8%
60%
50%
40% 35.9%
30%
21.3%
20%
11.2%
10% 5.4%
1.0%
0%
National dailies Regional dailies Any daily newspaper
India China Germany
In 2006, the daily reach of newspapers grew by 6.6% to 203 million people.
Intense competition between newspapers has held down cover prices to a
minimal level (Rs 1 – Rs 5). This will also have helped to increase circulation
and reach.

Page 84 of 260
Indian media market

Page 85 of 260
Indian media market
Figure 74) Circulation growth (1996 – 2005)
90,000,000 30%
80,000,000
25%
70,000,000
20%
Daily circulation
60,000,000
% change
50,000,000 15%
40,000,000 10%
30,000,000
5%
20,000,000
0%
10,000,000
- -5%
1995 1996 1997 1998 1999 2000 2001 2002/03 2003/04 2004/05
Circulation % change
Figure 75) Readership of leading newspapers
Readership ('000's) Language 2005 2006 % Change
Dainik Jagran Hindi 21,244 21,165 -0.4%

Dainik Bhaskar Hindi 17,379 20,958 20.6%
Eenadu Telugu 11,350 13,805 21.6%
Lokmat Marathi 8,820 10,856 23.1%
Amar Ujala Hindi 10,469 10,847 3.6%
Hindustan Hindi 10,557 10,437 -1.1%
Daily Thanthi Tamil 9,445 10,389 10.0%
Dinakaran Tamil 1,485 9,639 549.1%
Rajasthan Patrika Hindi 8,651 9,391 8.6%
Malayala Manorama Malayalam 7,985 8,409 5.3%
Times of India English 8,092 7,502 -7.3%
Mathrubhumi Malayalam 6,412 7,415 15.6%
Ananda Bazar Patrika Bengali 7,215 7,295 1.1%
Gujarat Samachar Gujarati 6,780 6,416 -5.4%
Punjab Kesari Punjabi 4,427 6,302 42.4%
Dinamalar Tamil 4,877 5,977 22.6%
Divya Bhaskar Gujarati 5,162 5,490 6.4%
Sakal Marathi 4,191 5,066 20.9%
Newspaper publishers can be divided into those with a strong national reach
and those with a regional focus. National players tend to focus on Hindi and
English language publications and business newspapers. Leading groups
include the Times of India group, Business Standard, The Hindu group and
Hindustan Times Media. Regional groups tend to publish in vernacular
languages and have a strong local franchise; leading regional players include
the Deccan Chronicle group and the Malaya Manorama group.
English language newspapers capture half of all newspaper adspend
compared to only 14% of readership. This is due to their audience profile
which is typically wealthier than that of Hindi and local language newspapers.

Page 86 of 260
Indian media market
Figure 76) Market shares by newspaper language

Readership Adspend
Others
26%
Hindi
43% English
Others
43% 49%
Hindi
25%
English
14%
Foreign investment
The rules governing foreign direct investment in print media were relaxed in
2002; foreign direct investment of up to 26% is now allowed in newspaper
businesses. Since then there have been a number of substantial
investments by both trade and financial investors.
Figure 77) Key foreign investments in newspapers

Date Investor Investee Notes
2007 Dow Jones HT Media Joint launch of Mint Newspaper.

20% of content sourced from Wall Street
Journal (no equity investment)
2004 Independent News Dainik Jagran Publisher of the Hindi language paper, Dainik
and Media (INM) Jagran
26% stake acquired by INM
2004 Dow Jones & Co. Times of India DJ acquired a 26% stake in a joint ventures
with Times of India to publish an Indian
version of the Wall Street Journal.
2004 Citicorp HT Media Acquired 8.3% stake for Rs 690 million.
2003 Henderson Capital HT Media Acquired 15.4% stake for Rs 1 billion.
2003 Financial Times Business Standard Business Standard is a leading English
language business newspaper.
14% stake acquired by Pearson (FT’s parent)
In June 2005, the Indian government also lifted the ban on the printing of
foreign newspapers in India. The ban was an anomaly as foreign
newspapers could be sold in India but not printed. It was challenged by the
International Herald and Tribune (part of the New York Times group) which
began printing in Hyderabad. In January 2007, HT Media launched a
business newspaper in partnership with the Wall Street Journal.

Page 87 of 260
Indian media market
C.Radio

Immature market with strong long term growth potential. Licencing rules in the first wave of
licencing created major problems with many licence winners unable to pay fees.
Phase 2 of commercial FM licencing was successfully handled and the sector looks in a healthy
state.
Significant competition exists in major cities (but overall market growth is also substantial).
Foreign investment is limited to 20%
The three major segments of the Indian radio market are: the public service
broadcaster, All India Radio; the commercial players who broadcast on FM; and the
satellite radio broadcaster, Worldspace.
The commercial radio market emerged in the late 1990s and by 2006 was worth
approximately Rs 4.2 billion (US$95 million). The last twelve months have seen
the launch of many new local FM radio stations in both the major metros and small
cities across India. Growth prospects for the sector are extremely good as the
industry is still immature in terms of content, reach and share of adspend.
The rapid growth in the number of new stations has meant that competition for both
audiences and advertisers is extremely intense. Many of the new entrants to the
radio sector have extensive media assets in areas such as television, film and
publishing; this has meant that they have been able to utilise their existing media to
promote their new stations.
Radio licencing and regulation

Whilst public sector broadcasting began in the 1920s, commercial radio was only
liberalised during the late 1990s with the licencing of FM radio. The first phase of
FM licencing (Phase 1) occurred in 1998/99 with a second phase (Phase 2) in late
2005; a third phase due in late 2006 has been delayed.
The Phase 1 licencing regime was based on a licencee paying an upfront fee and
an ongoing fixed annual fee with the highest bidder winning the licence. This
approach led to bidders making unrealistic bids and as a result, many stations were
never launched. Oof the 108 licences available, 40 were awarded and 21 actually
started broadcasting.
A review of the licencing approach led to a change in methodology for Phase 2.
Bidders submitted bids on the basis of a one time entry fee (OTEF) and a
“percentage” share of actual revenues (approximately 4% of annual revenues). For
Phase 2, 245 licences were allocated to 38 broadcasters across 87 cities. The
licencing process generated Rs 8,955 million in fees for the Indian government.

Page 88 of 260
Indian media market
Figure 78) Phase II licencees

One Time Entry
Company No. of licences
Fee (Rs millions)
Adlabs Films 1,603 45

Entertainment Network (India) 1,301 25
South Asia FM 757 22
Kal Radio 991 18
Synergy Media Entertainment 512 17
Music Broadcast 495 15
BAG Infotainment 50 10
Century Communication 40 9
Pan India Network Infravest 113 8
Shri Puran Multimedia 79 8
Malar Publication 243 7
Radio Today Broadcasting 286 7
Radio Mid-Day West (India) 729 6
HT Music and Entertainment Company 752 4
Positive Radio 8 4
Rajasthan Patrika 75 4
The Mathrubhumi Printing & Publishing Co 167 4
The Malayala Manorama Co 156 4
Asianet Communications 35 2
Chinar Circuits 8 2
Eastern Media 10 2
Indigo Mass Communication 105 2
Kushal Global 19 2
Neutral Publishing House 14 2
PCM Cement Concrete 9 2
Pudhari Publication 11 2
Ananda Offset 50 1
Clear Media India 133 1
Gwalior Farms 9 1
ITM Software and Entertainments 5 1
Muthoot Finance 80 1
Nagpur Music Broadcast 15 1
Nasik South Asia FM 26 1
Noble Broadcasting Corporation 50 1
Purvy Broadcasts 3 1
Raneka Fincom 10 1
Singla Property Dealers 5 1
Syntech Infomatics 4 1

Page 89 of 260
Indian media market
Figure 79) Twenty largest licence bids (Phase II)

Bid Amount (Rs
City State Company
mn)
Mumbai Maharashtra HT Music and Entertainment 352.00

Delhi Delhi Radio Mid-Day West (India) 314.20
Delhi Delhi Adlabs Films 281.16
Mumbai Maharashtra Adlabs Films 281.16
Delhi Delhi HT Music and Entertainment 280.00
Bangalore Karnataka Entertainment Network (India) 216.00
Bangalore Karnataka Kal Radio 200.00
Hyderabad Andhra Pradesh Entertainment Network (India) 180.00
Chandigarh Chandigarh Adlabs Films 156.10
Bangalore Karnataka Radio Mid-Day West (India) 154.20
Hyderabad Andhra Pradesh Kal Radio 150.00
Pune Maharashtra South Asia FM 140.06
Lucknow Uttar Pradesh South Asia FM 140.06
Delhi Delhi Clear Media India 133.30
Bangalore Karnataka Adlabs Films 129.60
Chennai Tamil Nadu Radio Mid-Day West (India) 122.70
Ahmedabad Gujarat South Asia FM 120.06
Ahmedabad Gujarat Synergy Media Entertainment 115.00
Chandigarh Chandigarh Synergy Media Entertainment 105.11
Delhi Delhi Radio Today Broadcasting 102.60
Phase 3 of the licencing process was due to be initiated in late 2006, but the
government has decided to take a more cautious approach and has delayed the
licencing of any new stations until Phase 2 stations are up and running and in a
financially stable situation.
Restrictions on broadcasters
The Ministry of Information and Broadcasting (MIB) has refused to allow
commercial radio stations to carry news and current affairs programming. This
may be an indirect response to protect the public service broadcaster’s lead role in
this type of programming.
In addition to this, radio broadcasters are limited to owning one licence per city and
can not own more than 15% of all the licences available.
The broadcasters
Until recently, radio in India was dominated by the public service broadcaster, All
India Radio (AIR). AIR’s domestic service broadcasts in 24 languages from 223
transmitters across India on SW, MW and FM frequencies. Its primary channels
are a national channel and two FM services (FM rainbow and FM Gold).
Leading players in the commercial radio market include Adlabs Radio, Mid-day
media group, Times of India group, Sun TV and the India Today group.

Page 90 of 260
Indian media market
Satellite radio
The subscription-based satellite radio broadcaster, Worldspace broadcasts 40
channels of western and Indian popular and classical music. Its service is priced at
Rs 1000/6 mths or Rs 1,800 p.a. and the company has approximately 140,000
subscribers.
Worldspace is attempting to strengthen its market position through focusing its
marketing efforts on a small number of major cities, acquiring exclusive access to
key sports rights and opening retail outlets in shopping malls to market direct to
customers.
Competitive environment
Audience measurement is a relatively new phenomenon in Indian radio. The most
reliable survey is the Indian Listenership Track produced by the media research
company, ORG-MARG. It conducts two waves of research each year.
Its latest data suggests that the commercial players have rapidly captured share
from the public service broadcaster. We believe that the market is still too
immature to develop a reliable view on the audience and financial performance of
the various commercial players.
Figure 80) Radio reach, Mumbai (Wave 2, 2006)
Radio Mirchi 98.3 49.3
Radio City 91.1 35.5
RED FM 93.5 31.1
Radio One 94.3 18.3
AIR FM2 100.7 13.3
AIR FM1 107.1 7.6
AIR Primary 3.4
0 10 20 30 40 50 60
% Daily reach

Page 91 of 260
Indian media market
Figure 81) Radio reach, Delhi (Wave 2, 2006)
Radio Mirchi 98.3 69.1
Radio City 91.1 34.4
RED FM 93.5 33.7
AIR FM2 100.7 20.1
AIR FM1 107.1 7.2
AIR Primary 0.4
0 20 40 60 80
% Daily reach
Figure 82) Radio reach, Kolkata (Wave 2, 2006)
Radio Mirchi 98.3 68
RED FM 93.5 19
AAMAR FM 106.2 14.5
AIR FM1 107.1 12.5
POWER FM 107.8 7.6
AIR FM2 100.7 6.1
AIR Primary 1.3
0 20 40 60 80
% Daily reach

Page 92 of 260
Indian media market
Investment activity
The current rules on foreign investment are designed to allow investment (up to
20%), but to maintain financial and editorial control within India. The rules specify
that the single largest shareholder has to own at least 50% and must be an Indian
entity (unless it is a bank or other financial investor). In addition to this, foreign
investors can not be directors or have any say in the management of the station.
These rules may not be particularly attractive to foreign investors today, but we
believe that they will eventually be relaxed.
To date foreign investment has been relatively limited, though the UK groups, BBC
Worldwide and Virgin Radio have both entered the market. Whilst BBC Worldwide
acquired a 20% stake in its partner (Mid-day), Virgin Radio formed a ‘consulting
parnership’ with HT Media’s radio operation.
Figure 83) Key investments in radio

2007 Balfour Capital Noble Broadcasting Acquired 20% stake.
2007 Star TV Music Broadcasts Acquired 20% stake from India Value
(Private) Limited Fund.
2006 BBC Worldwide Radio Mid-Day West Acquired 20% stake
(India)
2006 Value Labs, NDTV Today Broadcasting Acquired 100% of India Today’s radio
and Astro Limited operation for Rs 1 billion.
Consortium
2005 India Value Fund Music Broadcasts Private equity fund acquired a 75% stake
(Private) Limited in MBL – which owns the “Radio City”
stations.
The stake was acquired from PK Mittal of
the Ispat Group (he retains a 25%
interest).

Page 93 of 260
Indian media market
D.Consumer magazines

Relatively small segment of the Indian media landscape.
Headline figures suggest readership is declining slightly (in our view, many domestic
publications are of poor quality), but this may be due to the fact that the increasing number of
foreign publications are not included in the readership surveys
Expect significant growth in medium term, as foreign players enter the market and middle
classes spend an increasing proportion of their income on leisure and luxury goods.
The Indian consumer magazines sector can be segmented into three broad
categories: domestic titles targeted at the ‘mass market’; domestic titles which are
effectively Indian imitations of European and American titles; and Indian versions
European and North American titles. The first category dominate in terms of
readership and reach, but the latter two categories reach a more upmarket, urban
audience.
In our opinion, the consumer magazines sector is still underdeveloped in terms of
quality of product and also many niches which are commonplace in developed
markets are still in very immature or non-existent in India.
The sector generated revenues of approximately Rs 10.5 billion (US$235 million) of
which Rs 65.6 billion (US$ 195 million) was adspend. The National Readership
Survey (NRS) indicates that magazine readership is declining, with an annual
decline of 9.3% to 68 million readers in 2006. This apparent decline may be due to
the fact that many of the recently launched titles are not part of the NRS study.
Figure 84) Readership of leading consumer magazines

Title Language Frequency Owner 2006
India Today (Hindi edition) Hindi Weekly India Today Group 10,700,000
Saras Salil (Hindi) Hindi Fortnightly Delhi Press Group 7,139,000
India Today (English edition) English Weekly India Today Group 5,150,000
Tamil Weekly Kungumam
Kungumam 3,347,000
Publications (Sun TV)
Kumudam Tamil Weekly Kumudam Publications 3,698,000
Sarita Hindi Weekly Delhi Press Group 2,820,000
Grihashobha Hindi Weekly Delhi Press Group 3,788,000
Swati SVP Weekly N.a. 3,408,000
Malayalam, Weekly Malaya Manorama
Vanitha 4,115,000
Hindi group
Malayalam Weekly Malaya Manorama
Malaya Manorama 2,351,000
group
Malayalam Weekly Malaya Manorama
Balarama 2,526,000
group
Ananda Vikatan Tamil Weekly Vikatan Group 2,426,000
Cricket Samrat English Monthly 2,370,000
Readers Digest 2,321,000
Grihalakshmi (Malayalam) 2,312,000
Nirogdham 2,034,000

Page 94 of 260
Indian media market
Among the leading titles, India Today is a weekly news and current affairs
publication and Saras Salil is a women’s lifestyle magazine. Many of the biggest
selling titles are in regional languages, which continue to maintain (if not build) their
readership; the title, Kungumun is a Tamil language publication largely read in the
state of Tamil Nadu.
Leading magazine publishers include the Living Media group (publisher of India’s
highest readership title, India Today and Indian versions of a number of foreign
titles), Cybermedia (focused on consumer technology titles), Infomedia (publisher
of special interest magazines) and the Times of India group (range of women’s and
other general interest titles).
Foreign investment
Foreign ownership up to 100% is now allowed (up from a 76% maximum). The
highest profile investment to date has been that of the BBC’s commercial arm, BBC
Worldwide; its joint venture with the Times of India group took over publication of
29 titles from Times of India and provided a route to market for a range of the
BBC’s UK magazine formats. The BBC is the third largest consumer magazine
publisher in the UK and has a large number of formats which may work well in the
Indian market; these include Good Homes, Good Food, Easy Gardening, Homes
and Antiques.
Figure 85) Key foreign investments in consumer magazines

November 2003 Haymarket Sorabjee Automotive Acquired 50% stake. SAP is the
publishing Publishing publisher of Autocar India.
October 2003 BBC Times of India Joint venture called Worldwide Media
Worldwide in which each party has a 50% stake.
August 2005: Launch of the BBC
title, Top Gear in India.
Figure 86) Recent foreign magazine launches

Publisher Titles Notes
Conde Nast Traveller Advertising and marketing partnership with India

Today Group
Vogue (Late 2007)
Dennis Publishing Maxim Published under licence by Media TransAsia
Time Out Time Out Published by Paprika Media under licence from
UK publisher

Page 95 of 260
Indian media market
E. Business, Scientific and academic media

Immature market with strong growth potential. As non-agricultural sectors of the
Indian economy develop, there will be an increasing demand for sector-specific
business information (periodicals, online, events).
Sectors with critical mass include agriculture, technology, energy and
pharmaceuticals.
Foreign ownership up to 100% is now allowed.
The future development of the Indian business media market (print and online
publishing and events) will proceed in line with the development of key sectors of
the economy. In sectors such as IT and pharmaceuticals where India has well
established companies, business publishing is also well established. In emerging
sectors such as organised retail and infrastructure, business media is less well
developed. Another key trend in the sector has been the entry of foreign
publishers. They have adopted a dual strategy of offshoring jobs to India (in order
to cut costs) and also of launching Indian editions of key publiscations.
The sector is highly fragmented with dozens of niche players publishing a handful
of magazines each. The sector is estimated to be worth Rs 4.5 billion (US$100
35
million) across publishing and events in 2006 , with revenues generated from
advertising, subscriptions and sponsorship.
The larger players tend to be active in those sectors of the Indian economy which
have grown rapidly in the last decade; examples include Cybermedia (technology)
and Exchange4media (advertising services). Other leading groups include
Jasubhai group (IT, pharmaceuticals, energy) and Infomedia.
Many of the magazine publishers also operate exhibitions as ‘brand extensions of
their magazines.

Page 96 of 260
Indian media market
Figure 87) Business magazines published by domestic publishers
Sector Title Owner
Automotive Auto Monitor Infomedia India
Chemical & Process Industry Chemical Engineering World Jasubhai Group

Chemical Products Finder Jasubhai Group
Chemical World Infomedia India
Modern Food Processing Infomedia India
Modern Plastics & Polymers Infomedia India
Photo Imaging Infomedia India
Construction and Architecture Indian Architect & Builder (IAB) Jasubhai Group
Energy & Exploration Offshore World Jasubhai Group
IT Digit Jasubhai Group

Network Computing Jasubhai Group
Computer Reseller News Jasubhai Group
Skoar! Jasubhai Group
Manufacturing Technology Industry 2.0 Jasubhai Group

Electrical and electronics Infomedia India
Modern Machine Tools Infomedia India
Search Infomedia India
Media and advertising Pitch Exchange4media

Impact
Outsourcing Global Services Cybermedia
Pharma & Biotechnology Pharma Bio World Jasubhai Group

BioSpectrum Cybermedia
Modern medicare Infomedia India
Modern Pharmaceuticals Infomedia India
Property Realty Plus Exchange4media
Telecoms Voice&Data Cybermedia
Textiles Modern Textiles Infomedia India

Page 97 of 260
Indian media market
Foreign investment
Foreign ownership up to 100% is now allowed, but much of the focus of foreign
groups has been in establishing their own outsourced publishing operations.
Figure 88) India strategies of leading business and professional

publishers
Investor Notes
Reed Elsevier Partnership with Infomedia India (December 2005)

Thomson Thomson Scientific publishes pharmaceutical regulatory
intelligence on India from India
Wolters Kluwer Wolters Kluwer Health published journals in India (10
journals are published in an Indian edition)
VNU (AC Nielsen) Owns leading Indian media research firm ORG-MARG
TNS Market research operation
United Business Media Acquired medical publisher in 2005
Launching PR Newswire in India
Reuters 26% stake in television news channel
Over 300 journalists based in Bangalore
Springer Science & Media Operates a scientific publishing outsourcing operation in
India
In terms of foreign direct investment into Indian companies, there have been a
small number of investmebts and joint ventures. This is partly due to the lack of
Indian companies with a strong track record (established products with a good
revenue history). We believe that this will change in the next five years as the
sector matures.
Figure 89) Key foreign investments in business publishing
2005 United Mediworld Medical publisher

Business
Media
2004 Ringier Infomedia Limited Joint venture to launch new titles in India.
Number of specialist titles to be launched in
2005 (target sectors include: plastics,
packaging, food processing, textiles and
pharmaceuticals).

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Indian media market
F. Outdoor advertising

Long established industry which initially grew in an unregulated manner. Suffered in
the late 1990s from court decisions (billboards were banned in Delhi as they were
deemed to be a traffic hazard).
Demand is extremely buoyant.
Long term growth likely to be strong (as India’s transport and civic infrastructure
develops).
Foreign players such as Clear Channel and JCDecaux have made a successful
entry, winning key contracts in major cities.
The Indian outdoor advertising industry was worth Rs 10 billion (US$230 million) in
2006; growth in the largest cities has been very strong (Delhi achieved 18-20% and
Mumbai achieved 10-12%). Some industry estimates sugggest that the market
may be worth up to Rs 20 - 25 billion (reliability of market size data is poor,
because of the large number of small ‘unregulated’ players who service local
markets). Billboards account for approximately two thirds of the market by value,
with bus shelters accounting for a fifth. The recent strong growth has been off the
back of buoyant consumer marketing spend and a scarcity of prime outdoor
advertising sites; this has led to both substantial increases in volume of space and
price inflation.
Leading players include Selvel Vantage group, a leading Kolkata-based group with
a presence across India, Posterscope and a number of foreign players such as
News Outdoor, Clear Channel and JCDecaux.
Retail and transport infrastructure will be major growth driver

Growth in India’s retail and transport (road, rail and airport) infrastructure is likely to
support the growth of the outdoor sector over the next 5-10 years. In cities such as
Delhi, the development of the Metro rail system has seen a considerable amount of
new hoarding space become available. In the most recently awarded contract (for
the Barakhamba-Dwarka line of the Delhi metro), 47,000 square feet of space were
made available for a 5 year term for Rs 250 million and a share of revenues.
Legal and regulatory challenges

The outdoor sector has faced a number of legal and regulatory problems over the
last 10 years. This has largely been because of the environmental problems
associated with the enormous growth in unlicenced billlboards in the major cities.
In November 1997, the Indian Supreme Court ordered the Delhi local authority to
remove all billboards which could prove a safety hazard from the city. This had a
negative impact on the industry in the late 1990s, but also led to significant efforts
to improve the quality and location of billboards. Prices for prime locations today
are five times what they were in the late 1990s.
More recently, in Tamil Nadu, the state government is considering banning
billboards in the city of Chennai.

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Indian media market
Foreign investment
There are no specific rules regarding foreign direct investment in the outdoor
advertising market. The US-based outdoor group, Clear Channel entered India in
1999 in Mumbai. In 2004, it merged its operations with those of the Mumbai-based
Mid-day group and eventually acquired the whole operation. Today it operates 100
billboards in 8 cities and is also active in street furniture (in Bangalore). The
French group, JC Decaux also entered the market through winning a contract in
Delhi.
Figure 90) Key foreign investments in outdoor advertising

2006 News n.a. Contract for bus shelters in Bangalore.

Outdoor
(News
Corporation)
2006 JCDecaux n.a. 15 year contract wth Delhi council to build and
operate 200 bus shelters. Advertising
revenues to be shared (with Delhi Council
receiving 10-20% share).
2004 Clear Mid-day Merger of outdoor advertising operations.
Channel Outdoors

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Indian media market
G. Filmed entertainment

Largest film industry in the world (based on number of productions).
Positive outlook because of: increased demand from pay TV for premium content; growth in
multiplexes and family visits to the cinema; significant overseas revenues from the Indian
diaspora.
The Indian filmed entertainment industry generated revenues of Rs 58.5 billion

(US$1.3 billion) and produced close to 1000 films in 2006. Indians managed 3
billion cinema visits - almost twice as many as the USA and three times as many as
the rest of Asia.
Figure 91) Key statistics on Indian filmed entertainment
Box office revenues 2005: US$1.2 billion

2006: US$1.3 billion
No. of movie releases ~ 1000
Revenue mix
Domestic box office 75%
Overseas box office ~ 10%
Music and other revenues ~ 10%
Video 5% plus
The structure of the Indian filmed entertainment is radically different to that of

Hollywood. Both film production and distribution are highly fragmented with
successful individual producers attracting the best talent, biggest budgets and
gaining the best theatrical distribution. The nature of the industry is changing; as
film budgets grow and the value of premium film content increases, a more
‘corporate’ approach to both production and distribution is emerging.
Today the industry is benefiting from huge changes in the Indian media industry
with growth in multiplexes, satellite and cable distribution and home entertainment.
Key growth drivers include:
Growth in multiplexes. The construction of new multiplexes is continuing at
a rapid pace across India. Their development has been supported by the
enormous number of new shopping malls in major cities and the availability
of tax breaks. Multiplexes have benefited the filmed entertainment sector
through bringing in higher ticket prices and greater transparency.
Pay TV. The emergence of DTH and CAS technology in cable TV is helping
film producers and rights owners to better obtain subscription revenues. In
the past, cable operators would under-declare revenues and there was
significant signal piracy.

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Indian media market
Growth in DVD ownership. Household ownership of DVD players is

growing rapidly and should help film companies develop a new valuable
revenue source.
International demand. As important is the increasing demand from the 20
million citizens of the Indian diaspora in Europe, Asia and America.
Revenues from these markets are likely to account for almost half of the
industry's revenues in the next five years and this internationalisation of
Bollywood is leading to growth in overseas investment in Indian films.
Leading players in film production and distribution include Yashraj films, Mukta
Arts, UTV, Balaji Telefilms, Adlabs, and Shringar Cinema.
Figure 92) Key statistics on Indian filmed entertainment
Company Notes
Film production
Balaji Telefilms Television and film production
Key provider of content to Star TV
Yashraj films Big budget film producer (managed by director,
Yash Chopra)
Adlabs Films Film production, distribution and multiplex
development
Mukta Arts Big budget film producer (managed by director,
Subhash Ghai)
Percept Picture Company Big budget film producer
UTV Disney is a shareholder and UTV has formed
various production and distribution agreements
with international studios (including Sony and
Fox)
Zee Telefilms Leading commercial broadcaster who has entered
the film production business (also operates 400
cinema screens across India)
Film distribution and multiplexes

PVR Leading developer and operator of multiplexes
Shringar Cinemas Active in distribution and multplex development
Eros International International film distribution
Cinemax Multplex operator
Foreign investment
Foreign direct investment in Indian filmed entertainment has been relatively small
to date; much of it has been from high net worth individuals. However, the
increasingly high profile of Indian films in Europe and North America is leading to
an increase in more strategic investment.
US studios who are also active in television broadcasting are beginning to move
into the production and distribution of Hindi language films in India and North
America.

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Indian media market
Figure 93) Investments by Holllywood studios
Company Active in Indian Film activities

broadcasting
Sony Yes, through Sony Entertainment Partnership with UTV

Television
News Corporation Yes, through Star TV Agreement with Balaji Telefilms
and UTV
Time Warner Yes Rumoured to be considering
equity investment in Indian film
producer
MSM Yes None

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Indian media market
H.Music

Industry is experiencing declining revenues, partly due to a high level of music piracy
Future prospects depend on the success of the digital download market
The Indian music industry generated revenues of approximately Rs 10 billion

(US$220 million) in 2006; this is a considerable decline over the previous four
years. The sector is unique (compared to other coutries) in generating a large
volume of its revenues from sales of film soundtracks. The revenue decline is
largely due to high rates of piracy, which have worsened with the availability of
online music services.
Music download services

The profitability of the Indian music industry will largely depend on how it tackles
the opportunities and challenges presented by the online music. Providing music
download services to India’s 120 million mobile subscribers as ringtones and full
tracks presents a large commercial opportunity.
Key to driving this growth is the availability of low cost mobile handsets with mp3
capability. Industry estimates suggest that in 2006, there were 300 million
downloads (music, ringtones and video clips) generating Rs 4.5 billion (US$100
million) in revenues.
Companies such as Indiatimes 8888 and Soundbuzz have developed large audio
download services. Mobile operators are also offering download services; Airtel
charges Rs 20 for a full song download and Rs 30 for a music video download.

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Indian media market
I. Classified directories

Market has been held back by difficult regulatory environment in the telephone directories
sector.
Positive outlook as demand for services (e.g. health, legal and wedding services) grows among
India’s middle classes. Standalone yellow pages have been successful in major cities.
Online and directory enquiry services account for very small share of usage and revenues.
Strong opportunity for foreign investors.
The Indian directories market is worth Rs 2.5 billion (US$50 million) in 2006. The
industry is growing at 15%-20% per annum, broadly inline with the general growth
in adspend in India.
The sector has three broad product categories: official telephone directories
(published by the incumbent telecoms operators such as BSNL or by third parties
under contract); consumer ‘independent’ yellow pages directories; and business to
business, trade directories.
The official telephone directories are published in English and regional languages;
there usefulness is limited as distribution is poor and frequency of publication can
be at least two years.
The yellow pages directories market is lead by three major players (Indiacom,
Infomedia and Getit) who each command approximately 20-25% market share. In
2004, the three largest publishers had a combined circulation of approximately 8.76
million copies across 50 locations in 16 Indian states (out of a total of 28 states).
Assuming that these three players have 75% market share, the total circulation is
approximately 11.7 million copies. The fourth major player is NextGen Publishing;
it has been established by the former CEO of Infomedia, Hoshang Bilimoria and the
Indian publishing group, Forbes Asia.
In the business to business directories sector, there are many small publishers of
whom some focus on a particular industry niche.
Regulatory environment for telephone directories

The Indian telecoms regulator, TRAI conducted a consultation process in late 2004
in response to a growing awareness that the rapidly growing telecoms market was
not being served effectively by the current licencing regime. Many major markets
do not have an up to date directory (or in some cases, no directory at all) and the
rapid growth in mobile subscribers had created new challenges in terms of effective
number coverage.
In August 2004, TRAI said:
“The requirements for publication of printed Telephone Directory and
Directory Enquiry Services have increased manifold in the present multi -
operator multi-service scenario, with intense competition coupled with a very
high growth rate, so have the issues/ problems related to provision of directory
services.”

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Indian media market
In March 2005, TRAI published a set of recommendations but there has been no
subsequent movement on the implementation of these recommendations.
Foreign investment
There are no restrictions on foreign investment in the classified directories sector.
There was an investment by the Italian directory publisher, Seat in the early 1990s;
this has been divested.

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Indian media market
J. Online media

Very small market (revenues and penetration) with enormous growth potential.
Most global players have a strong Indian presence (Google, Yahoo, Monster, Ebay).
Mobile Internet offers strong opportunity (as mobile phones have considerably higher
penetration than PCs).
The online media sector accounts for a very small portion of media consumption
and adspend, but presents a very significant growth opportunity. Even today, with
only 8.1 million subcribers, the sector is very competitive with both traditional media
companies and ‘pure online players’ competing aggressively for the relatively small
audience and revenues.
Internet adspend
Internet advertising revenues are estimated at approximately Rs 1.6 billion (US$40
million) in 2006, with annual growth of between 50% - 70%. In addition to adspend,
the online matrimonials sector generates approximately Rs 360 million (US$8
million) in subscription revenues.
Figure 94) Online media advertising revenues
2,500
2,180
2,000
Online adspend (Rs mn)
1,620
1,500
1,070
1,000
420
500
-
2004 2005 2006 2007
The biggest source of online advertising is recruitment, accounting for two thirds of
adspend. Thie reflects the fact that the Internet’s early development in India was
heavily driven by the explosive growth of the IT industry in the 1990s; its demands
for new employees and the ease of online recruitment, ensured that the most
successful entrants to the online media space were job sites.

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Indian media market
Figure 95) Online media revenues by type (2006)

Others
10%
Telecoms
4%
Travel
9%
Recruitment
Financial
60%
services
17%
E-commerce market
India’s e-commerce market is estimated to be worth Rs 11.8 billion (US$260
milllion) in 2005/06. Industry estimates suggest that the market should acheiive
over 50% annual growth over the next 3-5 years.
Internet usage and penetration

There are approximately 25 million Internet users; household penetration is still low
36
(8.1 million subscribers ), with cybercafé and work Internet access still very
important.
Figure 96) Growth in Internet penetration

9,000
8,000 7,709
6,703
No. of subscribers (thousands)
7,000
6,000
4,550
5,000
3,640
4,000 3,420
3,040
3,000
1,557
2,000
950 903
1,000 190
80
-
2000 2001 2002 2003 2004 2005 2006
No. of subscribers No. of broadband subscribers
The importance of mobile services

The relatively high penetration of mobile services in india (approximately 120
million users) will ensure that mobile networks become an extremely important
channel for online media services.

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Indian media market
Online strategies of traditional media companies

Traditional media companies have entered the online media space largely through
the development of online versions of their print products. English language media
(newspapers and classified directories) have been the most active in the online
space; traditional local language media companies are only now beginning to enter
this space as they are challenged by local language online offerings pure new start
ups.
Of the traditional players, the Times of India group has been among the most
successful. Its portal, indiatimes.com has established itself as top 3 player in the
online recruitment space.
New Internet players

A number of ‘pure play’ Internet companies also emerged in India; in areas such as
online recruitment (Naukri.com), dating (Shaadi.com), auctions (Bazee.com) and
information portals (rediff.com), Indian companies successfully launched Indian
equivalents of better known US players.
Figure 97) Major domestic players
Company Notes
Infoedge The leading online classifieds company.

Operates three websites targeting the recruitment, property
and matrimonials sectors.
Sify Portal, with strong focus on business news
Rediff Portal (large overseas Indian audience)
People Group Owner of leading matrimonials website, Shaadi.com
Foreign entrants
Many of the major US-based online players have invested heavily in their Indian
offerings.
Figure 98) Foreign entrants
Company Notes
EBay Leading online auction site in India

Acquired the domestic player, Baazee,com for US$50 million
Monster Entered the market in 2001 and is now the leading online
recruitment site in India
MSN Portal launched in 2000 is now available in English and a
range of regional languages
Google Partnership with the leading mobile operator (Bharti) to offer
mobile search
Yahoo Entered the market in 2000
Has launched local language services for email and chat

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Indian media market
Foreign investment
Most of the major global Internet players have been active in India since the late
1990s; many started with small operations and have bolstered these through
acquiring domestic players.
Figure 99) Key foreign investments in the Internet sector
Date Niche Investor Investee
Sep-06 Online Media Sequoia Capital Fund
Sep-06 Online film rental Matrix Partners Seventymm
Aug-06 Matrimonials Yahoo & Canaan Partners Bharat Matrimony Group
Jun-06 Travel Kleiner Perkins Caufield & Byers and Cleartrip.com

Sherpalo Ventures
Jun-06 Classifieds Kleiner Perkins Caufield & Byers and InfoEdge

Sherpalo Ventures
Mar-06 Mobile gaming Sequoia Capital Nazara Technologies
Mar-06 Matrimonials Sequoia Capital Shaadi.com
Feb-06 Travel Sequoia Capital Travelguru.com
Dec-05 Portal Sequoia Capital Times Internet
Nov-05 Portal Infinity Capital Sify.com
Aug-05 Classifieds Westbridge Capital Partners, Sequoia Indiatimes.com

Capital
Jun-05 Travel NorthWest Ventures Capital, Reliance Yatra.com

Capital and TV18
May-05 Travel Soft Bank Asia Infratructure Fund MakemyTrip.com
Aug-04 E-commerce Ebay Bazee.com
May-04 Recruitment Monster Jobsahead
Nov-04 Gaming TOM Online Indiagames.com
Sep-04 Gaming 3i & BV Capital Indiagames.com

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Indian media market
K.Marketing services

World class marketing services industry.
Global players are well represented.
Will benefit from strong growth in adspend; however, profitability is under threat due to
competition and pressure from customers
India has a highly skilled marketing services industry fully integrated into the global
market. Prior to the 1990s, the sector was dominated by domestic players. Today,
all the leading players are either owned by global players or have them as major
shareholders.
Figure 100) Leading Indian advertising agencies
Agency Shareholding Key clients
Ogilvy & Mather WPP 74%, others 26% Asian Paints, BP/Castrol, Cadbury, Gillette India,
McCann Erickson McCann Erickson Worldwide Inc Coca-Cola , Hindustan Lever, Johnson & Johnson,
India 92.8%, others 7.2% L'Oreal , General Motors,
Lowe Lintas The Interpublic Group, USA 49%, Unilever, Idea Cellular, Britannia, LG, Maruti Udyog,
ITC, Bajaj Auto, J&J , The Hindu
Local Shareholders 51%
JWT JWT Pepsico, DYC, Hero Honda Motors, Glaxo

Smithkline,
Leo Burnett Leo Burnett P&G , Coca-Cola , Heinz India, McDonald's ,
Mudra Indian 90%, DDB Worldwide 10% The Godrej Group - Godrej Consumer Products &
Communications Godrej Agrovet
Grey Worldwide Grey Global Group 100% Ministry of Tourism, ONGC, Gujarat Ambuja,
Chhattisgarh Tourism, Haier Appliance
FCB Ulka FCB Worldwide 51% Tata Motors, Tata Teleservices, Whirlpool, Amul,
Hero Honda, ICICI Bank
Contract JWT Fareastern, HTA HSBC, NIIT, Cadbury , Dabur, Tata Group,
Advertising Shoppers' Stop, JK Industries, Madura Garments ,
Wipro, Asian Paints
Rediffusion DYR Diwan Arun Nanda 30%, Ajit Bharti, Colgate, Ioch, Onida, Citibank, Diwgent
Balakrishnan 30%, Y&R INC 20%, Media, Tata Motors
Dentsu Inc 20%
RK Swamy BBDO N.A. Dr Reddy's Labs, Hawkins, ICI Dulux, Indian Airlines,
Mercedes-Benz
Saatchi & Saatchi Foreign Holdings 80%, Local TVS Victor, Ariel, Head & Shoulders, Speed & MAK /
Management 20% Bharat Petroleum
iB&W Mukesh Gupta 80%, Skoda Auto India, Victorinox, RC Cola International
Communications
Nutan Gupta 20%
Euro RSCG Havas 62.5%, Reckitt Benckiser, Sony Entertainment, HDFC Bank
Indian Shareholders 37.5%
Bates Enterprise WPP Group (majority ), Mohammed Nokia, Tata AIG, Dabur, ITC, IDBI, Indian, ABP
Khan Group, Titan & World of Titan, HLL, Star News

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Indian media market
Agency Shareholding Key clients

Ambience Publicis Publicis Procter & Gamble - Vicks, Marico Industries,
Hindustan Lever
SSC&B Lintas Lintas India (an Interpublic Group MTNL, BSNL, UB Group, Abbot Labs, Vardhaman,
company) ICICI Direct, Cybermedia, Essar Group, Videocon,
Taurus Mutual Fund, PSI (Rajasthan), Bank of Nova
Scotia
Everest Brand : Rediffusion DYR 100% LIC, Parle Products , Elder Pharma, Ansal Properties
Solutions
Dentsu Marcom Dentsu Inc 74% Honda Motorcycles & Scooters India, Honda Siel
Cars India, Canon India
Mogae Consultants 26%
Interface IPG 51% Mahindra Auto, Mahindra Farm Equipment, Club

Mahindra, Blue Star
The leading international groups have been actively building a presence in India
through both organic growth and acquisitions.
Figure 101) Recent foreign investments in marketing services
Jan-05 Aegis Percept Group Acquired 51% stake in Percept group (which
offers outdoor advertising services).
WPP (Bates
Jan-06 Asia) Sercon Indian marketing services group
Feb-05 Omnicom Kidstuff Acquired by Omnicom’s Indian subsidiary,
Promotions Mudra Communications
Jun-06 IMS Group Candid Below the line marketing services
Jun-06 M & C Saatchi Dhar & Hoon Marketing services
Synchron
Parexel Research
Jun-06 International Services Indian market research group
Aug-05 WPP (Bates Enterprise Nexus Acquired 74% stake for Rs 400 million.
Asia)
Aug-06 Gfk Mode Group Market research services
Solutions
Nov-05 Publicis Integrated Marketing services
Dec-06 WPP Ray + Kesavan Design agency

Page 112 of 260
Indian media market
VI) COMPANY PROFILES

Page 113 of 260
Indian media market
A.Adlabs Films
Activities: Film production and processing, multiplex cinemas and radio

Ownership: Listed on BSE and NSE
Controlled by Anil Ambani (and his Reliance ventures)
Recent strategic developments: Expanded into radio, but this business will be spun off into a
separate company in 2007
Market data Share price performance (Last 12 mths)

Market codes: Reuters: ADLF.BO
Bloomberg: ADLF@IN
Current price: Rs 464.95
52 wk low: Rs 171.10
52 wk high: Rs 518.40
Adlabs is one of India’s leading filmed entertainment companies. The group has
recently expanded into commercial radio, but is expected to spin off its radio
activities into a separate company during 2007. Adlabs is a publicly listed company
but is majority owned by the Anil Ambani controlled Reliance businesses (Reliance
Capital and other subsidiaries).
Adlabs is active in all areas of filmed entertianment from finance and production to
distribution (the company owns a number of cinemas across India). The
company’s strong presence in Mumbai has helped it to become the market leader
in film processing for Bollywood studios.
Figure 102) Adlabs Films, summary financials
y/e March (Rs millions) 2003 2004 2005 2006 CAGR
Revenue 781 829 875.5 1,132.1 13%

% Change 28% 6% 6% 29%
Net profit 166.5 176.4 206.7 263.1 16%

% Change 61% 6% 17% 27%
% Margin 21% 21% 24% 23%

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Indian media market
Historical development
2006 April - Plan announced to spin off radio operations into a publicly listed
company
January – Successfully bids for new commercial radio liecnces across
India
37
2005 December - FCCB offering worth US$100 million. Funds to be
invested in business expansion.
July - Reliance capital acquired 51% stake for Rs 2,600 billion.
November – partnership with Indian film director Ram Gopal Verma
2001 Development of first Multiplex complex in Mumbai
2000 Public listing on BSE
1978 Adlabs Films founded by Manmohan Shetty and Vasanji Mamania.
Activities
Adlabs activities can be categorised as follows:
Film Processing
Adlabs is the leading film processing company in India with a volume market share
of approximately 41% (2004). The company expanded its activities in film
processing to include psot-production services such as special effects and editing;
this was primarily achieved through the acquisition of a minority stake (6%) in a
company called Prime Focus.
Film Exhibition
Adlabs is the pioneer of Multiplex cinemas in India building its first mulitplex
(Wadala) in Mumbai in 2001. Since then the company has built multplex
complexes in three other locations in Mumbai, Nasik and Pune. In addition to this it
has built an Imax cinema at Wadala. At end 2005, the company had 34 screens;
this number is expected to increase to 104 screens by 2008.
Film Production
Adlabs entered film production in 2001 and has since launched a number of high
profile big budget Bollywood films (including crossover films such as The Rising).
The company has a strong relationship with one of india’s leading directors Ram
Gopal Verma.
Digital film distribution
Adlabs has recently established a joint venture (MADEL) with the Indian media
company Mukta Arts to launch a new form of digital film distribution. The technique
is based on recording films onto encrypted hard discs and ditributing them to
cinemas in small cities and towns. The service should allow more rapid film
distribution and reduce piracy.
Radio
Adlabs Films successfully bid for commercial radio licences across India in early
2006 and has the potential to become one of a handful of operators with effective
national coverage. The radio business will be spun off into a separate publicly
listed company in 2007.

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Indian media market
Management and ownership
Figure 103) Adlabs Films, key shareholdings
Shareholder % of capital (June 2006)
Reliance Land Private Limited 51.76

Reliance Capital Limited 3.15
Manmohan Shetty 18.32
BSMA Limited 4.40
Arisaig Partners PTE (Limited) 4.44
DB Fund (Mauritius) Limited 1.07
SBIMF- Magnum Sector Funds Umbrella Emerging 1.51
Figure 104) Adlabs Films, key management and directors
Name Description
Manmohan Shetty Board of Directors and Founder, Also serving as the Chairman of the
National Film Development Corporation
Vasanji Mamania Co founder, Responsible for Digital and Multiplexes division.
Pooja Shetty Board of Director, Head of Film Exhibition and new business
acquisitions
Karan Johar Board of Director, Successful Bollywood director
Gautam Dosi Board of Director, Group President of Anil Dhirubhai Ambani Group
Brij Mohan Sharma Chief Financial Officer
Suresh Bharadwaj Chief Executive Officer (Exhibitions)
Praveen Nischol Independent Producer and Director.

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Indian media market
Financials
Adlabs has achieved a strong performance across all areas of its operations.
Figure 105) Adlabs Films, financials

Revenues
Film processing 566 572 625.7 657.3 5%
Multiplexes 174 220 195 252.8 13%
Film production - 2 10.9 71.2 497%
Film distribution - - - 53.1 n.a
Other revenues 40 34 43.6 97.5 34%
Total revenues 781 829 875.5 1,132.1 13%
Profit Before Tax

Film Processing & Traded Goods 228 260 298.8 277 6%
IMAX and Multiplexes 49 51 28.9 2.44 -63%
Film Production - - 10.9 99.05 n.a.
Interest charges -20 -14 -15.8 -8.87 n.a.
Total PBT 266 297 321.7 369.6 11%
Figure 106) Adlabs Films, Segment analysis
Revenue (2005)
Other
Film
revenues
distribution
9%
5%
Film
production
6%
Film
Multiplexes processing
22% 58%

Page 117 of 260
Indian media market
B.Anand Bazaar Patrika
Activities: English and Bengali newspaper publishing in West Bengal

Ownership: Privately owned (controlled by Sarkar family)
Recent strategic developments: Expanded into news broadcasting and film production
Anand Bazaar Patrika (ABP) is the leading newspaper publisher in the West
Bengal region. The Kolkata-based company publishes a wide range of newspapers
and magazines in Bengali and English. Key titles include the flagship dailies,
AnandaBazar Patrika and The Telegraph; these are the largest circulation
newspapers in Bengali and English respectively in West Bengal.
The flagship title “Anandabazar Patrika” was first published in 1922 and distributed
in West Bengal and present day Bangladesh. Further titles were launched in the
1930s and the first magazine was pulished in 1940. In the mid 1970s, the group
entered the English language newspaper market with The Telegraph. It also
launched a business newspaper, Business Standard
Figure 107) ABP, key publications
Name Circulation Readership Language Frequency
Anandabazar Patrika 950,000 6,090,000 Bengali Daily newspaper
The Telegraph 320,000 (No. 1 13.4 million English Daily newspaper

in West
Bengal)
Prabasi Anandabazar Bengali Weekly newspaper

(overseas market)
Desh 82,000 600,000 Bengali Bi-monthly magazines
Business World 140,000 320,000 English Weekly magazine
Anandamela n.a. n.a. Bengali Weekly childrens magazine
Anandalok 98,700 n.a. Bengali Bi-monthly film news

magazine
Sananda 170,000 n.a. Bengali Bi-monthly women’s

magazine
Sports world n.a. n.a. English Sports periodical
Sunday n.a. n.a. English English news periodical
In 2004, the group entered the news broadcasting market with the acquisition of a
76% stake in MCCS for Rs 750 million. MCCS provides Star TV with its news

Page 118 of 260
Indian media market
content and StarTV also owns the remaining 24% equity. In 2005, the group
launched a Bengali news channel, Star Ananda in partnership with Star TV.
In October 2006, ABP invested in Kaleidoscope Entertainment (a media company
controlled by the leading Indian film producer, Bobby Bedi); the joint venture will
create content for a range of platforms, including mobile services.

Aveek Sarkar (CEO) and his family own the group.
Figure 108) ABP, key management and directors
Name Description
Aveek Sarkar Editor-in-Chief and CEO

Bijit Kumar Basu Printer and Publisher
Amitava Dutta Vice President
Deepak Pramanik General Manager- Advertising/Marketing
Sanjay Prasad General Manager- Circulation
Bijit Kumar Printer and Publisher- Desh Magazine
Madhumita Chattopadhyay SBU Head
Devasree Chadha Senior Marketing Manager- National sales magazine
Sandip Mitra Chief Manager circulation
Pradeep Gairola General Manager (Western Region).
Previously served as Head of International Operations at Mid-day
Multimedia.

Page 119 of 260
Indian media market
C.Balaji Telefilms
Activities: Television and film production company

Ownership: Publicly listed (major shareholders are Star TV and the Kapoor
family)
Recent strategic developments: Expanded into film production in 2005

Market codes: Reuters: BLTE.BO
Bloomberg: BLJT@IN
Current price: 126.25
Mkt. Cap.
52 wk low: 95.00
52 wk high: 196.95
Balaji telefilm is one of India’s leading television and film production companies.
The company’s core business is the production of Hindi language fiction
programming (accounted for 82% of revenues in 2005). Balaji Telefim’ is the
leader in drama programming with its key serials (Kyunki Saas Bhi Kabhi Bahu Thi
and Kahaani Ghar Ghar Ki) achieving some of the highest ratings in Indian
television.
The listed company is controlled by the Kapoor family (one of the leading acting
and prodution families in Bollywood). Ekta Kapoor is the creative Head and has a
very strong reputation in Indian television.
Figure 109) Balaji Telefilms, summary financials
y/e March 2003 2004 2005 2006 CAGR

(Rs millions)
Revenue 1,874.5 1,844.4 2,016.9 2,890.6 15.4%

% Change 65.7% -1.6% 9.4% 43%
Net profit 574 554 412.9 594.2 1.1%

% Change 97.8% -3.5% -25.4% 44%
Net Margin 30.6% 30% 20.4% 20.5%

Page 120 of 260
Indian media market
Television content production

Balaji Telefilms produces commissioned and sponsored television content in Hindi
and South Indian regional languages. This contributes 93% of total revenues
(2005). The majority of the programming targets Indian house wives and deals with
woman-related themes. The company launched five new series in 2006, which led
to a 23% increase in output volume to 2,113 hours (2005: 1,720).
Film Production
Balaji Telefilms ventured into the film production segment in 2005 with two
successive releases. The first movie produced “Kya Kool Hai Hum” was a
moderate success while the second movie flopped at the box office.
Historical Development
Balaji Telefilms started in 1994 when it was commissioned to produce the Hindi
language series “Mano Ya Na Mano” for the Zee TV network. In 1998, the
company won its first commission from the public service broadcaster,
Doordarshan. In 1999, the company produced its first non-Hindi content for the
tamil language broadcaster, Sun TV.
In 2000, the company listed on the Bombay Stock Exchange and merged with Nine
Broadcasting India (controlled by Kerry Packer).
2006 August – Established wholly owned subsidiary in Middle East for
overseas television production.
2004 August- SEBI launched internal trading investigation.
August- Star TV acquired 21% stake for Rs 1.55 billion.
July- Ventured into non fiction content production.
2002 April- Chairman divested 10.11% stake.
April- Launch of new Hindi language programmes on Sony, Star and
Zee television networks.

Balaji Telefilms was founded by the Kapoor family, whose members control 42% of
the equity. Star TV have a 26% stake.
Figure 110) Balaji Telefilms, key shareholdings
Shareholder % of capital 9June 2006)
Asian Broadcasting F2 LLC (Star TV) 25.99%

Shobha Kapoor 15.24%
Ekta Kapoor 14.92%
Jeetendra Kappor 8.54%
Tusshar Kapoor 3.11%
T Rowe Price International INC A/c T Rowe 6.06%
Price

Page 121 of 260
Indian media market
Figure 111) Balaji Telefilms, key management
Name Description
Shobha Kapoor Managing Director and Chief Executive Officer

Jeetendra Kapoor Chairman (Non-Executive)
Ekta Kapoor Creative Director
Akshay Chudasama Director
Merger and Acquisitions and Consumer protection.
Dhruv Kaji Director
Served as Finance Director in Raymond Limited and
Pinesworth Holding Limited
Tusshar Kapoor Director.
Devarajan Chief Financial Officer
Alpa Shah Company Secretary
R.Karthik President Strategy and Business Development
Rajesh Pavithran Vice President (Marketing)
Pradeep Kuman Sarda Chairman of Sarda Group

Page 122 of 260
Indian media market
Financials
For the last financial year (end March 2006), Balaji Telefilms had total revenues of
Rs 2,890.6 million and Net profit of Rs 594.2 million; year-on-year Net profit growth
of 44%. Commissioned programming contributes 84% (2005:82%) of total
revenues.
Overseas revenues (from UAE and USA) increased 166% to Rs 29 million.
Sponsored programming revenues increased by 12% to Rs 345.6 million due to
increased demand from new regional channels (such as DD Chandana).
Figure 112) Balaji Telefilms, financials
Revenue by type
Commissioned Programming 1,600.9 1,453 1,648.2 2,349.9 13.5%
Sponsored Programming 258.7 325.77 308.4 345.6 10%
Revenue by channel
Star, Sony, Zoom, MTV, Hungama 1,601.1 1,453 1,648.2 2,349.9 13.5%
Sun TV n/a n/a 8.9 37.6 n.a
Gemini TV 128.2 204.7 158.0 117.1 -3%
Udaya TV 130.2 112.1 83.0 116.2 -3.7%
DD Network n/a 9 28.5 12.9 20%38
Surya TV n/a n/a 29.8 58.7 n.a
Revenue by language
Hindi 1,600.9 1,462 1,676.6 2,361.6 13.7%
Telugu 128.3 204.7 158 117.1 -3%
Kannada 130.2 112.1 83 117.5 -3.3%
Malayalam n/a n/a 29.8 58.7 n.a
Tamil n/a n/a 8.9 37.6 n.a
Other revenue sources 15.1 65.63 60.6 198 134%

Total Revenues 1,874.5 1,844.4 2,016.9 2,890.6 15.4%
Net profit 574 554 412.9 594.2 1.1%
Net Margin 30.6% 30% 20.4% 20.5%

Page 123 of 260
Indian media market
D.Business Standard
Activities: Publisher of business newspaper and a range of consumer

magazines
Ownership: Privately owned (controlled by Kotak Mahindra banking group)
Recent strategic developments: Financial Times acquired a 13.85% stake.
Launched a number of new magazines.
Business Standard publishes the second largest circulation English language

business newspaper, Business Standard in India. The newspaper is published six
days a week and has a strong market presence in the four major business cities
(Mumbai, Delhi, Kolkata and Ahmedabad). In addition to this, the group has
expanded into business and consumer magazines.
The company is privately owned (the largest shareholder is the financial services
group, Kotak Mahindra). The newspaper was initially established by the
Anandabazar Patrika Group in 1975. The Kotak group acquired a 51% stake in
2001 and the paper adopted a content localisation strategy. In 2004, the UK-based
Financial Times group acquired a 13.85% stake (for Rs 141 million) diluting Kotak
to 40%.
Figure 113) Business Standard, summary financials
y/e March 2002 2003 2004 CAGR

(Rs millions)
Total Revenue 355.8 360.5 411.9 7.6%

% Change 1.32% 14.25%
Net profit (loss) (64.6) (56.2) (63.5) 0.85%
% Change 13% -13%

Net Margin -18.2% -15.5% -15.4%
Business Standard newspaper

One of the leading English business dailies in India; with a daily readership of
approximately 100,000; the market leader is the Economic Times, which has a
readership of 900,000. The partnership with the Financial Times includes content
syndication and has allowed the paper to offer better international coverage than its
competitors.
The newspaper also has a website which offers both free and paid-for content.

Page 124 of 260
Indian media market
Periodicals
Business Standard publishes a variety of periodicals in the automotive, lifestyle and
business categories. Titles include Indian & Asian economy, BS Motoring, Indian
Management, Asian Management Review and The Gateway.
Figure 114) Business Standard, key shareholders
Shareholder % of capital (March 2006)
Kotak Mahindra Investment Limited 39.98%

Great Eastern Shipping Corporation 28%
Mr. Uday Kotak 4%
Financial Times 13.85%
Figure 115) Business Standard, key management and directors
Name Role
T.N. Ninan Editor and Publisher

Served as Editor of Economic Times, Business World and Executive
Editor of India Today.
Akila Urankar President and Printer and Publisher of Mumbai Edition
Sandeep Chadda Printer and Publisher of Ahmedabad Edition
Shiv Kr. Srinivasan Printer and Publisher of Hyderabad Edition
Salil Dutta Printer and Publisher of Delhi Edition
Siddhartha Gupta Printer and Publisher of Kolkata Edition
Amitava Sinha Printer and Publisher of Chennai and Banglore Edition
Rakesh Shah Vice President- Advertisement

Page 125 of 260
Indian media market
E. CyberMedia
Activities: Consumer magazines publisher and media outsourcing

services
Ownership: Listed on the BSE and NSE (large stake owned by Gupta
family)
Recent strategic developments: Entered media outsourcing sector
Aqcuired minority stake in IT publishing company in USA

Market codes: Reuters: CYBM.BO
Bloomberg: CYBM@IN
52 wk low: 50.00
52 wk high: 141.00
CyberMedia is a leading business and consumer magazines publisher. The

company’s titles are focused on sectors such as IT, new media and biotechnology.
Most titles are available in both print and online versions. Cybermedia has recently
expanded into areas such as events and exhibitions and education services.
The company was established by Pradeep Gupta in 1982. CyberMedia listed on
the Bombay and National Stock Exchanges in June 2005, but the founding Gupta
family retain a 43% stake (June 2006).
Figure 116) Cybermedia, summary financials

y/e March
2003 2004 2005 2006 CAGR
(Rs millions)
Revenue 492.7 589.7 681.3 836.4 19%

% Change 19.7% 15.5% 22.7%
EBITDA 38.3 72.3 89.9 123.2 47%

% Change 88.7% 24.3% 37%
Net profit 12.8 37.5 43.1 60.2 67.4%

% Change 193% 15% 39.6%

Page 126 of 260
Indian media market
Cybermedia launched in 1962, with the computer magazine, DataQuest. In 1991,
the company entered the events market with a technology exhibition. In 1994, the
company entered the telecoms sector with the publication of Vocie & Data
magazine. Its online offering was launched in 1996 and in 2001, the company
established an educational institute specialising in the technology field.
2006 February – Acquisition of minority stake (20%) in Sx2 Media Labs LLC
for US$1.0 million.
February – Launch of B2B monthly BPO sector based periodical “Global
Services” in joint venture (50:50) with Uk publisher, United Business
Media.
January – Launch of Asian biotechnology magazine, BioSpectrum Asia.
2005 December – Joint venture with ExpoMedia covering event management
in the telecommunication and life science sectors.
June- Listed on Bombay and National Stock Exchanges.
March 2005 – Joint ventures with US IT sector jobsite, Dice.com.
Activities
Periodicals
CyberMedia publishes 12 technology magazines, 3 consumer titles and 9 business
to business titles. Core business to business sectors are biotechnology,
information technology and telecommunications. The magazines have a
39
combined readership of 1.2 million (June 2006); the DataQuest title contributes
37.5% of total publishing revenues (2006).
Figure 117) Cybermedia, key magazine titles

Title Segment Industry Date of Readership40 % market
Launch share41
Information
DataQuest B2B 1982 114,000 51%
Technology
Information
PCQuest B2C 1987 333,000 43%
Technology
Voice & Data B2B Telecommunication 1994 105,000 68%
Living Digital (former
B2C Life Style 1996 52,000 6%
Computers@Home)
Trade and
DQ Channel India B2B 1999 n.a 8%
Business
Information
DQ Week (4 editions) B2B 1996 n.a 14%
Technology
BioSpectrum B2B Biotechnology 2003 n.a 80%
CyberMedia offers online version of all its print magazines through its
www.ciol.com portal. The website has 300,000 subscribers, 700,000 unique visitors
42
and 26 million page views per month .

Page 127 of 260
Indian media market
Television content
Launched in 1995, CyberMedia has produced 150 hours of information technology
and career development television content; it has mainly been broadcast on the
public service broadcaster “Doordarshan”.
Market Research
CyberMedia offers market research services in association with the US research
company, IDC. The company provides customised, syndicated and case study
researchin sectors such as telecommunications, information technology and
biotechnology.
Events
CyberMedia manages high technology based events, exhibitions, conventions and
seminars. The company has entered into a 10 year agreement with the UK-based
company Expomedia on international events management in the life sciences and
telecoms sectors.
Job and E-commerce portals
CyberMedia formed a joint venture with the US-based IT online recruiment
company Dice. This venture operates an IT sector job site and portal called
cyberastro.com.
Digital services
CyberMedia offers multimedia production services via Cyber Multimedia Limited.
The subsidiary offers digital products such as Internet tool kits and games for
teenagers and also produces CDROMs for third parties.
Media Education
CyberMedia in association with the training company Kaleidoscope established the
School of Convergence; this offers education and training courses in mass media
Content management
CyberMedia ventured into content management services such as BPO, digital
assets management, data conversion and production in June 2005.

Page 128 of 260
Indian media market
Financials
For the last full year (to March 2006), CyberMedia had total revenues of Rs 836.4
million and Net profit of Rs 60.2 million; year-on-year Net profit increase of 39%.
Advertising revenues contributed 60% of revenues. Growth came from publishing,
market research and online activities.
Figure 118) Cybermedia, financials

y/e March
2004 2005 2006 CAGR
(RS million)
Revenue
Publishing 309.6 384.8 559.6 34.4%
Online 29.1 39.3 55.7 38.4%
Research 61.0 83.1 121.8 41.3%
Events 80.6 62.5 22.7 -46.9%
Content services - - 14.9
Job Board services (Dice) - - 1.8
Digital 109.5 111.7 60.0 -26.0%
Other - - 16.7
Total Revenues 589.7 681.3 836.4 19.1%
Net profit
Publishing 25.8 33.5 n.d
Online 2.7 2.9 n.d
Research 3.6 4.8 n.d
Events 1.46 0.1 n.d
Content services - - n.d
Job Board services (Dice) - - n.d
Digital 3.9 1.8 n.d
Other - - n.d
Net profit 37.4 43.0 60.2
Figure 119) Cybermedia, segment analysis
Revenue (2006)
other
10.9%
events
2.7%
market
research
14.3%
online
print
6.5%
publishing
65.6%

Page 129 of 260
Indian media market

The Gupta family retain a 43% stake.
Figure 120) Cybermedia, largest shareholders
Pradeep Gupta 24.89%

Sudha Bala Gupta 9.58%
Dhaval Gupta 3.45%
Anuradha Gupta 3.15%
Kirti Gupta 1.22%
Fidelity Trustee Company Private Limited A/C 8.99%
Fidelity Equity Fund
Yukti Securities Private Limited 4.32%
Figure 121) Cybermedia, key management
Name Position
Pradeep Gupta Chief Managing Director

Rohit Chand Director
Ashok Agarwal Director, Served as Managing Director of SQL Star
K.S Mehta Director
25 years of experience in software consultancy and computer education
Shyam Malhotra Executive Director and Editor in Chief of Cybermedia Publication
Krishan Kant Tulshan Director
V.C Gupta Chief Financial Controller
Manhar Kapoor Company Secretary
Hosiediar Ghaswalla President of Marketing and Sales (Cybermedia India Limited)
E Abraham Mathew President of Online (Cyber India Online Limited)
Pankaj Nath Vice President (Cybermedia Events Limited)

Page 130 of 260
Indian media market
F. Dainik Bhaskar
Activities: Newspaper publisher

Ownership: Privately owned (controlling stake with promoter)
Recent strategic developments: Ongoing geographic expansion of Dainik Bhaskar newspaper
Considering acquisition of publisher of Prabhat Khabar
The Dainik Bhaskar publishes India’s second largest readership newspaper. The
Hindi language Dainik Bhaskar daily title has a readership of 20.9 million (growth of
20.6% on 2005). The newspaper’s core market is the state of Madhya Pradesh;
from there it has expanded its presence into Rajasthan and Punjab (in late 2006).
In 2003, the group launched the Gujarati daily, Divya Bhaskar. This title has
established a readership of 5.5 million (NRS 2006). The company also publishes a
Hindi language lifestyle periodical called 'aha zindgi' (this life).
Dainik Bhaskar is a major shareholder (alongside the Essel group) in the publisher
of the English language daily, DNA. DNA was launched in Mumbai in 2005 and is
currently expanding its geographic presence into a number of other major cities
(currently publish the business section in Indore and Ahmedabad, under the DNA
Money brand).

In May 2006, the private equity firm Warburg Pincus acquired a 7.8% stake for Rs
1.5 billion.
Figure 122) Dainik Bhaskar, key management
Name Position
Ramesh Chandra Agrawal Chairman

Sudhir Agrawal Managing Director
Girish Agrawal Director
Sanjeev Kotnala Marketing director
Pawan Agrawal Director

Page 131 of 260
Indian media market
G. Deccan Chronicle
Activities: Newspaper publisher based in Andhra Pradesh

Ownership: Listed on the BSE and NSE (large stake owned by Reddy
family)
Recent strategic developments: Entered broadcast news services and film production

Market codes: Reuters: DCHL.BO
Bloomberg: DECH@IN
52 wk low: 300.00
52 wk high: 922.00
The leading English newspaper publisher in the state of Andhra Pradesh; its
flagship title “Deccan Chronicle” is th fourth largest readership English newspaper
in India. The group’s other leading newspaper title is the Telugu language Andhra
Bhoomi. The group signed an agreement with the New York Times for publishing
The International Herald Tribune in India.
The company went public through listing on Bombay and National Stock
Exchanges in November 2004.
Figure 123) Deccan Chronicle, summary financials
(Rs millions) 200343 2004 2005 2006 CAGR
Revenue 219.4 1,223.7 1,702.8 3,522.1 150%

% Change 458% 39% 107%
Net profit 36.5 175.0 320.5 668.7 161%

% Change 379% 83% 108%
Net Margin 16.6% 14.3% 18.8% 19%
The Deccan Chronicle’s predecessor company was established in 1938. In 1977,
the Reddy family took over the publishing house and expanded into lcoal language

Page 132 of 260
Indian media market
publications with the launch of “Andhra Bhoomi.” This was followed by the launch
of 5 new editions of both the Deccan Chronicle and Andhra Bhoomi.
2006 September- FCCB offering worth US$54.02 million.
August- Investment of Rs 200 million for new Deccan Chronicle
editions.
44
August- Board of Directors approve 9-14% FII .
2005 September- Acquisition of Odyssey retail outlets for Rs 612 million.
May- Entered into Chennai newspaper market; with 100,000 copies.
May- Majority stake in Asian Age for Rs 171 million (US$4 million)
March- Launch of new Trichy and Coimbatore editions.
2004 November- Listed on Bombay and National Stock Exchanges
June- Merger of Deccan Chronicle Private Limited and Nandi Publishers
Private Limited
June- Agreement with New York Times for publication of “The
International Herald Tribune”.
2003 Launch of Nellore edition of Deccan Chronicle and Andhra Bhoomi
Activities
Deccan Chronicle Holdings activities can be categorised as follows:
Newspapers
Deccan Chronicle is the leading English newspaper in Hyderabad with total
45
circulation of 400,000 and a readership of 1.64 million (2005) . The company also
publishes the Telugu language “Andhra Bhoomi” newspaper which has a
circulation of 33,400(2H 2003). Online versions of the two newspapers are also
published.
The group acquired the Asian Age newspaper; this title is popular among the NRI
community.
Periodical
The company publishes a leading Telugu weekly periodical (circulation of 34,000).
The periodical was launched in 1977 and is second to Swati Sapari Vara Patrika
(circulation:240,000) in Andhra Pradesh.
International
Deccan Chronicle has distribution agreement with New York Times (USA) for The
International Herald Tribune.
Online
Deccan Chronicle Holdings host Cardiovalens.com life sciences based portal
providing in-depth information related to cardiology. The portal is divided into two
categories: Cardiologists and Consumers.

Page 133 of 260
Indian media market
Financials
For the last full year (end March 2006), Deccan Chronicle Holding, had total
revenues of Rs 3,308 million and Net profit of Rs 668 million, year-on-year Net
profit increase of 108%.
Figure 124) Deccan Chronicle, financials

y/e March
2003 2004 2005 2006 CAGR
Rs millions
Revenue by source
Net Sales 219.2 1,169.3 1,656.4 3,308.7 145%
Other 2.2 54.4 46.4 213.4 352%
Total Revenues 221.4 1,223.7 1,702.8 3,522.1 150%
Net profit 36.5 175.0 320.5 668.7 161%
Figure 125) Deccan Chronicle, Key acquisitions
Date Company Notes
September 2005 Odyssey Buy-out price: Rs 612 million.

Odyssey is leading retail chain offering books, toys, music and
FMCG productsin Southern India.
May 2005 Asian Age Buy-out price: Rs 171 million.
This acquisition gives Deccan access to cosmopolitan domestic
and international markets such as Mumbai, Delhi, Banglore,
Kolkata and London.
Total shareholding: 90% (previously held 23% of equity)

Page 134 of 260
Indian media market
Figure 126) Deccan Chronicle, key management and directors
Name Description
T. Venkattram Reddy Chairman

T. Vinayak Ravi Reddy Managing Director Joined the enterprise in 1988.
P.K. Iyer Director (Finance)
T Urmila Reddy Non Executive Director
T Manjula Reddy Editor-Features
K.Gangu Naidu General Manager (Finance)
K.C. Rangaswamy General Manager (Marketing)
M.J Akbar Chief Editor
The Reddy family members control approximately 70% of the equity.
Figure 127) Deccan Chronicle, key shareholdings
T Venkattram Reddy 34.96%

T Vinayak Ravi Reddy 34.96%
ILFS 4.12%
Prudential ICICI 2.8%
Karvy Stock Broking 2.65%

Page 135 of 260
Indian media market
H.Dish TV India
Activities: DTH platform operator

Ownership: Publicly listed. Majority owned by Zee Telefilms
Recent strategic IPO in January 2007.
developments:
Dish TV (currently known as ASC Enterprises) is India’s first commercial DTH

service. Launched in 2005, Dish TV is a subscription-based Pay TV offering
approximately 160 channels (both domestic and international). The company was
spun out of the Indian commercial broadcaster, Zee Telefilms in January 2007 as
part of a restructuring of the media group into four separate listed companies. The
service is targeting subscribers in urban areas, and a third of its subscribers are in
the three industrialised states of Maharashtra, Gujurat and Karnataka.
Dish TV has built up a network of over 10,000 distributors across India.
Figure 128) Dish TV, summary financials
(Rs millions) 2006 1H 2007
Revenue 818 485
Operating Profit -751 -591
Profit after tax -790 -767
Dish TV is well positioned to emerge as a leader in the Pay TV sector in India. It

has benefited from first mover advantage (among the commercial operators) and
has prefential access to the content and marketing clout of its sister companies,
Zee Entertainment and Zee News. The fourth sister company, Wire and Wireless
India is a leading cable TV operator.

Page 136 of 260
Indian media market
I. Eenadu Group
Activities: Diversified media group. The leading player in the Telugu

language market.
Ownership: Privately owned (controlling stake with promoter)
Recent strategic developments: Ongoing geographic expansion of Eenadu newspaper
The Eenadau group (Ushodaya Enterprises Ltd) is a leading Telugu language

media company with activities in publishing and broadcasting. The company’s
flagship business is the Eenadu newspaper which is the leading daily newspaper in
Andhra Pradesh (selling more copies than all its local competitors combined). It is
also a major player in local language broadcasting, with its network of 13 channels.
In February 2007, the US private equity firm, Blackstone Group acquired a 26%
stake for US$275 million.
The Eenadau group’s promoter, Ramoji Rao is currently involved in a legal dispute
with the Andhra Pradesh government. The government launched a legal action
against the group after its newspaper published a story alledging that improper land
transactions were made by the family of the Chief Minister of th state of Andhra
Pradesh.
Newspapers and periodicals

The Eenadu daily newspaper is the leading Telugu language newspaper and the
third highest readership title in India. Its 2006 audited daily readership was 13.8
million (a 21.6% increase on 2005). An online version of the newspaper is also
published in Telugu.
The company also publishes a number of Teugu language periodicals.
Figure 129) Eenadu group, periodicals

Title Genre Circulation (2005) Frequency
Annadata Farming 166,145 Monthly

Sitara Movies 25,933 Weekly
Vipula Womens 7,119 Monthly
Chatura Womens 8,300 Weekly
Television
Eenadu broadcasts a 12 local language satellite channels across India. The lead
channel is ETV Telugu (channels are also broadcast in Marathi, Kannada, Urdu,
Oriya and Gujurati).
Film production and distribution

Page 137 of 260
Indian media market
Eenadu operates one of India’s largest film studio complexes, Ramoji Film City.
The studio is built on an 1,666 acre site in Andhra Pradesh. The group also has
two other subsidiaries, Mayuri Film Distributors and Ushakiron Movies.

The group has two major shareholders: the promoter with 74% and the private
equity firm, Blackstone with 26%.
Figure 130) Eenadu group, key management

Name Position
Ramoji Rao Chairman

G Srinivas Company Secretary
I. Venkat Director of Advertising

Page 138 of 260
Indian media market
J. Entertainment Network
Activities: Radio broadcaster (under the Radio Mirchi brand), outdoor

advertising and event management
Ownership: Listed on the BSE and NSE (large stake owned by Times of
India group)
Recent strategic developments: Currently launching lareg number of new radio stations.

Market codes: Reuters: ENIL.BO
Bloomberg: ENIL@IN
52 wk low: 161.00
52 wk high: 354.90
Entertainment Network (India) ENIL is the largest commercial radio broadcaster in

India; it is also active in outdoor advertising and event management. The
company’s radio stations operate under the Radio Mirchi brand; it operates 10
stations in India’s major cities including the four metros of Delhi, Mumbai, Kolkata
and Chennai. By July 2007, the company plans to launch an additional 22 stations.
In 2005, ENIL expanded into outdoor advertising and event management.
The company is publicly listed on the BSE and NSE, but its parent company (Times
of India group) controls a 71% stake.
Figure 131) Entertainment Network, summary financials

y/e March
2002 2003 2004 2005 2006 CAGR
(Rs millions)
Total revenues 47.6 209.8 569.5 762.3 1,406.7 133%

% Change 341.2% 171.3% 33.8% 84.5%
Net profit -146.4 -402.2 -293.3 -179.3 212.4
Net Margin -307.8% -191.6% -51.4% -23.5%
ENIL spun-off from the parent company Bennett Coleman & Company Limited in
June 1999. The company ventured into radio broadcasting; with launch of Radio
Mirchi brand in Indore (2001). Regional expansion into Northern (Ahmedabad,

Page 139 of 260
Indian media market
Delhi, Kolkata) and Central (Mumbai, Pune) areas including four metropolitan cities
(2001-2003). DHHL acquired minority stake (7%) in December 2002 repurchased
by Bennett Coleman & Company Limited (October 2005). Entered into Southern
India region through FM radio services in Chennai (2003).
2006 July- Interactive visual radio service offering via mobile.

February- Listed on BSE and NSE
2005 December- Secured outdoor advertising contracts worth Rs 340 million
(US$7.4 million).
October- Inception of wholly owned subsidiary “Times Innovative Media
Private Limited”.
October- Bennett Coleman & Company Limited acquired additional
shares (11.0 million) from DHHL.
October- Acquired outdoor advertising and event management business
from parent company Times Infotainment Media Limited for Rs 5.8
million.
April- Successful bid for 25 frequencies in Phase II worth Rs 1,301
million.
Figure 132) Entertainment Network, radio stations
State City State City
Andhra Pradesh Hyderabad Madhya Pradesh Bhopal

Vijayawada Indore
Vishakapatnam Jabalpur
Bihar Patna Maharashtra Nagpur

Kolhapur
Chattisgarh Raipur Nasik
Pune
Goa Panaji Aurangabad
Gujarat Surat New Delhi New Delhi

Ahmedabad
Rajkot Punjab Jalandhar
Vadodara
Rajasthan Jaipur
Karnataka Bangalore
Mangalore Tamil Nadu Coimbatore
Madurai
Kerala Thiruvananthapuram
Uttar Pradesh Lucknow
Kanpur
Varanasi

Page 140 of 260
Indian media market
Outdoor advertising
ENIL operates outdoor advertising business through wholly owned subsidiary
Times Innovative Media Private Limited. The company leases billboards, spaces at
train stations, spaces at bus stop shelters and distributes hand bills. Leased spaces
are mainly into metropolitan cities such as Delhi, Mumbai and Kolkata and tie-ups
with public transport carrier BEST (Mumbai). Bharti, Hindustan Times, HLL, HSBC
Bank and Standard Chartered are the main advertisers.
Figure 133) Entertainment Network, Outdoor advertising space
City Description
Mumbai 1400 outdoor spaces (malls, hoardings etc) + Bus shelters

Delhi (Station) 13 metro stations and adjacent spaces
Delhi-Noida 66 Display screens along with one LED at Sahara Mall (Gurgaon).
Investment of Rs 350 million (US$ 7.6 million) on LED displays
Kolkata 80 Hoardings
Event Management
ENIL arrange and manages close to 600 big and small events (Femina, Filmfare
and Pravasi Bharti) under 360 degree brand. Majority of the events managed are
related to movie and fashion industry. Major advertisers: Samsung, Set India, State
Bank of India, Master Card and Deutsche Equities. The segment contributed 13%
of total revenues in March 2006.

Page 141 of 260
Indian media market
Financials
For the last full year (end March 2006), ENIL, had total revenues of Rs 1,406.7
million and Net profit of Rs 221.4 million, year-on-year Net profit increase of 218%.
The company’s net losses are largely due to licence and set up costs.
Figure 134) Entertainment Network, financials
y/e ; March (Rs
2002 2003 2004 2005 2006 CAGR
millions)
Revenues
Airtime sales 32.2 207.2 526.1 688.6 1,174.1 145.7%
Event 29.9 51.3 183.6 148%
Outdoor 9.5 17.0
Other 15.4 2.6 13.5 12.8 32.0 20.1%
Total revenues 47.6 209.8 569.5 762.3 1,406.7 133%
Net profit (Loss) -146.4 -402.2 -293.3 -179.3 212.4 160%
Figure 135) Entertainment Network, segment analysis
Revenue (2006)
Outdoor
1.2% Other
2.3%
Event
13.1%
Airtime sales
83.5%
Figure 136) Entertainment Network, key transactions
Date Type Company Notes
October Internal Times Infotainment Media Buy-out price: Rs 5.8 million.

2005 Transfer Limited
Outdoor advertising and event
management business

Page 142 of 260
Indian media market
Figure 137) Entertainment Network, key management and directors
Name Description
A.P. Parigi Managing Director and Chief Executive Officer

Prashant Panday Deputy Chief Executive Officer
Joined the company in August 2000.
Harvinderjit Singh Bhatia Chief Financial Officer
Joined ENIL in May 2001.
Farid Kureshi Executive Vice President (Business Head- Times OOH)
Ravi Narula Executive Vice President (Regulatory Officer )
Held Deputy Director position at All India Radio for 28 years.
Natraja Thiagarajan Chief Technical Officer
Joined the company in November 2001.
G Sharath Chandra Chief Operating Officer- ENIL (International)
Tapas Sen Executive Vice President (Programming)
Anil Fernandes Vice President (Legal and Company Secretary)
Prasad Swaminathan Vice President (People Innovation)
Figure 138) Entertainment Network, key shareholdings
Times Infotainment Media Limited 64.18%

Fidelity 9.48%
Bennett Coleman & Company Limited 7.13%
HSBC (ME) 2.64%
Macquarie 1.68%

Page 143 of 260
Indian media market
K.ETC Networks
Activities: TV channel operator

Ownership: Listed on the BSE and NSE (controlled by Zee Telefilms)
Recent strategic developments: Continued focus on regional channels
One of the leading television broadcaster in Northern India; with respect to regional
viewership. ETC Networks broadcasts three free-to-air channels in Hindi and
Punjabi languages.
ETC Networks is listed on Bombay and National Stock Exchanges; with Zee
Telefilms Limited controlling (direct and indirect holdings) close to 55% equity
(March 2006). The company was incorporated with the launch of music based
television channel “ETC Music” (now ETC Hindi) in 1999.
Figure 139) ETC Networks, summary financials
(Rs millions) 2001 2002 2003 2004 2005 CAGR
Total Revenues 477.3 350 450.2 441.0 478.7 0.07%

% Change -21.7% 29.27% -2% 8.5%
Net profit (Loss) 24.3 -4.9 141.3 157.7 72.1 31.1%

% Change -120% 2966% 11.6% -54.2%
Net Margin 5.1% -1.4% 31.3% 35.7% 15.1%
2006 May- Birla Mutual Fund shades 0.1% equity stake.

2005 April- Annual dividend (10%) approved.
2004 October- India Capital Fund Limited diluted 2.94% equity.
August- Launch of third channel “ETC Khalsa” focusing on Punjabi
culture and philosophies.
July- Plan to launch two more television channels in one to two years.
March- Merged with E-Connect India Limited (wholly owned subsidiary
of Zee Telefilms).
2002 February- Zee Telefilms acquired 48.4% for Rs 250 million.
2000 June- Launch of free-to-air ETC Punjabi channel
May- Listed on Bombay and National Stock Exchanges
1999 August- Incorporation with airing of flagship channel “ETC Music” (now
ETC Hindi).

Page 144 of 260
Indian media market
Activities
Television Channels
ETC Networks broadcasts three free-to-air channels with total viewership of 20
million households46.
Figure 140) ETC Networks, channels
Channel Language Description
ETC Hindi Hindi Music and Entertainment programmes

Punjabi language based music and general entertainment
ETC Punjabi Punjabi
programmes
ETC Khalsa Punjabi Punjabi language based religious programmes
Entertainment portal
ETC Networks operates the entertainmenttv.com website. It offers music,
Bollywood movies and free-paid download services (ring tones, wallpapers etc).
Financials
For the last full year (ending 31st March 2005), ETC Networks, had total revenues
of Rs 478.7 million and Net profit of Rs 72.1 million, year-on-year Net profit
decrease of 54%.
Figure 141) ETC Networks, financials
y/e March
2001 2002 2003 2004 2005 CAGR
(Rs million)
Revenues
Channel Revenues 476.0 348.3 435.7 425.9 466.5 -0.5%
Royalty Revenues 1.3 1.7 14.5 15.1 12.2 75%
Total Revenues 477.3 350.0 450.2 441.0 478.7 0.07%
Net profit (Loss) 24.3 -4.9 141.3 157.7 72.1 31.1%

Page 145 of 260
Indian media market
Figure 142) ETC Networks, key management and directors
Name Position
Subhash Chandra Chairman

Sandeep Goyal Managing Director
Jagjit Singh Kohli Chief Executive Officer
Vikas Gupta Chief Financial Officer
Yogesh Radhakrishnan Business Head (ETC Music)
Rabindra Narayan Business Head (ETC Punjabi)
Vijay Shah Company Secretary
Deepak Bondra Vice President (Accounts)
P R Balasubramanian Vice President (Corporate)
Ashutosh Pande Vice President (Operations)
Rajiee M Shinde Vice President (Programming ETC Punjabi)
Sam Mall Vice President (Sales)
Figure 143) ETC Networks, key shareholdings
Shareholder % of capital (December 2005)
Zee Telefilms Limited & Nominees 51.33%

Asian Satellite Broadcast Private Limited 3.09%
Birla Sunlife Trustee Co. Pvt Limited 6.22%
BSMA Limited 2.64%

Page 146 of 260
Indian media market
L. Hathway cable
Activities: Cable TV and ISP operator

Ownership: Listed on the BSE and NSE (controlled by Raheja family)
Recent strategic developments: Plans to offer interactive gaming to its cable subscribers

Market codes: Reuters: HATH.BO
Bloomberg: 7HVN@IN
52 wk low: Rs 6.47
52 wk high: Rs 39.70
One of India’s leading cable TV operators, with approximately 5 million subscribers.

The company has a large number of subscribers in Mumbai, New Delhi, Chennai,
Bangalore, Hyderabad, Pune, Mysore, Nashik and Ludhiana. The company offers
a range of additional services including Internet access (95,000 subscribers in mid-
2006) and interactive offerings (e.g. gaming).
Hathway is majority owned by the Raheja family (Star TV also has a 26% stake).
Figure 144) Hathway cable, summary financials

y/e March
2002 2003 2004 2005 2006 CAGR
(Rs millions)
Revenues 23.6 47.8 61.1 73.4 89.2 39.4%

% Change 102.5% 28% 20.1% 21.5%
Net profit (loss) 1.3 -11 -9.4 -8.6 -6.5

% Change 14.5% 8.5% 24.4%
Net margin 5.5% -23% -15.4% -11.7% -7.3%

Page 147 of 260
Indian media market
2006 July- Broadband Internet service introduced in Chandigarh
June- Launched interactive digital music based television channel.
2000 September- Star India purchased 26% equity for US$ 50 million.
1998 Rajan Raheja Group acquired BiTV and rebranded it as Hathway
Bhawani Cablenet & Dotcom Limited.
Activities
Hathway distributes up to 90 television channels through its traditional and digital
cable network in 12 cities (Mumbai, New Delhi, Chennai, Bangalore, Hyderabad,
Pune, Nasik, Ludhiana, Jalandhar, Vijaywada, Chandigarh and Mohali). Like its
peers, Hathway cable is engaged in the roll-out of its digital network and the
introduction of conditional access technology.
Hathway has been offering Internet access to its subscribers since 2005 and has
built up a subscriber base of 95,000 users. The service offers speeds of up to 512
kbps for a monthly price of Rs 275 – Rs 3000 (packages for annual unlimited usage
are also available).
Local and digital television channel

Hathway broadcasts local city and entertainment based television channels through
its cable network; its primary offering is the Cine Channel. In 2000, Hathway
formed a joint venture with Star TV to develop and offer interactive media services
over its cable network.
Figure 145) Hathway cable, channels
Channel Genre Description
Cine Channel (CCC) Movies and Launched in 1998

Entertainment Offers latest and classic movies and music on city basis
Reaches 6.6 million households
I-TV Interactive The channel is offered in three cities ( Hyderabad,
music Bangalore and New Delhi).
C-News Local news Daily city information related to events and affairs.

Page 148 of 260
Indian media market
Management
Figure 146)Hathway cable, key management and directors
Name Description
Rajan Raheja Director

K Jayaraman Managing Director and Chief Executive Officer
Akshay Raheja Director
Uza Newnham Director
Nitin Atroley Director
Satish Raheja Director
Vinayak Agarwal Director
S.N. Sharma President Operations (North)
Milind Karnik President Finance and Company Secretary
Figure 147) Hathway cable, largest shareholders
Rajan Raheja Group 55%

Star India 26%

Page 149 of 260
Indian media market
M. HT Media
Activities: Newspaper publishing, online media and radio

Ownership: Listed on the BSE and NSE (controlled by Birla Group)
Recent strategic developments: Launch of business newspaper, Mint

Market codes: Reuters: HTML.BO
Bloomberg: HTML@IN
52 wk low: Rs 71.40
52 wk high: Rs 203.50
HT Media is one of India’s largest newspaper publishing groups; its leading

publication is the Hindustan Times newspaper. Second largest English daily
newspaper publisher in India; with total readership base of 13.2 million (March
2006). The company also publishes third largest Hindi daily “Hindustan” distributing
4 editions across the country. Hindi language based monthly periodicals are also
offered in women and children genres. HT Media entered event management and
FM radio broadcasting segments (Virgin Radio as strategic investor) in 2005.
HT Media is publicly listed on the BSE, with the Birla Group controlling 68% of the
equity.
Figure 148) HT Media, summary financials

y/e March
2004 2005 2006 CAGR
(Rs millions)
Total revenue 4,214.9 6,336.9 8,153.33 39.1

% Change 50.3% 28.7
Net profit (Loss) (23.7) 273.3 372.7

% Change 36.4%
Net Margin -0.5% 4.3% 4.6%

Page 150 of 260
Indian media market
2007 February – launch of business daily, Mint in partnership with the Wall Street
Journal
2006 Ventured into radio broadcasting in alliance with Virgin Radio (United Kingdom).
2005 September- IPO on Bombay Stock Exchange.
June- Advertising and promotional partnership with Bennett Coleman &
Company Limited in Mumbai market.
May- Hindustan Times Mumbai edition introduced.
2004 October- Citicorp acquired minority stake for Rs 690 million.
March- Online version of Hindustan newspaper “Hindustandainik.com” launched.
2003 August- Henderson Private Capital’s Asia Fund purchased 15.85% stake.
January- Hindustantimes.com U.K edition introduced on web.
2002 September- Alliance with The Gallup Organisation for performance management
content sharing.
1960 Hindi monthly periodical “Kadambini” launched.
1924 January- Incorporated as family run business under Birla Group of Companies.

Page 151 of 260
Indian media market
Activities
Newspapers
HT Media publishes three daily newspapers in English and Hindi; with total
circulation of 2.3 million (January-June 2005). Hindustan Times Delhi is the largest
single edition in India; with circulation of 1.2 million (June 2006). All print
newspapers are offered in digital formats.
Figure 149) HT Media, Newspaper readership
Print Title Readership47 Language of Instruction
Hindustan Times 3.5 million English daily

Hindustan 9.72 million Hindi daily
Mint n.a Launched in February 2007
English business newspaper
Periodicals
HT Media publishes two monthly periodicals in Hindi. Both periodicals were
launched in November 1965.
Figure 150) HT Media, Periodicals
Title Circulation Language Genre Frequency

(2003)
Kadambini 30,830 Hindi Indian society & culture Monthly

Nandan 53,249 Hindi Children & teenager Monthly
Event Management
HT Media has recently ventured into event management. The company has
organised four events related to sports, leadership summit, entertainment and
business in 2005.
Radio Broadcasting
HT Media entered into an agreement with Virgin Radio Asia to broadcast FM
stations in metropolitan cities in India.

Page 152 of 260
Indian media market
Financials
For the last full year (end March 2006), HT Media, had total revenues of Rs 6,336
million, and Net profit of Rs 273 million, year-on-year Net profit increase of 1253%.
Figure 151) HT Media, financials

y/e March
2004 2005 CAGR
(Rs million)
Revenue
Advertising 3,282.2 4,935.7 50%
Circulation 836.7 1,255.8 50%
Sale of Paper and Scrap 43.7 54.2 24%
Other 52.2 91.1 74.5%
Total Revenues 4,214.9 6,336.9 50.3%
Net profit (Loss) (23.7) 273.3 1253%
Figure 152) HT Media, segment analysis
Revenue (2005)
Other
Sale of Paper 1%
0.9%
Circulation
20%
Advertising
78%

Page 153 of 260
Indian media market
Figure 153) HT Media, key management and directors
Name Position
Mrinal Pandey Chief Editor

Naveen Joshi Resident Editor
Rakesh Sharma Printer and Publisher
Suresh Balakrishnan Vice President (Media Marketing)
Y.C. Agarwal Vice President ( Uttar Pradesh and Bihar)
Girish Dutta General Manager (Media Marketing)
Rajiv Gautam Deputy General Manager ( Lucknow Edition)
Ashok K Ohri General Manager ( Media Marketing)
K.M. Joshi Circulation Manager
B.M. Chatterjee Deputy General Manager (Media Marketing)- Ranchi Edition of Hindustan
Akhilesh Singh Manager ( Media Marketing)- Ranchi Edition of Hindustan
Anil Mathur General Manager Sales
Shekhar Bhatia Editor of Delhi and Patna Edition of Hindustan Times and Hindustan
respectively
Sanjay Bahadur Assistant Vice President ( Media Marketing)
Rajiv Bagchi Chief Editor – Kolkata Edition
J.M. Saksena Deputy General Manager ( East)
Sunita Aron Resident Editor- Lucknow Edition of Hindustan
Sanjay Trehan Chief Executive ( Internet)
Birla Group and associate companies control 68% of equity.
Figure 154) HT Media, key shareholdings
The Hindustan Times Limited 67.9%

Foriegn Institutional Investors 21.86%

Page 154 of 260
Indian media market
N.India Today group
Activities: Magazine publishing, events, online media and radio

Ownership: Privately owned by the Purie family
Recent strategic developments: Entered the radio market
The India Today group (legal name: Living Media Limited) is one of India’s leading
publishing groups. The company is active in magazine and newspaper publishing,
radio, television (through an equity interest) and events.
Magazine publishing is the company’s core business and it publishes 13
periodicals in print and digital format across a wide range of interests (travel,
general news, business, architecture & design). Its flagship title is India Today
which has a total readership 15 million (June 2006). The group also has strategic
stakes in Thomson Printing Press and TV Today (television broadcasting).
The group has formed a number of partnerships with overseas publishers (The
Conde Nast Group, AOL-Time Warner and Hearst Corporation) in order to publish
Indian editions of their magazines. The group is privately owned by the Purie
family.
Figure 155) Living Media. summary financials

y/e March
2001 2002 2003 CAGR
(Rs millions)
Total Revenue 1608.1 1597.1 2158.3 15.8%

% Change -0.7% 35.1%
Net profit (loss) 29.1 (239.1) 307.1 225%
Net Margin 1.8% -14.9% 14.2%
2006 February – Successfully re-entered the radio market by winning 7 new licences.
January- sold its radio stations for Rs 1,000 million.
2002 August- Purchased Tata Group’s stake in Readers Digest.
Distribution agreement with AOL-Time Warner for Fortune periodical.
January- ActiveMedia Technology signed in as the wireless provider.
2001 Divested 15% ownership stake in Thomson Press for Rs 300 million.
1999 International tie-up with Hearst Corporation (USA) for Cosmopolitan India edition.
1975 Flagship periodical “India Today” launched

Page 155 of 260
Indian media market
Activities
Magazine publishing
Living Media is the leading periodical publisher in India; offering multilingual
editions distributed in 104 countries across the globe. The periodicals are
distributed through World Media Private Limited.
The company has developed a number of events based on magazine brands.
Figure 156) India Today, key magazine titles
Title Launch Readership Notes
India Today 1975 15 million Editions published in 5 languages (Hindi, English,

Tamil, Telugu and Malayalam).
English edition circulation: 0.46 million.
Hindi edition circulation: 0.33 million48.
Business 1992 0.94 Largest fortnightly business based periodical.
Today million49
CA Journal n.a n.a Monthly periodical published in collabration with
Institute of Chartered Accountants
Cosmopolitan 1996 0.17 million Licence agreement with Hearst Corporation (USA)
Travel plus 2002 n.a Features tourist information of all Indian strates and
cities.
Design Group 2001 n.a Bi-monthly periodical featuring snapshots of hotels,
resorts, households and hotels.
Golf Digest n.a n.a Features tips from Tiger Woods, Phil Mickelson etc.
Target readers: Golf lovers
Time/Fortune n.a n.a Distributed for AOL-Time Warner.
Fortune is published fortnightly and carriers
information about global economy and latest business
trends.
Readers 1954 3.6 million50 48 editions in 19 languages; with 100 million readers
Digest worldwide.
Monthly periodical
Today 2002 n.a Leading afternoon newspaper in New Delhi
Smart, Inc n.a n.a Information and Telecommunication sector updates,
articles and news
Teens Today n.a n.a Monthly periodical featuring music, movie review,
puzzles, games etc.
Printing
India Today offers printing services through Thomson Press. The printing press
was established in 1970 and one of the largest in Indian sub-continent. Clients
include Pearson group, Harper Collins, Oxford & Cambridge University Press and
Readers Digest.
Other activities
India Today has a majority stake (55%) in the TV Today company. TV Today
broadcasts one of India’s leading Hindi news channels, Aaj Tak.

Page 156 of 260
Indian media market
During 2006, the group sold its existing radio operations and then later second
phase of radio licencing, successfully bid for some new FM radio licences.
The group also operates a classical music publishing business.
Financials
st
For the last full year (ending 31 March 2003), The India Today group (Living
Media Ltd), had total revenues of Rs 2,158.3 million, and Net profit of Rs 307.1
million, year-on-year Net profit increase of 228.4%.
Figure 157) India Today, financials

y/e March (Rs million) 2001 2002 2003 CAGR
Total Revenues 1608.1 1597.1 2158.3 15.8%

Net profit (Loss) 29.1 -239.1 307.1 225%
Figure 158) India Today, key transactions
Date Type Company Buyer Notes
January Divestment Radio Today Value Labs, Value: Rs 1000 million.

2006 (100%) Broadcasting NDTV &
Limited Astro FM radio operations acquired by
consortium consortium lead by Value Labs,
Astro (Malaysia) and NDTV.
August Acquisition Readers Digest Living Media Purchase of Tata Group’s stake
2002 (minority in Readers Digest
stake)
December Divestment Thomson Press New York Living Media divested minority
2001 (15%) International equity for Rs 300 million.
India Fund

The company is owned by the Purie family.
Figure 159) India Today, key management
Name Position
Aroon Purie Founder and key shareholder

Anil Mehra CFO
Ashish Bagga, Chief Executive Officer,
Prabhu Chawla, Editor, India Today & Group Editorial Director,

Page 157 of 260
Indian media market
O. Indiacom
Activities: Directory publishing

Ownership: Privately owned
Recent strategic developments: New directory launches in virgin markets in India
Indiacom is a Pune-based publisher of telephone directories and a range of other

consumer and business information guides and handbooks. The company entered
the directory publishing space following a strategic investment from the Italian
directory publisher, Seat Pagine in 1988; the company was known as Sesa Seat
Information Systems Ltd and was later renamed Indiacom. Seat divested their
40% stake in 1997 and are no longer involved in the company.
In recent years, the company has expanded beyond its core print telephone
directory business into online directories and other print classified adverting based
publications.
Telephone directories
Indiacom publishes both official (under contract from the incumbent telecoms
operators) and ‘unofficial’ yellow pages directories. Key cities covered include
Pune, Ahmedabad, Hyderabad, Bhubneshwar, Faridabad-Gurgaon, Rajkot,
Vadodara, Aurangabad, Bhavnagar, Dhenkanal, Jamnagar, Jind, Junagadh,
Khargone, Rewari, Rourkela, Sambalpur and Warangal. The directories have a
combined circulation of 2.7 million copies. The official directory contracts are
typically five year contracts to publish both a residential and business listings
directory.
The company has also created a number of niche directory products targeting
various business and consumer segments. Examples include the Yellow Pages
Plus directories which are targeted at SMEs in major industrial cities (e.g.
Ludhiana, Nashik and Chandigarh) and the Homemaker’s yellow pages directory
which is aimed at housewives.
Indiacom has recently launched an operator-assisted directory enquiry service
where users can call for a range of local information.
Other publications
Indiacom publishes a range of local guides such as Neighbourhood guides, Mall
guides (with information on shopping) and tourist guides.

Page 158 of 260
Indian media market
Figure 160) Indiacom, key management and directors
Name Role
Natalino Duo Chairman

Ashok Mandore Managing Director
Abhey Yograj Director
Dr. MadanMohan Rao Director
V. Srinivasa Rao Whole- time Director

Page 159 of 260
Indian media market
P. Infomedia India
Activities: Consumer and business magazines, directories and printing

services
Ownership: Listed on the BSE and NSE
Recent strategic developments: New magazine launches and partnerships with overseas
companies

Market codes: Reuters: INFO.BO
Bloomberg: INFO@IN
52 wk low: Rs 117.50
52 wk high: Rs 234.95
Infomedia India is a leading publisher with activities in telephone directories,

business magazines, printing and outsourced publishing services. The company’s
origins are in the yellow pages and printing services sector.
The company’s predesessor firm, Tata Press was incorporated in 1955 and listed
in 1984. Todat, the company is listed on the BSE and NSE and the private equity
arm of ICICI Bank is a major shareholder.
Figure 161) Infomedia India, summary financials

y/e March
(Rs millions) 2003 2004 2005 2006 CAGR
Total Revenue 1281.88 1491.01 1310.54 1311.44 0.8%

% Change 16.3% -12.1% 0.1%
Net profit 130.79 241.93 571.8 73.88 -17.3%

% Change 85.0% 136.3% -87.1%
% Margin 10.2% 16.2% 43.6% 5.6%

Page 160 of 260
Indian media market
Activities
Infomedia’s key activities are in directories, business magazines, special interest
magazines, contract printing and publishing and direct marketing.
The copmpany started its directory operations with the publication of Yellow Pages
directories in India’s largest cities and a number of industrial directories. Today,
the product range has broadened considerably and includes reselling Google
Adwords to its advertisers.
51
Figure 162) Infomedia India, key directory-related products
Publication Description
City Guide Local directory containing comprehensive information about hotels,

places to eat, cafes, bars, entertainment centres and places of
interest.
Google Adwords Authorized reseller for Google AdWords in India.
Hotfrog.in HotFrog is a free online business directory listing India businesses.
Launched in partnership with Reed Business Information.
Indian Exporters Guide Sourcebook for international buyers for Indian manufacturers and
service providers.
Infomedia Home Guide Local directory providing comprehensive information on products and
services required for home.
Infomedia Industries Directory of manufacturers and traders.
Directory
Infomedia Office Guide Directory of office products and services.
Infomedia Yellow Pages A directory of products and services including manufacturers,
industries, dealers, retailers, showrooms and professional services.
Yellow Line Operator-assisted directory enquiries service.

Page 161 of 260
Indian media market
Figure 163) Infomedia India, business publications
Publication Frequency
Auto Monitor Fortnightly

Chemical World Bi-monthly
Electrical & Electronics Bi-monthly
Modern Food Processing Bi-monthly
Modern Machine Tools Bi-monthly (published in association with the Indian
Machine Tool Manufacturers' Association)
Modern Medicare Monthly
Modern Packaging & Design bi-monthly
Modern Pharmaceuticals bi-monthly
Modern Plastics & Polymers bi-monthly
Modern Textiles bi-monthly
Photo Imaging bi-monthly
Search bi-monthly
Special interest titles are consumer magazines which target a specific interest
group.
Figure 164) Infomedia India, special interest publications
Publication Frequency
AV Max Monthly
Home video and audio technology
Better Interiors Monthly
Interior design
Better Photography Monthly Photography
Chip Monthly
IT and technology
Cricinfo Magazine Monthly
Cricket
Overdrive Monthly Automotive
T3 - Tomorrow's Technology Monthly
Today New gadgets and technology

Page 162 of 260
Indian media market
Financials
Figure 165) Infomedia India, financials

y/e March (Rs
millions) 2003 2004 2005 2006 CAGR
Net Sales 1181.18 1259.04 1257.13 1248.45 1.9%

Other Income 100.7 231.97 53.41 62.99 -14.5%
Total Revenues 1281.88 1491.01 1310.54 1311.44 0.8%
% Change 16.3% -12.1% 0.1%
Operating Profit 255.78 454.22 256.48 188.61 -9.7%

% Change 77.6% -43.5% -26.5%
Net profit 130.79 241.93 571.8 73.88 -17.3%

% Change 85.0% 136.3% -87.1%
% Change 10.2% 16.2% 43.6% 5.6%
Figure 166) Infomedia India, key management and directors
Name Position
Prakash Iyer Managing Director

Renuka Ramnath Chairman
Jayaraman Shashidhar Chief Financial Officer
Mr. Vijay Kumar Director
Figure 167) Infomedia India, key shareholdings
Shareholder % of capital (September 2006)
ICICI Bank subsidiaries 63.35

Foreign institutions 7.40

Page 163 of 260
Indian media market
Q. Indian Express Group
Activities: Newspaper publisher

Ownership: Privately owned by the Gupta family
Recent strategic developments: Partnership with Mid-day Multimedia
One of the leading newspaper and periodical publisher in India; with strong market
presence in five regions (Maharashtra, Andhra Pradesh, Tamil Nadu, Kerala and
Karnataka). The group operates two wholly owned subsidiaries (The Indian
Express Newspaper (Bombay) and Express Publications (Madhurai)). The Indian
Express Newspaper (Bombay) publishes newspaper and periodicals in three
languages; with Mumbai as the core market. Express Publications (Madhurai) is
active in Southern India; with traditional media publications offered in three regional
languages.
The Indian Express Group is joint-stock company; with Goenka family members
controlling 100% shareholding (June 2006). The company revenues are declining
annually at 38% for the past three consecutive years (2002-2004).
Figure 168) Indian Express Group, summary financials
y/e March
2002 2003 2004 CAGR
(Rs millions)
Total Revenue 5,802.6 3,998.3 2,209.5 -38.3%

% Change -31.1% -44.7%
Net profit (loss) 144.0 (107.5) 110.6 -8.3%

% Change -174.6% 202.8%
Net Margin 2.5% -2.7% 5.0%
2005 May- The Indian Express Newspaper (Bombay) combined advertising
and promotional operations with Mid Day Multimedia for Mumbai
market.
May- Minority stake acquired by The Indian Express Newspaper
(Bombay) in Mid Day Multimedia.
1998 Spun-off into two separate wholly owned subsidiaries i.e. The Indian
Express Newspaper (Bombay) and Express Publications (Madhurai)
1961 Launched The Financial Express business daily.
1939 Ramnath Goenka acquire newspapers and publishing rights
1934 Ventured into regional language newspaper publishing (“Dinamani” title)
1931 The Daily Express re branded as “The indian Express”.
1921 First edition of English newspaper “The Daily Express” published

Page 164 of 260
Indian media market
Activities
Newspapers
The Indian Express Group publish 8 newspaper titles in five Indian States
(Maharashtra, Andhra Pradesh, Kerala, Tamil Nadu and Kerala) through its two
subsidiaries: The Indian Express Newspaper (Bombay) and Express Publications
(Madhurai) subsidiaries. Newspapers are published in English and four regional
languages (Marathi, Kannada, Tamil and Gujarati).
Figure 169) Indian Express Group, newspapers52
Title Language Frequency Readership (NRS,

2003)
The Indian Express Newspaper (Mumbai)

The Indian Express English Daily 8,41,000
The Financial Express English Daily 1,41,000
Loksatta Marathi Daily 20,19,000
The Sunday Express English Sundays 5,85,000
Express Publications (Madhurai)
The New Indian English Daily 1,127,000
Express
Kannada Prabha Kannada Daily 9,82,000
Dinamani Tamil Daily 13,04,000
The New Sunday English Sundays Circulation: 2,47,16353
Express
Periodicals
The Indian Express Group publishs film and news magazines. The periodicals are
offered in English and three regional languages (Marathi, Malayalam and Tamil).
54
Figure 170) Indian Express Group, periodicals
Title Language Genre Frequency Readership
(NRS,2003)
Indian Express Newspaper (Mumbai)

Lok Prabha Marathi General news & stories Weekly 399,000
Screen English Film & General Weekly n.a
Entertainment
Malayalam Vaarika Malayalam General news & stories Weekly 4,02,000
Cinema Express Tamil Film & General Fortnightly 1,13,000
Entertainment
Tamilan Express Tamil General news & stories Bi-Weekly 72,000

Page 165 of 260
Indian media market
Digital Media
The Indian Express Group offers official website for all the newspapers and
periodicals. Express Network Private limited manages websites for Express
Publications (Madhurai).
Figure 171) Indian Express Group, websites55
Websites Unique visitors per month
Screenindia.com 1.0 million

Indianexpress.com 2.0 million
Financialexpress.com 1.0 million
Financials
st
For the last full year (ending 31 March 2004), The Indian Express Group, had total
revenues of Rs 2,209 million, and Net profit of Rs 110 million, year-on-year Net
profit increase of 202%.
Figure 172) Indian Express Group, financials

y/e March, (Rs millions) 2002 2003 2004 CAGR
Revenues
Indian Express (Bombay) 3,755.8 2,743.6 1,235.3 -42.6%
Express Publications (Madhurai) 2,046.8 1,254.7 974.2 -31.0%
Total Revenues 5,802.6 3,998.3 2,209.5 -38.3%
Net profits
Indian Express (Bombay) 16.8 39.1 132.4 180.7%
Express Publications (Madhurai) 127.2 (146.6) (21.8)
Total Net profit (Loss) 144 (107.5) 110.6 -8.3%

Page 166 of 260
Indian media market

The Indian Express Group is owned by the Goenka family. The group is split into
two wholly subsidiaries: Indian Express Newspaper (Bombay) managed by Vivek
Goenka; and Express Publications (Madhurai) managed by Vivek Gupta.
Figure 173) Indian Express Group, key management and directors
Name Position
Shekhar Gupta Editor-in-Chief and CEO
The Indian Express Newspaper (Bombay)

Manjit Chopra General Manager and Printer and Publisher
Ratnabali Mazumdar General Manager (Space Marketing)
Gautam Chikermane Executive Editor- Mumbai Edition of The Financial Express
V. Ranganathan Printer and Publisher of The Financial Express
S.K Sharma Circulation Manager
Jyotsna Bhatnagar Deputy Resident Editor- Gujarat Edition of The Financial Express
Prashant Rama Printer and Publisher- Gujarat Edition of The Financial Express
Bhawna Somaaya Editor of The Screen
Kumar Ketra Editor of Loksatta
Pradeep Verma Executive Editor of Lok Prabha

Manoj Kumar Sonthalia Chairman and Managing Director
Sushila Ravindranath Editor
K. Sankaran Nayar Printer and Publisher
Jay Menon Deputy General Manager
Vinod Kumar Director- Marketing
V. Baskaran Vice President- Finance
V.K Bansal Vice President- Sales
K. Nandakumar Vice President- Technical
M. Gopalan Chief Manager- Advertising
S. Ganeshan Advertising Manager

Page 167 of 260
Indian media market
R.InNetwork Entertainment
Activities: Cable TV operator

Ownership: Ultimately controlled by the Hinduja family
Recent strategic developments: Roll-out of CAS technology on cable network
InNetwork Entertainment is an Indian media company whose core operation is a

cable TV operation with a network of approximately 3-4 million subscribers. The
company is the leading player in the Mumbai market and has operations in another
11 cities (including Delhi, Ahmedabad, Hyderabad, Bangalore, Belgaum, Agra,
Indore, Vadodara Mysore, Nasik and Nagpur).
IndusInd Media is a subsidiary of Hinduja TMT (HTMT), which is ultimately
controlled by the Hinduja family (they control 67% of the equity). HTMT is listed on
the BSE and NSE and to date, has been active in both the media sector and the
provision of IT and outsourcing services.
HTMT has a number of other subsidiaries active in the media sector:
In2cable It provides ISP services to both residential and business
customers. In 9 cities (including Mumbai and Delhi), it provides broadband
Internet services.
In Network. Film production and distribution
CVO. A leading Hindi language movie channel
In TV. Operates a number of local cable TV channels. The company is
planning to launch a hindi language news channel (February 2007).
Shop 24 Seven. Offline and online e-commerce offering.
InNetwork Entertainment is rolling out conditional access (CAS) technology on its
cable TV network. As part of the CAS roll-out the cable network has been re-
branded as INDigital. In order to icentivise its 2,400 local cable franchisees (LCOs)
to market its enhanced offering, InNetwork Entertainment has offered them equity.
Figure 174) InNetwork Entertainment, summary financials
y/e March Rs millions (2006)
Cable 1,380
Content 170
ISP services 50

Page 168 of 260
Indian media market
Figure 175) InNetwork Entertainment, key management and directors
Name Role
Ravi Mansukhani Managing Director

Anand Giridhar Vice President (Movies)
Sumeet Das Senior Manager (Brand & Logistics)
Sathesh Kumar Vice President (Finance)
Viveck Vaidya Senior Manager (Marketing)
Guruprasad Kulkarni Vice President (Technical)
Figure 176) InNetwork Entertainment, key shareholdings
Shareholder % of capital (October 2006)
Hinduja group and associate companies 67%

Intel Capital 3%
Kudelski 2%

Page 169 of 260
Indian media market
S. Info Edge
Activities: Online classified media (jobs, property and matrimonials)

Ownership: Listed on the BSE and NSE (controlling stake with CEO)
Recent strategic developments: IPO in late November 2006

Market codes: Reuters: INED.BO
Bloomberg: INED@IN
52 wk low: Rs 480.00
52 wk high: Rs 755.00
Infoedge is India’s leading pure online company. Its operates webites targeting the
recruitment, matrimonials and property sectors. The company is also active in the
recruitment services sector through its Quadrangle recruitment consultancy
business. The company was established by its current CEO in the 1997.
The company underwent an IPO in November 2006.
Figure 177) Info Edge, summary financials
y/e March (Rs millions) 2005 2006 % Change
Revenue 441 824 86.8%
Net profit 3 133 4333%
% Margin 0.7 16.1
2006 November – IPO on the BSE and NSE
2005 September – launch of property site, 99acres.com
2004 Acquired matrimonials website, Jeevansaathi.com
2000 Acquired recruitment services business, Quadrangle

Page 170 of 260
Indian media market
Activities
Infoedge’s core activities are in the provision of online services to the recruitment,
matrimonials and property sectors, through three websites.
Figure 178) Info Edge, websites
Web site Description
Naukri.com Most visited recruitment site

Carries vacancies and also has a CV database
13.4 million unique visitors (March 2006)
Jeevansathi.com Matrimonials website (No. 3 player in the market)
203,500 profiles
99acreas.com Property site
Launched in September 2005.
Still an emerging sector in India, with minimal revenues
The company has established a network of 45 offices across india, ensuring that its
advertising sales team can market effectively to local businesses.
Financials
Figure 179) Info Edge, financials
y/e March 2005 2006 % Change
Naukri.com 400 726 81.5

Quadrangle 39.8 53 33.2
99acreas.com 0 0
Jeevansathi.com n.m 44
Total revenues 440 824 87%
EBITDA 129 233
% Margin 29.4 28.2

Page 171 of 260
Indian media market
Figure 180) Info Edge, key management
Name Position
Sanjeev Bikhchandani CEO and Cofounder

Hitesh Oberoi COO
Ambarish Raghuvanshi CFO
Sanjeev Dalal CTO
Figure 181) Info Edge, key shareholdings
Founders 54.6%
Foreign institutions 13.25%

Page 172 of 260
Indian media market
T. Inox Leisure
Activities: Multiplex operator

Ownership: Listed on BSE and NSE (controlling stake with promoter)
Recent strategic developments: Merger with Calcultta Cine

Market codes: Reuters: INOL.BO
Bloomberg: INOL@IN
52 wk low: Rs 95.15
52 wk high: Rs 252.70
Inox leisure is a leading multplex operator with 13 multiplexes in 12 cities. Inox has
secured a preferential access partnership with the Indian Pantaloon Retail group;
this has given it first option in shopping malls developed by Pantaloon. The
companies merger with Calcutta Cine will expand its number of multplexes by 9
(largely in Bengal and Assam).
The company is listed on the BSE and NSE.
Figure 182) Inox Leisure, summary financials
y/e March (Rs millions) 2004 2005 2006 % Change
Revenue 299.1 602.6 1,021 85%
Net profit 23.4 59.4 175 173%
% Margin 7.8% 9.9% 17.1%

Page 173 of 260
Indian media market
2007 January – New multiplex opened in Chennai
2006 June – Merger with Calcutta Cine Pvt Ltd
February – IPO on BSE and NSE
2002 First multiplex opened in Pune
2001 Inox lesiure established
Figure 183) Inox Leisure, multplexes
Multiplex Location
Garuda Mall Bangalore

Racecourse Circuit Road Baroda
Radhakrishnan Salai Chennai
Rink Mall Darjeeling
Panaji Goa
Sapna Sangeeta Road Indore
Vaishali Nagar Jaipur
Forum Kolkata
Salt Lake City Kolkata
Indira Vihar Kota
CR2, Nariman Point Mumbai
Poonam Mall Nagpur
Bund Garden Road Pune
INOX Leisure is continuing to develop new multiplexes in Mumbai (Borivali),

Bharuch, Vijaywada, Lucknow, Faridabad, Jaipur, Kolkatta, Hyderabad, Raipur,
Bangalore, Nagpur, Jodhpur and Pune.
Figure 184) Inox Leisure, key management
Name Position
Mr. Pavan Jain Chairman

Manoj Bhatia CEO
Alok Tandon COO
The promoters (Pavan Jain and his associates) control 66% of the equity.

Page 174 of 260
Indian media market

Page 175 of 260
Indian media market
U.Jagran Prakashan
Activities: Newspaper publishing, magazines, outdoor advertising and

radio
Ownership: Listed on the BSE and NSE (controlling stake with promoter)
Recent strategic developments: Entry into radio market

Market codes: Reuters: JAGP.NS
Bloomberg: JAGP@IN
52 wk low: Rs 132.00
52 wk high: Rs 379.50
Jagran Prakashan is the publisher of the largest readership newspaper in india,

Dainik Jagran; it has a daily readership of 21 million. Dainik Jagran is published in
Hindi and distributed in 18 editions across the country (Uttar Pradesh is its core
market). The company is also active in magazines, outdoor advertising and event
management.
In 2006, Jagran Prakashan underwent an IPO on the BSE and NSE. The UK
newspaper group, Independent News & Media has a 20.85 stake in the group and
there are plans to publish its UK title, The Independent in India.
Figure 185) Jagran Prakashan, summary financials
Total Revenue 2,562.8 3,127.8 3,774.7 4,835.3 23.5%
% Change 22% 20.6% 28.1%
Net profit (Loss) 180.1 153.6 15.3 317.0 20.7%

% Change -14.7% -90% 1971%
% Margin 7.0% 4.9% 0.4% 6.5%

Page 176 of 260
Indian media market
2006 August – Negotiations to enter English newspaper market through a partnership

with The Pioneer fail
February- Listed on National and Bombay Stock Exchanges
2005 SMS (7272) service introduced on mobile handsets in India.
Purchase of 89% stake in Jagran Research Centre.
2004 December- Independent News & Media Plc acquire 26% stake for Rs 1,500
million.
2003 September- Launch of Jagran’s Panipat and Bhagalpur editions
1997 Jagran on web (www.jagran.com)
1975 July- Renamed and incepted as Jagran Prakashan
1942 Incorporated as Jagran Limited by Puran Chandra Gupta (Freedom Fighter)
Activities
Newspapers
Jagran Prakashan publishes the Dainik Jagran, India’s highest readership daily
newspaper. The paper was established in 1942 and now has a daily readership of
21 million. Readership has more than doubled from a level of 9.6 million in 2000;
this has largely been driven through geographic expansion and the launch of many
new local editions. Key to this expansion has been the company’s network of 29
printing centres across North India. The title has a strong market position in the
North Indian Hindi speaking states, especially Uttar Pradesh, Punjab, Uttaranchal,
Haryana and Himachal Pradesh.
Its online version, jagran.com is a leading Hindi language news website. The
comnpany has also launched a number of mobile-based news services.
Periodicals
Jagran Prakashan publish monthly and yearly periodicals in Hindi. The periodicals
56
target Hindi readers in small cities .
Figure 186) Jagran Prakashan, Periodicals
Title Language Genre Frequency
Jagran Varshiki Hindi Yearly domestic and international news and Yearly
events
Jagran Sakhi Hindi Women & society Monthly
Outdoor Advertising and Event Management

Jagran Prakashan provides outdoor advertising (Jagran Engage) and event
management services (Jagran Solutions). Jagran Engage owns approximately 560
display sites across 6 cities and has leased an additional 2,000 sites.

Page 177 of 260
Indian media market
Financials
For the last full year (end March 2006), Jagran Prakashan, had total revenues of
Rs 4,835 million, and Net profit of Rs 317 million.
Figure 187) Jagran Prakashan, financials

Revenues by Type
Advertising 1,556.7 1,994.9 2,330.1 3,064.7 25.3%
Circulation 980.2 1,101.6 1,384.4 1,603.7 17.6%
Other 25.9 31.1 60.1 166.9 84.9%
Total Revenues 2,562.8 3,127.8 3,774.7 4,835.3 23.5%
Net profit (Loss) 180.1 153.6 15.3 317.0 20.7%
Figure 188) Jagran Prakashan, segment analysis
Revenue (2006)
Other
3%
Circulation
33%
Advertising
64%

Page 178 of 260
Indian media market
Figure 189) Jagran Prakashan, key management and directors
Name Position
Sanjay Gupta Editor

Mahendra Mohan Gupta Executive Chairman
Yogendra Mohan Gupta Group Chairman
Shailesh Gupta Advertising Director
Shailendra N. Jaitly Corporate General Manager Advertising
A.S Raghunath Corporate General Manager- Brand Development
Figure 190) Jagran Prakashan, key shareholdings
Gupta family 52.1%

Independent News & Media Plc 20.80%

Page 179 of 260
Indian media market
V. Jasubhai Group
Activities: Business media (magazines, online, events)

Ownership: Privately owned by jasubhai family
Recent strategic developments: New title launches
Jasubhai Group is a parivately owned company with activities in the media,

engineering and technology sectors. The group’s media activities consist of
business periodicals and websites, exhibitions (largely in the pharmaceuticals
sector) and marketing services (e.g. direct marketing and event management).
Figure 191) Jasubhai Group, business magazines
Sector Title Notes
Chemical & Process Chemical Engineering World Launched in 1969

Industry Also publish a year book
Chemical Products Finder Product directory
Construction and Indian Architect & Builder Launched in 1988

Architecture (IAB) Readership: 300,000
Energy & Exploration Offshore World Oil and gas exploration
IT Digit Launched in 2001

Circulation: 120,000
Network Computing Published in association with CMP Media
Computer Reseller News Published in association with CMP Media
Reaches 20,000 organisations
Skoar! Games magazine
Manufacturing Industry 2.0 Technology management magazine for

Technology industrial manufacturing and engineering
companies
Pharma & Pharma Bio World Bi-monthly magazine aimed the

Biotechnology pharmaceutical and biotechnology
sectors.

Page 180 of 260
Indian media market

The company is owned by the Jasubhai family.
Figure 192) Jasubhai Group, key management and directors
Name Position
Maulik Jasubhai Director and Chief Executive Officer

R J Vakil Chief Financial Officer
L. Subramanyan CEO - Jasubhai Digital Media
Vijay Adhikari Executive Vice President - Operations
Bibhor Srivastava Vice President Sales (Media and Marketing Services)

Page 181 of 260
Indian media market
W. K Sera Sera Productions
Activities: Film production and distribution

Recent strategic developments: Acquisition of 80% stake in Lemon Entertainment

Market codes: Reuters: KSER.BO
Bloomberg: GPM@IN
52 wk low: Rs 19.00
K Sera Sera is a film production and distribution company. It produces and

distributes Bollywood movies, through a number of joint venture agreements with
various film producers, directors and multiplex operators. K Sera Sera is listed on
the BSE and NSE.
Figure 193) K Sera Sera, summary financials
RS in Millions 2004 2005 2006 CAGR
Total Revenue 243.2 375.1 577.7 54.1%

% Change 3953% 54.2% 54%
Net profit (Loss) 35.7 34.0 90.7 59.4%

% Change 11800% -4.7% 166.7%
Net Margin 14.7% 9.1% 15.7%

Page 182 of 260
Indian media market
2006 December – Acquisition of 80% stake in Lemon Entertainment (Broadcaster of
Lemon TV)
October – Established subsidiary in Singapore
September - 5 year production and distribution agreement with the UK-based film
company, Eros International
January- Production joint venture agreement with Percept Pictures
2005 October- Production joint venture agreement with Sohail Khan Productions.
June- Acquisition of distribution rights of 4 medium and big budget Hindi films
February- Acquired distribution rights for film “Black” in Hyderabad and
Aurangabad regions.
2004 December- Ventured into telelvision production with creation of Twenty twenty
brand.
February- Joint production of 9 films with PVR Pictures
2003 December- Production joint venture agreement with Sahara One Media &
Entertainment Limited for 10 film titles distributed under “Sahara” brand worth Rs
267 million.
February- Production joint venture agreement with Varma Corporation.
2002 October- Divested paper business and entered the media sector.
K Sera Sera brand launched.
1995 September- Incorporated as paper manufacturing and processing company under
“Garnet Paper Mills”.
Activities
Film Production
K Sera Sera produces low to big budget Hindi films. Its core offering is low budget
films (produced in collabration with Varma Corporation Limited). In 2005, the
company produced and released 5 Hindi films.
Television production
K Sera Sera ventured into Hindi language production in 2005, with 2 general
entertainment shows for the Sahara One channel.
Film Distribution
K Sera Sera distributes Hindi films through a range of distribution partners (RGV,
Kss Distribution, PVR). In 2005, the company distributed 6 films across the country.

Page 183 of 260
Indian media market
Financials
For the last full year (end March 2006), K Sera Sera, had total revenues of Rs 577
million, and Net profit of Rs 91 million, year-on-year Net profit increase of 166%.
Figure 194) K Sera Sera, financials

y/e March (Rs millions) 2004 2005 2006 CAGR
Revenues by Type
Film Production and Distribution 239.7 366.1 377.9 26%
Third party Distribution - 1.6 137.4
Television Production - 6.8 62.1
Other 3.4 0.5 0.3
Total Revenues 243.2 375.1 577.7 54%
Net profit (Loss) 35.7 34.0 90.7 59%
Figure 195) K Sera Sera, segment analysis
Revenue (2006)
Television
production Other
11% 0%
Third party
Distribution
24%
Film Production
and Distribution
65%

Page 184 of 260
Indian media market
Figure 196) K Sera Sera, key management
Name Description
Ashok Pamani Non executive Chairman

Parag M Sanghavi Managing Director
Ramesh Pamani Non Independent and Non Executive Director
Raj Sital Das Motwani Non Independent and Non Executive Director
Ashok Gulabrai Gandwani Non Independent and Non Executive Director
Rajesh Pavithran Chief Operating Officer (Twenty Twenty)
Hamavvand Chief Production Controller (Twenty Twenty)
Kacon Sethi Director (Twenty Twenty)
Figure 197) K Sera Sera, key shareholdings
Promoters and management 22.3%

Foriegn Financial Institutions 22.36%

Page 185 of 260
Indian media market
X. Malayala Manorama
Activities: Newspaper publishing, magazines, radio and television

Ownership: Privately owned by the Mammen Mappillai family.
Recent strategic developments: Entry into radio market
Malaya manorama is leading newspaper and magazine publisher in the state of

Kerala. The Malayalam Manorama title, published in the Malayalam language has
the sixth largest readership in India at 8.4 million (NRS, 2006). The company also
publishes weekly, fortnightly and monthly periodicals in three languages. Vanitha is
the fourth highest readership magazine published in the Malayalam language. The
company has recently entered the television and radio markets in Kerala.
Malayalam Manorama is privately owned by the Mammen Mappillai family
.
Figure 198) Malayala Manorama, summary financials
y/e March (Rs millions) 2002 2003 2004 CAGR
Total Revenue 2,652.1 2,882.6 3,057.2 7.4%

% Change 8.7% 6.1%
Net profit (loss) 73.1 142.5 156.3 46.2%

95% 9.7%
Net Margin 2.7% 4.9% 5.1%
2006 Launched news channel

2005 December- Five editions of Malayala Manorama launched in Middle East
countries (Bahrain, Dubai etc).
2004 November- English periodical featuring men’s issues to be l;aunched with initial
circulation of 50,000 copies.
October- Venture into Malayalam language based television channel broadcasting
segment.
2003 June- Malayala Manorama on web
Newspaper
Malayala Manorama publishes Malayalam language based daily newspaper; with a
daily readership of 8.4 million (NRS, 2006). The newspaper is mainly read in the
state of Kerala; it also has an online version at manoramaonline.com.

Page 186 of 260
Indian media market
Periodicals
Malayala Manorama publishes weekly, forthnightly and monthly periodicals in
Malayalam, Hindi and English languages. The periodicals are offered in various of
genres ranging from general news, entertainment, women and society issues.
Figure 199) Malayala Manorama, Key publications
Titles Genre Language Frequency Readership (2006)
Malayala
General Malayalam Weekly 2.35 million
Manorama Weekly
The Week News English Weekly 1.41 million57
Balarama Children Malayalam Weekly 2.52 million
Malayalam &
Vanitha Women Forthnightly 4.11 million
Hindi
Karshakaree Agriculture Malayalam Monthly n.a
Broadcasting
The company is active in both television and radio broadcasting. In 2006, the
group launched a news television channel. In the radio sector, the group won 3 FM
licences in Kerala (cities of Kozhikod, Trissur and Kannur).
Since its establishment in the 1880s, the group has been owned by the Mammen
Mappillai family.
Figure 200) Malayala Manorama, key management and directors
Name Position
K.M Mathew Chief Editor

Philip Mathew Managing Editor
Mammen Varghese Printer and Publisher ( Kottayam, Kochi, Kozikod, Mumbai, Chennai and
Banglore Editions)
Jacod Mathew Printer and Publisher (Thiruvananthapuram, Thrissur, kannur, Palakkad,
Kollam and Malappuram Editions
T.M Mathews General Manager ( Marketing)
M. Rajagopalan Nair General Manager ( Circulaion)

Page 187 of 260
Indian media market
Y. Mid-day Multimedia
Activities: Newspaper publishing, radio and online

Recent strategic developments: Launch of radio operations

Market codes: Reuters: MIDD.BO
Bloomberg: MIDM@IN
52 wk low: Rs 94.80
Mid-day Multimedia is a leading Mumbai-based newspaper publisher; it has

recently expanded into commercial radio. Thr group publishes the a leading
English daily tabloid newspaper, Mid day.
Mid-day Multimedia is listed on the BSE and NSE (the Khalid Ansari family have a
controlling stake of 51%)
Figure 201) Mid-day Multimedia, summary financials
Total Revenue 1.155.6 1,170.3 1,278.9 1,238.8 2.3%

% Change 1.3% 9.3% -3.1%
Net profit (Loss) 30.1 90.7 61.0 80.9 38.6%

% Change 201% -32.7% 32.6%
Net Margin 2.6% 7.7% 4.8% 6.5%

Page 188 of 260
Indian media market
2006 December – Agreement with Times of India group to share printing and
distribution in Mumbai
January- BBC Worldwide Holdings BV to invest Rs 318.5 million in Mid-Day’s
radio business.
January- Minority shareholder “Rakesh Jhunjhunwala” to invest Rs 100 million in
Mid day radio.
2005 August- Board of Director approve foreign institutional investment to 26%.
June- Bennett Coleman & Company Limited divested 8.45% equity.
May- Indian Express Group purchase 10% stake for Rs 255.4 million.
May- Advertising sales agreement with “The Indian express Newspaper (Bombay)
Group to improve operational efficiency.
2004 October- Bennett Coleman & Company Limited acquired 8.55% equity for Rs 120
million.
June- Launched morning newspaper “The Morning Quick”.
2001 February- IPO on Bombay and National Stock Exchanges
1995 February- Gujarati language edition of Mid Day introduced
1979 Ventured into English daily newspaper segment with Mid Day edition in Mumbai
1938 Incorporated as paper manufacturing and processing business.
March- Divested paper business and launched first newspaper “Inquilab”.
Activities
Mid Day Multimedia publishes daily newspapers in English, Urdu and Gujarati. The
flagship title is the English edition of Mid-day and the group is rolling out this titles
into other major cities (including Bangalore in 2006).
Figure 202) Mid-day Multimedia, titles
Title Language Frequency Readership
Mid Day English Daily 730,000 (Mumbai)

Gujurati Mid Day Gujarati Daily 93,000
The Inquilab Daily Urdu Daily n.a
Sunday Mid Day English Sundays 402,000
The Morning Quick English Daily n.a
Metro English Daily Free newspaper

Page 189 of 260
Indian media market
Radio Broadcasting
Mid-day Multimedia’s radio stations operate under the Radio One brand. The
BBc;s commercial arm, BBC Worldwide is a 20% shareholder in the radio
operation.
Financials
For the last full year (end March 2006), Mid Day Multimedia, had total revenues of
Rs 1,239 million, and Net profit of Rs 81million, year-on-year Net profit increase of
33%.
Figure 203) Mid-day Multimedia, financials

Revenues
Newspaper Publishing
Circulation revenues 138.0 146.2 164.4 162.9 5.6%
Advertising revenues 711.5 751.5 825.3 867.8 6.8%
Job work revenues 47.7 51.0 4.4 3.0 -60%
Total newspaper revenues 897.2 948.7 1,034.6 1,060.0 5.7%
Radio 25.3 37.5 60.7 86.6 50.6%

Outdoor Advertising 233.1 184.1 183.6 92.2 -26.3%
Total Revenues 1.155.6 1,170.3 1,278.9 1,238.8 2.3%
Net profit 30.1 90.7 61.0 80.9 38.6%
% Margin 2.6% 7.8% 4.8% 6.5%
Figure 204) Mid-day Multimedia, segment analysis
Revenue (2006)
Outdoor
advertising
Radio 8% New spaper -
7% Circulation
13%
Other
0%
New spaper -
Advertising
72%

Page 190 of 260
Indian media market
Figure 205) Mid-day Multimedia , key transactions
Date Type Buyer Notes
January 2006 Investment BBC Worldwide Investment of Rs 318.5 million in the radio
subsidiary of Mid-day
Radio Mid day West (India) Private
Limited is a subsidiary of Mid Day
Multimedia
June 2005 Divestment Times of India SoId sold its 8.45% of its stake
May 2005 Acquisition Indian Express Acquired 10% stake for Rs 255.4 million.
group
October 2004 Minority Stake Times of India Acquired 8.55% for Rs 120 million

Page 191 of 260
Indian media market
Figure 206) Mid-day Multimedia, key management and directors
Name Position
Khalid Ansari Chairman

Tarique Ansari Managing Director
Cyriac Mathew Chief Operating Officer
Manajit Ghoshal Chief Financial Officer and Vice President-Corporate Services
Rajesh Tahil Chief Executive (Radio One 92.5 FM)
Avirook Sen Editor
Khalid Ansari (founder) and his family control 52% of the equity.
Figure 207) Mid-day Multimedia, largest shareholders
Promoters 51.92

Page 192 of 260
Indian media market
Z. Mukta Arts
Activities: Film production and distribution

Recent strategic developments: No major developments

Market codes: Reuters: MUKR.BO
Bloomberg: MUKR@IN
52 wk low: Rs 79.70
Mukta Arts is one of the longest established Hindi film production companies in
India. Its is controlled and managed by the leading director Subhash Ghai. Mukta
Arts produces and distributes Hindi films in India and overseas markets. The
company also offers media education and production services.
Mukta Arts went public on National and Bombay Stock Exchanges in September
2000.
Figure 208) Mukta Arts, summary financials
(Rs millions) 2003 2004 2005 2006 CAGR
Total Revenues 427.4 313.7 511.6 436.3 0.7%

% Change -26.6% 63.1% -14.7%
Net profit (Loss) 71.3 33.6 -172.2 -56.4

% Change -53% -612.5% 67.2%
Net Margin 16.7% 10.7% -33.6% -13%

Page 193 of 260
Indian media market
2005 Ventured into low budget film producing with inception of wholly owned subsidiary
“Mukta SearchLight Films”.
2003 September- Acquisition of Star Jack for Rs 0.1 million.
Long-term investment of Rs 43.2 million in 50:50 joint venture with Adlabs.
2001 Film broadcasting rights sold to SET India Private Limited (Sony TV) for Rs 161
million.
Cinema distribution rights of big budget film “Yaadein” sold for Rs 84.4 million.
2000 September- Listed on National and Bombay Stock Exchanges
Windmill Holdings purchased 8 film title library for US$ 3.13 million
1982 September- Incorporated by Subhash Ghai
Activities
Mukta Arts produces small and big budget Hindi films. The company also
distributes its own and third party films in India and overseas.
It also produces television content for channels such Zee and Sony.
Facilities services
Mukta Arts provides pre and post production services (acoustic, graphics, special
effects etc) through a wholly owned subsidiary, Audeus studio.
Mukta Arts offer film direction, screenplay, writing courses through its Whistling
Woods education centre in Mumbai.
Financials
st
For the last full year (ending 31 March 2005), Mukta Arts, had total revenues of Rs
511 million, and Net loss of Rs 172 million, year-on-year revenue increase of 63%.
Figure 209) Mukta Arts, financials
y/e; March (RS million) 200158 200359 2004 2005 CAGR
Revenues
Music 81.4 11.1 1.5 29.0 -29%
Films 241.9 63.8 23.3 252.0 1.4%
TV Serials and Videos - 5.3 3.8 - -
Old Films 339.3 286 158.3 170.3 -20.5%
Equipment Hiring revenues 49.0 39.7 29.8 28.6 -16.4%
Other revenues 119.8 101.7 96.9 31.5 -35.8%
Total Revenues 503.2 427.4 313.7 511.6 0.5%
Net profit (loss) 138.9 71.3 33.6 (172.2) -40.8%
% Margin 27.6% 16.6% 10.7% -33.6%

Page 194 of 260
Indian media market
Figure 210) Mukta Arts, key transactions
2003 Acquisition Star Jack Mukta Arts Purchase price: Rs 0.1 million
(100%)
Incorporated in Isle of Man and
into film distribution.
2003 Joint Venture Mukta Arts Adlabs Investment of Mukta Arts: Rs
(50:50) 43.2 million. Expansion of digital
film technology.
2001 Music Rights Mukta Arts film Universal Price Paid: Rs 25 million.
Acquisition “Badhai Ho Music India
(100%) Badhai” Film flopped at the box office.
2000 Film library Mukta Arts (8 Windmill Purchase Price: US$ 3.13
Acquisition titles) Holdings million.
Acquired films broadcasted on
South East Asian television
channels.

Subhash Ghai and family members control 70% of equity (March 2006).
Figure 211) Mukta Arts, key management
Name Position
Subhash Ghai Chairman and Managing Director

Mukta Ghai Director
Meghna Ghai Puri Director
Vashdev Bajaj Director
Anil Harsh Director
Manmohan Shetty Director
Parvez Farooqui Director
Ravi B Poplai Company Secretary and Compliance Officer
Vijay Choraria Director

Page 195 of 260
Indian media market
AA. NDTV
Activities: News television broadcasting

Recent strategic developments: Entered radio market

Market codes: Reuters: NDTV.BO
Bloomberg: NDTV@IN
52 wk low: Rs 128.65
52 wk high: Rs 354.10
NDTV is primarily a television broadcaster focused on the business and news

markets. It has recently acquired a minority stake in a radio broadcaster. The
company’s main channel is NDTV24X7, which is an English language news
channel. The company began life as a provider of new content to other channels.
The company was founded by Prannoy Roy and is listed on the BSE and NSE.
Figure 212) NDTV, summary financials

Total Revenue 1,054.7 626.3 1,565.9 1,941.5 22.5%

% Change 7.3% -40.6% 150% 24%
Net profit (Loss) 230.7 (514.8) 291.8 (62.5) -147%

% Change -0.8% -323% 157% -121%
Net Margin 21.8% -82% 18.6% -3.2%

Page 196 of 260
Indian media market
2006 January- Ventured into FM radio broadcasting through acquisition of Radio Today
Broadcasting Limited in collabration with Value Labs and Astro.
2005 Ventured into South East Asian television broadcasting segment in collabration
with Astro (Malaysia). Launch of two news channels.
January- English business news channel “NDTV Profit” launched
2004 May- Listed on National and Bombay Stock Exchanges
2003 Entered television broadcasting through launch of NDTV 24X7 and NDTV India
1997 Content provider for Star News and BBC India
1988 NDTV incorporated as news and current affairs based television content provider
for Doordarshan.
Activities
Television Broadcasting
NDTV broadcasts one business and two general news based television channels in
India. In joint venture with Astro, the company launched two general news channels
in South East Asia (2005).
Figure 213) NDTV, channels
Channel Market share Notes
NDTV 24X7 39.0%60 English News channel

Reach:12.7 million.
Highest market share in Southern India (49.18%)61
NDTV India 20.3%62 Hindi News channel
Reach: 25.2 million63.
Highest market share in Eastern India (24.3%)
NDTV Profit 15.4% Business news channel
Reach: 1.6 million.
Highest market share in Northern India (23.8%)
Radio Broadcasting
NDTV ventured into FM radio broadcasting through the acquisition of a 20% stake
in the Red FM radio business from the India Today Group. The acquisition was
made as part of a consortium (including Astro of Malayasia and Value Labs). Red
FM has radio operations in Mumbai, Kolkata and Delhi.

Page 197 of 260
Indian media market
Financials
For the last full year (end March 2006), NDTV, had total revenues of Rs
1,941million, and net loss of Rs 62.5 million, year-on-year net loss increase of
121%.
Figure 214) NDTV, financials
y/e March (RS million) 2003 2004 2005 2006 CAGR
Revenues by Type
Advertising - 555.0 1,438.6 1,718.7 76%64
Business Income65 25.2 48.6 90.1 194.2 96.2%
Others 24.5 22.7 37.2 28.5 5.1%
Content 1,005.0
Total Revenues 1,054.7 626.3 1,565.9 1,941.5 22.5%
Net profit (Loss) 230.7 (514.8) 291.8 (62.5)
Figure 215) NDTV , key transactions

January Divestment Radio Today Value: Rs 1000 million.

2006 (100%) Broadcasting
Limited FM radio operations acquired by consortium lead
by Value Labs, Astro (Malaysia) and NDTV.

Page 198 of 260
Indian media market
Figure 216) NDTV, key management and directors
Name Description
Dr. Prannoy Roy Chairman and Wholetime Director

Served as Economic Advisor to Government of India (Ministry of
Finance) from 1985-1987
Smeeta Chakraborti Chief Producer
Radhika Roy Managing Dirctor
Worked as print journalist for ten years with Indian Express and India
Today.
P.C Jameskutty Chief Financial Officer
KVL Narayan Roy Wholetime Director
Joined NDTV in 1995.
Previously worked for Indian Revenue Services (1979-1994)
Rajdeep Sardesai Managing Editor
I.P Bajpai Senior Editorial Advisor
Rajiv Mathur Company Secretary
Figure 217) NDTV, key shareholdings
Promoter 54.78%
Foriegn Institutional Investors 3.04%

Page 199 of 260
Indian media market
BB. Nimbus Communications
Activities: Sports content production and broadcasting

Ownership: Privately owned (Promoter and private equity)
Recent strategic developments: Launch of sports channels
Nimbus Communications is a leading Indian sports television content provider. The

company produces sports programming for a range of sports, including cricket,
hockey and soccer. In 2006, the company launched a sports TV channel called
Neo Sports; it has plans to launch an additional two channels in the next 18
months.
Nimbus Communications is owned by its management and a number of private
equity funds (including 3i).
In March 2006, the company won a contract for exclusive broadcast rights for a
package of Indian national team cricket rights; Nimbus paid US$612 mllion for a
four year contract for the rights.
2007 January – Raised Rs 5.57 billion in convertible debt from 3i, Cisco and Oman
International Fund
2006 September – Nimbus signs exclusive distribution agreement with Star TV
May- Raised US$30 million (from Deutshce Bank) to fund launch of 3 sports
channel
March- Indian cricket broadcasting rights acquired for US$ 612 million.
January- Three year domestic and international broadcasting rights of Pakistani
cricket team.
2005 August- 3i purchases 33% equity for US$45 million.
April- Transatlantic sells 10.57% stake to Americorp Ventures for Rs 300 million
2000 Cancelled IPO on BSE and NSE
Joint venture (50:50) with World Sports Group Limited to form WSG Nimbus Pte
Limited (Singapore). Investment of US$125,000 for 50% stake.
1997 Ventured into digital media with Nimbus Online.
1994 Converted into public limited company.
1993 Establishment of Nimbus TV & Sport arm offering sports based television content.
1987 June- Incorporated as private limited company.

Page 200 of 260
Indian media market
Figure 218) Nimbus Communications, key management
Name Position
Harish Thawani Executive Chairman

Uday Sinhwala Chief Operating Officer (Television media marketing and TV Broadcasting)
Raj Kumar Goel Chief Financial Officer
Sunil Manocha Senior Vice President (Television & Media Marketing and Acquisitions)
Akash Khurana Chief Operating Officer (Motion Pictures)
Rahul Guha Vice President (Music)
Venu Nair Senior Vice President (Broadcasting)
Sanjeev Shroff Assistant Vice President (Marketing)
In addition to Harish Thawani, the largest shareholding is held by the UK private

equity firm, 3i.

Page 201 of 260
Indian media market
CC. Padmalaya Telefilms
Activities: TV and film production


Market codes: Reuters: PADM.BO
Bloomberg: PDMT@IN
52 wk low: Rs 9.50
Padmalaya Telefilms is a film and television prodfuction company with a strong

presence in local language production and animation. The company also offers a
range of film processing and post-production services.
The company is listed on the BSE and the Hyderabad Stock Exchange. In 2004,
the company was accused of accounting fraud by Zee Telefilms (which had owned
a minority stake in the company).
Figure 219) Padmalaya Telefilms. summary financials
RS in Millions 2003 2004 2005 2006 CAGR
Total Revenue 902.3 965.7 215.3 141.5 -45.7%

% Change 90% 7% -77.7% -34.2%
Net profit (Loss) 169.9 -224.8 -31.7 -161.5 -148%

% Change 59.5% -232% 85.8% -409%
Net Margin 18.8% -23.3% -14.7% -114%

Page 202 of 260
Indian media market
2005 Animation and Media education centre (Padmalaya-Zica) launched in collabration

with Apple
2004 December- Zee Telefilms divested the stake due to alledged accounting fraud.
March- Television content production deal with Mondo TV worth US$14 million.
February- Seshagiri Rao appointed as Managing Director and Chairman
2003 December- 2D animation project signed with European studio worth US$15
million.
November- Produced animation serial “Bheema Keema” aired on Zee TV.
August- Richhold Trading Private Limited, Shankar Lal Saraf and Madhu Devi
Saraf purchased minority equity (5.55%).
2002 March- Became a subsidiary of Zee Telefilms; acquired 64.3% in holding
company Padmalaya Enterprises Private Limited.
2001 Sold-off animation film production arm
2000 Ventured into animation film production through joint venture with Film Club (USA)
and Anglo American Film Distributors.
May- Listed on Bombay and Hyderabad Stock Exchanges.
1991 Seshagiri Rao founded Rajiv Ratna Cine Enterprises Private Limited (predecessor
of Padmalaya Telefilms)
Television content production

Padmalaya Telefilms television production has focused on mythological
(Swapnasundari etc), historical (The British Rule) and religious (Karna) themes.
Majority of these programmes have been produced in South Indian local languages
such as Telugu, Tamil and Malayalam (and also Hindi).
the company has built up an extensive library of local language content
porgramming.
Film Production
Padmalaya Telefilms produces Hindi and South Indian movies. The company’s
films have had moderate success at the box office.
Animation and commercials

Padmalaya Telefilms produces animated films for variety of clients including long
term agreement with Mondo TV. Regional language (Tamil, Telugu and
Malayalam) based commercials are produced for corporations operational in
Southern India.
Media services
Padmalaya Telefilms manages one of the largest studios in Hyderabad for in-house
and third party production. The studio hosts dubbing services (international movies
into regional languages) along with pre and post production facilties.

Page 203 of 260
Indian media market
Figure 220) Padmalaya Telefilms, key management and directors
Name Position
Seshagiri Rao Managing Director and Chairman

K Raghavendra Additional Director
Kumar
Ajitham G Kurup Additional Director
Bijay Khemka Additional Director
K Gopala Krishna Additional Director
Atul Goel Additional Director
K Shrinivasan Additional Director
Rajiv Garg Additional Director
G V Narasimha Rao Additional Director
A.S.Ram Kumar Company Secretary and Compliance Officer
Figure 221) Padmalaya Telefilms, key shareholdings
Seshagiri Rao & associates 22.51%

Corporates 14.97%

Page 204 of 260
Indian media market
DD. Prasar Bharti
Activities: TV and radio broadcasting

Ownership: State owned
Recent strategic developments: Launch of DTH offering
Prasar Bharti is the holding organisation for India’s public service broadcasters,
Doordarshan (television) and All India Radio. Prasar Bharti reports into the Ministry
of Information & Broadcasting.
Public service broadcasting is funded through a misture of government funding and
advertising and sponsorship. Both Doordarshan and All India radio are facing
increasing competition as the commercial broadcasting market develops.
Figure 222) Prasar Bharti, summary financials

y/e March
2001 2002 2003 2004 2005 2006 CAGR
RS (Billions)
Total Revenues 7,100 7,120 6,860 6,740 8,310 11,680 10.4%

% Change 0.3% -3.7% -1.7% 23.3% 40.5%
2006 Distribution of four Doordarshan channels in United States for US$ 6.3 million via
EchoStar.
2005 April- Increase of 20% in advertising rates on DD News channel.
2003 Launch of DTH offering, DD Plus
2002 August- Strategic alliance with Modi Entertainment Group for converting DD
Sports into free-to-air television channel.
1936 Radio broadcasting re branded to AIR (All India Radio).
1927 Indian Broadcasting Service (radio) launched in Mumbai and Kolkata (former
Calcutta).

Page 205 of 260
Indian media market
Doordarshan
Doordarshan broadcasts 21 national and local television channels.
Figure 223) Doordarshan, main channels
DD National General Free-to-air flagship channel featuring serials, dramas, theatre,

Entertainment news, sports and education updates. Channel has coverage of
89.6% population of India66.
DD News International and Launched in September 2003; with coverage of 44.9% of
dometic news Indian population67.
DD Sports Sports updates Free-to-air channel featuring cricket, hockey and football
matches along with player interviews and analysis. Main focus
on domestic sports68.
DD India General Channel targetting international audiences featuring serials,
Entertainment sports updates, business and regional language based
programmes.
Market share: 8%69
Gyandarshan Sectors and Featuring information on agriculture, information technology,
Informative telecommunication, career development, science, hygiene etc
sectors.
Radio broadcasting
All India Radio broadcasts International, national, regional and local based radio
channels in all genres (music, current affairs & news, general entertainment etc).
Figure 224) All India Radio, channels
Network Genre Description
National General Entertainment Offered in three languages70; with coverage of

76%71 of Indian population.
Features: radio shows, comedy shows, news
bulletin, movie reviews, songs etc.
FM western music, Indian Three FM networks: Rainbow, FM Gold and FM

classical and current affairs Classic Music
Vividh Bharti Music Classical music (Hindi)
External Regional and International Stations offered in regional (Marathi, Bengali,
language networks Telugu, Punjabi etc) and international languages
(Arabic, French, German)
Financials
For the last full year (end March 2006), Prasar Bharti, had total revenues of Rs
11.68 billion, year-on-year increase of 40%. The growth of Doordarshan’s revenues
was attributed to increased cricket and fim audiences. All India Radio’s revenues
increased Rs 1.1 billion due to contribution from non-profit organisations (e.g.
National AIDS Control).

Page 206 of 260
Indian media market
Figure 225) Prasar Bharti, financials
y/e; March (Rs billion) 2001 2002 2003 2004 2005 2006 CAGR
Revenues by Type
All India Radio 0.73 0.96 1.32 1.41 1.61 2.68 30%
Doordarshan 6.37 6.15 5.54 5.33 6.7 9.0 7.2%
Total Revenues 7.1 7.12 6.86 6.74 8.31 11.68 10.4%
Management
Figure 226) Prasar Bharti, key management and directors
Name Position
M.V. Kamath Chairman

K.S.Sharma Chief Executive Officer
D.P.S Lamba Director of Personnel
Bhupen Hazarika Partime Board of Director
Chitra Mudgal Partime Board of Director
M.J. Mehta Partime Board of Director
R.N. Bisaria Partime Board of Director
Pradeep Singh Additional Secretary
Navin Kumar Director General (DD)
Brijeshwar Singh Director General (Akashvani)

Page 207 of 260
Indian media market
EE. Pritish Nandy Communications
Activities: Film and TV production


Market codes: Reuters: PNCL.BO
Bloomberg: PRTN@IN
52 wk low: Rs 29.85
Pritish Nandy Communications is a film and television production company active

in the low budget bilingual Hindi film sector. The company has recently launched
some activities in digital media.
The company is listed in the BSE and NSE and the founder, Pritish Nandy controls
a 39% stake. The company started as an advertising agency 1993.
Figure 227) Pritish Nandy Communications, summary financials
y/e March, (Rs millions) 2003 2004 2005 2006 CAGR
Revenues72 388.9 295.9 337 327.5 -5.5%

% Change 95.7% -24% 13.9% -2.8%
PBT73 23.5 49 67.8 69.7 43.6%

% Change -25.9% 108.5% 38.3% 2.8%
% Margin 6.0% 16.5% 20.1% 21.3%

Page 208 of 260
Indian media market
2005 October- Big budget Hindi film “Ek Khiladi Ek Haseena” released.
April- Low budget bilingual (English-Hindi) “Hazaaron Khwaishein Aisi” released
worldwide.
January- Co-Production of film titles with Balaji telefilms for 2-3 years.
2004 October- Board of Directors approve foreign institutional investor shareholding to
60%.
June- Winstar India Investment Company purchase 8.97% of equity.
2003 March- International distribution rights of bilingual home production “Jhaankar
Beats” sold to Fairdel International.
2002 Ventured into film production with low budget Hindi films “Kuch Kathi Kuch Methi
and Bollywood Calling.
December- Produced big budget film Kaante.
2000 December- Listed on National and Bombay Stock Exchanges
Film Production
In film production, the company has produced a range of low and big budget
Bollywood movies. In 2005, it released 4 Hindi movies (2 small and 2 1 big
budget). The company also prodcues Hindi and Tamil language programming in
the business, general entertainment and current affairs genres.
Pritish Nandy Communications has expanded into organising film industry events
(Sansui Awards Ceremony & Talent Hunt in western dance).
Digital Media
Pritish Nandy Communications operates 4 e-commerce websites in the film and
entertainment sectors; these include a film ticketing website,
mumbaiticketmastering.com and an online art auction website,
indianartauction.com.
Financials
For the last full year (end March 2006), Pritish Nandy Communications, had
segment revenues of Rs 327 million, and Profit before tax of Rs 70 million, year-on-
year segment revenue decrease of 3%.
Figure 228) Pritish Nandy Communications, financials
y/e March (Rs million) 2003 2004 2005 2006 CAGR
Revenues by Type
Television & Film Production 377.5 284.2 321.5 315.4 -5.7%
Digital Media & Events 11.4 11.7 15.5 12.1 1.9%
Total revenues 388.9 295.9 337 327.5 -5.5%
Profit Before Tax74 23.5 49 67.8 69.7 43.6%
% Margin 6.0% 16.6% 20.1% 21.3%

Page 209 of 260
Indian media market
Figure 229) Pritish Nandy Communications, key management
Name Position
Pritish Nandy Chairman

Pallab Bhattacharya Chief Executive Officer and Wholetime Director
Rina Pritish Nandy Director
Rangita Pritish Nandy Wholetime Director
Ashok Bhattacharya Chief Financial Officer
Bobbie Ghosh General Manager (Production)
Elton Menezes General Manager (Wellness)
Gauri Sahasrabudhe Company Secretary and Compliance Officer
Pritish Nandy (Founder & Chairman), Rangita Nandy (wife) and other family
members have a 39.5% of controlling stake in the company.

Page 210 of 260
Indian media market
FF.PVR Limited
Activities: Multplex operations, film distribution

Recent strategic developments: Multiplex roll-out

Market codes: Reuters: PVRL.BO
Bloomberg: PVRL@IN
52 wk low: Rs 190.00
52 wk high: Rs 337.00
PVR is the largest multiplex operator in India with a total of 77 screens across 16
multiplexes (and 1 single screen cinema). The company has a very active
programme of developing new multiplexs across India and is also involved in film
distribution.
PVR Limited is listed on the BSE and NSE; the private equity fund “ICICI Ventures
owns an 18% stake. The company was initially incorporated as Priya Village
Roadshow in a joint venture with the overseas multplex operatorm Village
Roadshow in April 1995.
Figure 230) PVR Limited, summary financials
Total Revenue 393.6 497.4 706.6 1,074.3 39.2%

% Change 26.4% 42% 52%
EBITDA 76.5 83.8 131.7 193.1 35.7%

% Change 9.5% 57.1% 46.6%
Net profit (Loss) 1.3 15.6 37.4 54.8 243.7%

% Change 1100% 139.7% 46.5%
% EBITDA Margin 19.4% 16.8% 18.6% 18%

Page 211 of 260
Indian media market
2006 July- Expansion into core Northern India region with opening of 2 new multiplex
cinema malls in Delhi suburb regions.
April- Board of Directors approve 10% interim dividend.
April- Entered North Eastern region with 4 screen multiplex cinema mall in
Lucknow.
March- Acquired distribution rights of 15 bid budget Hindi films for Rs 75 million.
March- IPO on National and Bombay Stock Exchanges.
February- 3 screen multiplex cinema mall
January- Agreement signed to open 3 multiplex cinema halls in State of Punjab
(100% entertainment tax exemption)
2004 November- Opened India’s largest multiplex cinema mall with 11 screens in
Bangalore (Southern India).
July- Launched free film based periodical “PVR Movies” in Delhi available at PVR
multiplex cinema malls.
February- Joint venture agreement with K Sera Sera Production brand “Factory”
for distribution of 9 big budget films across India.
2003 March- ICICI Venture Funds Management Company Limited made strategic
investment worth Rs 380 million for 38% stake.
2002 November- Village Roadshow Limited divested entire shareholding
1997 Opened first multiplex cinema hall “PVR Saket” in Delhi
1995 April-Joint venture between Priya Exhibitions Private Limited and Village
Roadshow Limited to form PVR Limited.

Page 212 of 260
Indian media market
Activities
Multiplexes
PVR Limited manages and controls 16 multiplex cinema malls in India; th enumber
of visitors grew 78% to 8.78 million in the year to March 2006. the company’s
growth strategy has broadened to develop lower cost budget multiplexes in small
citieis.
Figure 231) PVR Limited, multiplexes
Cinema Location Screens Seats Opening date
Anupam Delhi 4 1,000 Jun-97

Priya Delhi 1 944 Jan-00
Naraina Delhi 4 830 Aug-01
Vikaspuri Delhi 3 921 Nov-01
Metropolitan Mall Gurgaon 7 1,310 May-03
Crown Plaza Faridabad 2 504 May-04
Plaza Delhi 1 300 May-04
Forum Mall, Bangalore Karnataka 11 2,011 Nov-04
EDM Uttar Pradesh 3 726 Mar-05
Central Mall, Hyderabad Andhra Pradesh 3 926 Feb-06
Rivoli Delhi 1 329 Feb-06
Treasure Island, Indore Madhya Pradesh 5 1,140 Apr-06
Sahara Mall, Lucknow Uttar Pradesh 4 874 Apr-06
Juhu Mumbai 2 580 Apr-06
Nirmal Lifestyle Mumbai 6 1,750 Jun-06
Mulund
Sahara Mall Gurgaon 2 528 Jul-06
Franchisee
Spice Noida 8 1,821 Dec-05
SRS Mall Faridabad 3 776 Nov-04
Opened in late 2006

Latur, Maharashtra 3 1148
Aurangabad, Maharashtra 3 1151
Film Distribution
PVR Limited acquires and distributes low, medium and big budget films through
wholly owned subsidiary “PVR Pictures”. The subsidiary acquires Hindi and English
film titles in all genres.
Financials
For the last full year (end March 2006), PVR Limited, had total revenues of Rs
1,074 million, and Net profit of Rs 55 million, year-on-year Net profit increase of
46%.

Page 213 of 260
Indian media market
Figure 232) PVR Limited, financials

Revenues by Type
Sale of Tickets 395.8 417.0 446.2 704.6 21%
Sale of film rights and distribution 2.7 1.4 0.5 2.0 -9.4%
Sale of Food 86.9 110.5 142.7 212.5 34.7%
Royalty 5.4 6.6 8.7 12.0 30.1%
Advertising revenue 45.9 60.6 87.2 90.5 25.1%
Management fees - - 1.0 8.7 n.d
Other 10.3 15.5 20.3 44.2 61.7%
Total revenues (after entertainment

393.6 497.4 706.6 1,074.3 39.2%
tax)
EBITDA 76.5 83.8 131.7 193.1 35.7%
Net profit 1.3 15.6 37.4 54.8 243.7%
% Net Margin 0.3% 3.1% 5.3% 5.1%
Figure 233) PVR Limited, segment analysis
Revenue (2006)
Management
fees Other
Advertising 0.8% 4.1%
8.4%
Royalty
1.1%
Food and drink

19.8%
Film distribution Ticket sales

0.2% 65.6%

Page 214 of 260
Indian media market
Figure 234) PVR Limited , key transactions
March Acquisition N.A. PVR Distribution rights of 15 big budget

2006 films purchased for Rs75 million.
March Private equity PVR Limited India ICICI Venture Funds Management
2003 stake Advantage Company Limited through India
(38.45%) Fund 1 Advantage Fund 1 invested Rs
380 million.
Figure 235) PVR Limited, key management and directors
Name Description
Ajjay Bijli Chairman and Managing Director

Sanjeev Kumar Appointed as Executive Director (July 2003)
Amit Burman Non-executive director
Sumit Chandwani Director (Nominee of ICICI Venture)
The Chairman Ajjay Bijli and his associated companies control 40% of the equity
(September 2006).
Figure 236) PVR Limited, key shareholdings
Shareholder % of capital (September 2006)
Promoters:
Bijli Investments Private Limited 21.51%
Priya Exhibitors Private Limited 18.93%
India Advantage Fund 1 (ICICI Ventures) 18.59%

Page 215 of 260
Indian media market
GG. Sahara One Media & Entertainment
Activities: Diversified media (publishing and broadcasting)


Market codes: Reuters: SAHM.BO
Bloomberg: SHRA@IN
Mkt. Cap.
52 wk low: Rs 231.25
52 wk high: Rs 523.50
Sahara One Media & Entertainment (“SOME”) is the media subsidiary of a large
Indian conglomerate. The company is active in television broadcasting and
production, film production, newspapers, magazines and radio.
SOME is listed on a number of exchange, but the founding Roy family still hold
90% of the equity. The company was formed in 2000 with the launch of Sahara TV
(later Sahara One).
Figure 237) Sahara One Media & Entertainment, summary financials
Total Revenue 655.5 1,205.3 2,146.9 2,120.5 47.3%

% Change -10.7% 83.8% 78.1% -1.2%
Net profit (Loss) 21.1 66.4 65.1 72.3 50.1%

% Change 21.6% 216% -2% 11.1%
Net Margin 3.2% 5.5% 3% 3.4%

Page 216 of 260
Indian media market
2006 February- Bennett Coleman & Company Limited purchased minority stake.
January- Manage and control of advertising sales business of Aastha Broadcasting
Network.
2005 December- Change of name from Sahara India Mass Communication.
November- Standalone video embedded film portal “Homedeliver.com”.
October- Launched film based television channel “Filmy”.
September-Signed Hollywood star “Collin Farrell” for Tree of Life movie due
release in 2008.
August- Acquisiton of 28 film library from Bollywood producer “Boney Kapoor”.
August- Shantonu Aditya appointed as Chief Operating Officer.
July- Appointed Shailesh Kapoor as Marketing Head of Filmy television channel.
July- Board of Directors approve film production investment of Rs 3 billion for next
two years.
2004 January- Share subscription agreement with K Sera Sera Production worth
150,000 equity shares.
Signed leading Bollywood actor Karishma Kapoor for Rs 100 million.
2003 January- Fire break out at corporate office destroyed key financial accounts
2000 Sahara TV (predecessor of Sahara One) free-to-air channel launched in Hindi
general entertainment genre.
Activities
Television
Sahara One Media & Entertainment broadcasts national, regional and local free-to-
air and pay channels in Hindi language.
Figure 238) Sahara One Media & Entertainment, channels
Sahara One General National, hindi language channel

Entertainment
Filmy Film Hindi movies
Sahara Samay News 36 local and regional news channel network featuring in
depth coverage of local news,
Film Production
Sahara One Media & Entertainment produces Hindi language films The company
has recently released a bilingual (Hindi and English) animation feature on hindu
mythology.

Page 217 of 260
Indian media market
Publishing
SOME publishes three weekly and two daily newspapers in English, Hindi and
Urdu languages.
Figure 239) Sahara One Media & Entertainment, publications

Title Language Frequency
Sahara Samay Hindi Weekly

Sahara Time English Weekly
Aalmi Samay Urdu Weekly
Rashtriya Sahara Hindi Daily
Roznama Rashtriya Sahara Urdu Daily
Radio broadcasting
SOME operates a number of radio networks on the WorldSpace satellite radio
service.
Financials
For the last full year (end March 2006), Sahara One Media & Entertainment, had
total revenues of Rs 2,120 million, and Net profit of Rs 72.3 million, year-on-year
Net profit increase of 11%.
Figure 240) Sahara One Media & Entertainment, financials

y/e March (Rs million) 2003 2004 2005 2006 CAGR
Revenue
Television Channel n.a 1,053.1 1,354.9 n.a
Film Production n.a - 600 n.a
Newspaper and Radio n.a 152.2 192 n.a
Total revenues 655.5 1,205.3 2,146.9 2,120.5 47.3%
Net profit 21.1 66.4 65.1 72.3 50.1%
% Margin 3.2% 5.5% 3.0% 3.4%

Page 218 of 260
Indian media market
Figure 241) Sahara One Media & Entertainment, segment analysis
Revenue (2005)
New spaper and

Radio
8.9%
Film Production
27.9%
Television
63.1%
Figure 242) Sahara One Media & Entertainment, key management

Name Position
Subrata Roy Sahara Chairman and Chief Executive Officer

Shantanu Aditya Chief Operation Officer
J B Roy Director
O P Shrivastava Director
V B Chandra Director
Bimal Kishore Nanda Company Secretary
Shailesh Kapoor Marketing Head of Filmy
Figure 243) Sahara One Media & Entertainment, key shareholdings
Subrata Roy and family members 90.58%

Page 219 of 260
Indian media market
HH. Sandesh
Activities: Newspaper publishing

Recent strategic developments: Investment by the Times of India group

Market codes: Reuters: SNDH.BO
Bloomberg: SDSH@IN
52 wk low: Rs 78.10
52 wk high: Rs 224.40
Sandesh is a Gujurat-based newspaper publisher; its main title is the second

largest readership daily newspaper in Gujarat, Sandesh. It also publishes a range
of magazines and websites. It’s only publishes in the Gujurati language.
Sandesh is listed on a number of exchanges, including the BSE and NSE. The
founding family have a 74.5% equity (March 2006).
Figure 244) Sandesh, summary financials
Total Revenue 1,333.4 1,378.3 6,694.3 1,444.4 2.7%
% Change 3.4% 385.6% -78.4%

Net profit (Loss) 245.5 96.5 67.1 29.4 -50.3%
% Change -60.7% -30.4% -56.2%
Net Margin 18.4% 7.0% 1.0% 2.0%

Page 220 of 260
Indian media market
2006 October – Allocation of a 12% minority stake to the Times of India group
May- Termination of media and advertising contract with Ad Space Mart
January- Shreyas Pandya appointed as Additional Director
2005 December - Relaunch of newspaper
2004 September- Annual dividend of 30% approved
April- Launched import-export arm.
2002 April- Ventured into health care business through Sandesh Healthcare
March- Parthivbhai Patel elected as Additional Director.
1994 Listed on 6 Stock Exchanges (Bombay, National, Saurashtra etc).
Oversubscribed 15 times.
1988 Investment subsidiary “Sarvashanti Investments Private Limited” established.
1985 Launch of Baroda edition
1958 Late Chimanbhai Patel family took over the management control
1943 March- Incorporated with first edition of Sandesh
Newspapers
Sandesh is a Gujarati language daily newspaper, with a circulation of
approximnately 740,000. The newspaper is published in 6 print editions and also in
an online version (sandesh.com).
Periodicals
Sandesh publishes 5 Gujarati language periodicals.
Figure 245) Sandesh, periodicals
Title Genre Frequency
Stree Women Weekly

Joytish Deep Astrology Monthly
Share Bazaar Business Weekly
Darma-Sandesh Culture and Society Fortnightly
Sandesh Pratyaksha Panchang Annual news and events Annual
Financials
For the last full year (end March 2006), Sandesh, had total revenues of Rs 1444
million, and Net profit of Rs 29.4 million, year-on-year Net profit decrease of 56%.
Figure 246) Sandesh, financials
Total Revenue 1,333.4 1,378.3 6,694.3 1,444.4 2.7%

Net profit 245.5 96.5 67.1 29.4 -50.3%

Page 221 of 260
Indian media market
Figure 247) Sandesh, key management and directors

Name Position
Falgunbhai Chimanbai Patel Chairman and Managing Director

Mahendrabhai Kanaiyalal Shah Director
Chandravadan Ramanlal Shah Director
Harish Motwani Company Secretary
Pannaben Falgunbhai Patel Director
Sudhirbhai Mehta Director
Bhadreshbhai J Mehta Director
Sudhirbhai I Nanavati Director
Parthivbhai Falgunbhai Patel Director
Mukeshbhai M Patel Director
Sandesh is managed by Patel family members; controlling 74.5% of equity.

Foreign shareholding is mere 0.11% (March 2006).

Page 222 of 260
Indian media market
II. Saregama
Activities: Music publishing
Recent strategic developments: Expanded into TV and film production

Market codes: Reuters: SARE.BO
Bloomberg: GCOI@IN
52 wk low: Rs 121.85
52 wk high: Rs 330.00
Saregama is India’s leading recorded music and music publishing company. The
company publishes in all major Indian languages and distributes music in India and
abroad. In 1998, it launched a venture producing films and television programmes.
Saregama is listed on the BSE and NSE; its parent company RPG Enterprises
owns a 51% equity interest.
Figure 248) Saregama, summary financials

75 76
y/e March (Rs Millions) 2003 2004 2005 2006 CAGR
Total Revenue 1,270.2 771.2 1,135.9 1,188.7 -2.1%

% Change 3.0% -39.2% 47.3% 4.6%
Net profit (Loss) -439.5 -211 52.1 88.7 148%

% Change -70.6% 51.9% 124.6% 70.2%
% Net Margin -34.6% -27.3% 4.6% 7.5%

Page 223 of 260
Indian media market
2005 May- Sonata Investments Limited acquired minority stake.

April- EMI Records divested remaining equity.
March- Two year home video distribution agreement with MGM.
2004 March- Ventured into digital music download arena with tie-ups with itunes, Real
Networks and Loudeyi.
March- Home video distribution agreement with BBC Worldwide through VCD and
DVD’s.
2003 November- Board of Director restricted individual film budget to Rs 50 million.
June- Majority stake purchased in Min Bimbangal Productions for Rs 100 million.
July- Produced first Telugu mythological television content.
March- Saregama Films Limited incorporated for producing small to medium
budget movies.
2002 Distribution agreement with Universal pictures Entertainment and Warner in home
video segment
2000 Launched B2C e-commerce portal “Hamara CD”.
1998 Ventured into film production with Saregama Plc subsidiary listed on OFEX
(United Kingdom).
1985 RPG Enterprises acquired EMI Records (India) from EMI (United Kingdom)
Activities
Music Production
Saregama is the largest music producer in India offering it in 13 languages (Hindi
and regional languages). The company’s repertoire extends across Hindi, classical,
regional, gazals, mythological and pop. The Hindi genre contributed 40% of music
revenues in 2004.
Saregama also distributes music content to radio stations, television channels,
restaurants.
Film and television

Saregama film production has focused on small budget hindi films. In television, it
produces Telugu, Tamil and Malayalam language programming for a number of
South Indian channels (Surya TV, Udaya TV, Sun TV and Gemini TV).
Home Entertainment Distribution

Saregama distributes English movies and television programmes in India and
overseas markets. It has a number of partnerships with companies such as BBC
Worldwide, MGM, Warner and Universal Pictures.

Page 224 of 260
Indian media market
Financials
For the last full year (end March 2006), Saregama, had total revenues of Rs 1,188
million, and Net profit of Rs 88.7 million, year-on-year Net profit increase of 70%.
Figure 249) Saregama, financials
y/e; March (RS million) 2004 2005 2006 CAGR
Revenue by spurce
Music 748.7 1,048 973.3 14.0%
Television content/ Film 22.7 97.7 169.2 173.0%
Home Video n.a n.a 46.2
(Elimination) (9.9) n.d
Revenue by Geography
India 691.5 1,042.7 n.a
Overseas 79.7 93.1 n.a
Total Revenues 771.2 1,135.9 1,188.7 24.2%
Net profit (Loss) -211 52.1 88.7
Figure 250) Saregama, segment analysis
Revenue (2006)
Home Video
4%
Television
content/ Film
14%
Music
82%
Figure 251) Saregama , key transactions

April 2005 Divestment Saregama India EMI Transaction price: Approximately

(7.71%) Records Rs 72 million.
June Acquisition Min Bimbangal Saregama Transaction cost: Rs 100 million
2003 (55%) Productions India
Production enterprise in Chennai

Page 225 of 260
Indian media market
Management
Figure 252) Saregama, key management and directors
Name Position
R.P Goenka Chairman

S.Goenka Vice Chairman and Board of Director
D.R Mehta Chief Executive Officer
S.Banerjee Board of Director
P.K Mohapatra Board of Director
H.Neotia Board of Director
J.N.Sapru Board of Director
D.Basu Board of Director
D.R Mehta Managing Director
T.K Banerjee Company Secretary
Harish Dayani Chief Executive (Film Business)
Ownership and management

Saregama is subsidiary of RPG Enterprise (managed by Goenka family members)
and associate companies; with controlling stake of 51% (June 2006).
Figure 253) Saregama, key shareholdings
Promoter group 50.77%

Sonata Investments Limited 6.04%

Page 226 of 260
Indian media market
JJ. Shringar Cinemas
Activities: Multiplex operator, filmdistribution

Recent strategic developments: Ongoing multplex development

Market codes: Reuters: SHRC.BO
Bloomberg: SCIN@IN
52 wk low: Rs 34.50
Shringar Cinemas is an entertianment company with operations in Indian film

distribution, multplex development and management. In the multiplex space, the
company operates under the Fame brand and has become the fourth largest
operator in India.
Figure 254) Shringar Cinemas, summary financials
y/e March (Rs Millions) 2005 2006 % Change
Total Revenue 379 581 53.3
EBITDA 34 57 67.6
% Margin 9% 9.8%
2006 Raise US$20 milion through an FCCB offering
2005 IPO on BSE and NSE
Sell 15% stake to private equity firm, Temasek
2002 Entered multplex market
2001 Equity investment by GW capital 935% stake for Rs 160 million)

Page 227 of 260
Indian media market
Activities
The company’s key focus is the development and management of multiplexes. In

addition to the 7 multiplexes it owns and operates (Andheri is a 50:50 joint venture
with Adlabs Films), another 16 are planned to be operational by the end of financial
year 2008. Shringar’s role in multplex management extends beyond films to
include the development of food courts.
If the company’s multiplex expansion is successful, it should eventually have a
strong presence across Maharashtra, Punjab and West Bengal.
Figure 255) Shringar Cinemas, Current multiplexes
State City No. of screens No. of seats
Maharasthra Mumbai (Andheri) 5 1342

Mumbai (Malad) 6 1571
Mumbai (Kandivali) 4 1275
N ashik 3 1407
Pune 3 1009
West Bengal Kolkata 4 897
Gujurat Surat 6 1850
The company started as a film distribution business almost 50 years ago and
continues to expand its activities in this sector too. It distributes both Bollywood
and overseas films, with a capacity of approximately 1 film a month. Film
distribution revenues contribute between 10%-15% of group revenues.

Figure 256) Shringar Cinemas, key management and directors
Name Position
Mr.Shyam Shroff Chairman

Mr. Shravan Shroff Director
Mr. Balkrishna Shroff Director
Figure 257) Shringar Cinemas, key shareholdings

Shareholder % of capital
Promoters 47.75

Page 228 of 260
Indian media market
KK. Sony Entertainment Television
Activities: TV broadcasting
Ownership: Privately owned (Sony owns 61%)
Recent strategic developments: Planned IPO in 2007
Sony Entertainment Television (SET) is one of India’s leading commercial

broadcasters. The company broadcasts a range of film, general entertainment and
sports channnels.
Figure 258) Sony Entertainment Television, television channels

Channel Description
SET General entertainment

SET PIX English language entertainment
SAB General entertainment targeted at 24-35 year olds
MAX Premium movies and special events
SET established a joint venture with Discovery Networks to distribute both

companies channels. The venture is known as the One Alliance bouquet and it
includes channels from SET, Discovery, MTV, Nick, Animax and NDTV.
2006 February – launch of PIX channel
2005 SET acquires SAB TV from Adhikari Brothers
2002 One Alliance formed with Discovery Networks
1996 SET reaches over 50% of cable TV households
1995 SET launches Hindi language channel

Page 229 of 260
Indian media market

SET is planning an IPO for early 2007.
Figure 259) Sony Entertainment Television, key management

Name Position
Kunal dasGupta CEO

Rohit Gupta Executive vice president
Albert Almeida Executive vice president
Figure 260) Sony Entertainment Television, key shareholdings
Sony Pictures Entertainment (SPE) 61

Capital International 8

Page 230 of 260
Indian media market
LL.Star TV (News Corporation)
Activities: TV broadcasting
Ownership: Owned by News Corporation
Recent strategic developments: Launch of DTH offering, Tata Sky
Star TV is a leading commercial TV broadcaster. The company entered the Indian

market in 1991 and has grown into one of the top three broadcasters. In the last 2
years, Star TV has expanded into television and film production, DTH services and
radio Star TV’s parent company, News Corporation is also active in the Indian
outdoor advertising market.
Star TV has operations across the Asia region and is ultimately owned by the US-
based News Corporation.
2007 February – Resignations of Michelle Guthrie, (CEO, Star Group);
Peter Mukerjea (CEO, Star India) and Sameer Nair (CEO, Star
Entertainment)
2006 November – negotiating to purchase a 20% stake in a radio
operation.
August – launch of Tata Sky DTH platform (Star TV is a 20%
shareholder)
2004 August – Acquisition of stake in Balaji Telefilms
June – Launch of Star Utsav channel
2003 September – Sales of majority stake in Star’s news channel to
Anand Bazar Patrika group
1994 Launch of Star India service
1991 Star TV starts broadcasting into India from Hong Kong

Page 231 of 260
Indian media market
Activities
Television
Star TV distributes 18 channels in India of which a small number are distributed on
behalf of other broadcasters (including National Geographic, A1, History Channel,
Disney Channel, Toon Disney, Hungama and Fox News).
Star TV’s Star Plus channel has become the market leader among general
entertainment channels. Key to achieving this success has been a significant
investment in content, especially successful overseas formats. The most important
of these formats has been the Indian version of ‘Who wants to be a millionaire’ –
Kaun Banega Crorepathi. This show has singlehandedly helped Star Plus to
achieve leadership in the prime time evening slot and to sell a significant amount of
advertising at premium prices.
Figure 261) Star TV, television channels

Star Plus Hindi General entertainment

Star One Hindi General entertainment
Average reach of 37.6 million / month (2005)
Star Utsav Hindi General entertainment, targeted at small cities and towns
Focused on soaps
Star Vijay Tamil General entertainment
Channel V Hindi/English Music channel
Star Ananda Bengali News channel
Star Movies English Movies
Star World English World television
Star Gold Hindi Movies.
ESPN Star English World sports
Sports
Star TV has a number of other minority investments in content production and

distribution companies. These include:
Balaji telefilms. Star TV has a 25% stake in the television and film
production company, Balaji Telefilms. This has enabled Star TV to secure
access to some of India’s most popular soaps.
Hathway Cable. Star TV has a 26% stake in this cable TV operator (acquired
in September 2000). Hathway Cable has a total subscriber reach of 5 million.
Tata Sky. Star TV is also a 20% shareholder in the DTH platform, Tata Sky;
the other shareholders are the Tata Group and Temasek Holdings. Tata Sky
launched its DTH offering in August 2006 and has built up a subscriber base
of 200,000.
Media Content and Communications Services (MCCS). Star TV was
required to sell a majority stake in its news broadcasting arm, MCCS to an
Indian company. Today it owns a 49% stake in MCCS and the remainder is
owned by the Ananda Bazaar Patrika group

Page 232 of 260
Indian media market
Radio
Star TV is in the process of acquiring a 20 % stake in Music Broadcast Pvt Ltd
(MBPL), which runs the Radio City network. MBPL is owned by a private equity
fund (India value Fund with 75%) and Radiovani (has a 25% stake).
MBPL is operational in Mumbai, Delhi, Bangalore, Lucknow, Hyderabad, Chennai
and Jaipur. The company also won 15 licences in Phase 2 of FM radio licencing
and has plans to launch services in a number of cities in Maharashtra, Gujarat and
Tamil Nadu.
Online
Star TV operates the Indya.com portal and is also developing a range of services
for mobile platforms. The mobile services, include short episodes of key television
programmes.
At the time of publication, Star TV is yet to name a new management team for its
India operation. A new CEO, Paul Aiello has been appoitned to head Star Group
Asia.
Star TV is a wholly owned subsidiary of News Corporation.

Page 233 of 260
Indian media market
MM. Sun TV
Activities: Diversified media group focused on Southern states

Recent strategic developments: Merger with two other companies owned by promoter

Market codes: Reuters: SUTV.BO
Bloomberg: N.A.
Current price: Rs 1,679.80
52 wk low: Rs 840.25
52 wk high: Rs 1,849.00
Sun TV is the leading media company in the south Indian states of Tamil Nadu and
Kerala. The group is active in television broadcasting, radio, film and online
services; its flagship offering is the Sun TV channel. In 2006, the founder agreed to
merge his other media interests (Gemini TV, Udaya TV) with Sun TV, creating a
media company with broadcasing operations in the Tamil, Malayalam, Telugu and
Kannada languages.
The company was established in 1985 and underwent an IPO in February 2006.
Its founder, Kalanithi Maran holds the controlling stake.
Figure 262) Sun TV, summary financials

y/e March (Rs millions) 2002 2003 2004 2005 2006 CAGR
Total Revenues 1607.2 2181.9 2683.2 3010.5 3219 19.0%
% Change 8.9% 35.8% 22.9% 12.2% 6.9%
Net profit (Loss) 467.1 584.6 772.9 779.2 1312 29.5%

% Change 14.3% 25.2% 32.2% 0.8% 68%
% Net Margin 29.1% 26.8% 28.8% 25.9% 40.8%

Page 234 of 260
Indian media market
2007 Agreement to merge Sun TV, Gemini TV and Udaya TV
2006 February - Draft filed for an IPO.
February - M K Dayalu diluted 5.75% stake for Rs 365 million.
2005 December - Name changed to Sun TV Limited.
January - Launched Kiran TV.
2004 July - Sun TV and Raj TV will be part of Doordarshan network (Direct to
home service).
July - Physical asset expansion deal regarding purchase of ten grounds
from Madras Stock Exchange for Rs 33 million.
2003 May - Suryan FM station launched in Chennai.
March - The Tamil radio station “Suryan FM” launched in Coimbatore
and Tirunelveli.
Activities
Television
The company’s product portfolio consists of television channels & content
production, FM radio stations and print publications i.e. newspapers & periodicals.
All the products are offered in four regional languages i.e. Telugu, Tamil,
Malayalam and Kannada. The company broadcasts many of its channels in
overseas markets too (including Singapore and the United States).
Figure 263) Sun TV, television channels
Sun TV Tamil General entertainment

Free to air channel
Audience share of 47.2% (2005) in Tamil Nadu.
Sun News Tamil News and current affairs channel.
Audience share of 1.4%(2005) in Tamil Nadu.
KTV Tamil Pay TV movie channel
Audience share in Tamil Nadu is 16.9%.
Sun Music Tamil Music channel
An audience share of 6.2%.
Surya TV Malayalam General entertainment The audience share is 26.7%77 in
Kerala.
Kiran TV Malayalam 24 hour movies and music
Audience share of 7.4%.
Gemini TV Telugu General entertainment
Teja TV Telugu General entertainment
Teja News Telugu News and current affairs channel.
Adithya TV Telugu 24 hour movie channel
Udaya TV Kannada General entertainment
Ushe TV Kannada Music and movie Pay TV channel
Udaya News Kannada News and current affairs channel.
Udaya 2 Kannada 24 hour movie channel

Page 235 of 260
Indian media market
Radio
Sun TV has 45 FM radio stations live or due to go live in 2007. The stations
operate under three brands: Suryan FM (Tamil language), Visakha FM (Telugu
language) and S FM (Tamil language) and are held through two subsidiary
companies (outside shareholders own stakes of less than 10% in each of the
subsidiary companies).
Figure 264) Sun TV, radio stations
State City Subsidiary
Andhra Pradesh Hyderabad Kal Radio Ltd

Rajamundri Kal Radio Ltd
Tirupati Kal Radio Ltd
Vijayawada Kal Radio Ltd
Warangal Kal Radio Ltd
Assam Guwahati South Asia FM Ltd
Gujarat Ahmedabad South Asia FM Ltd
Rajkot South Asia FM Ltd
Vadodara South Asia FM Ltd
Jharkhand Jamshedpur South Asia FM Ltd
Karnataka Bangalore Kal Radio Ltd
Gulbarga Kal Radio Ltd
Mangalore Kal Radio Ltd
Mysore Kal Radio Ltd
Kerala Cochin Kal Radio Ltd
Kannur Kal Radio Ltd
Kozhikod Kal Radio Ltd
Thiruvananthapuram Kal Radio Ltd
Trissur Kal Radio Ltd
Madhya Pradesh Bhopal South Asia FM Ltd
Indore South Asia FM Ltd
Jabalpur South Asia FM Ltd
Maharashtra Aurangabad South Asia FM Ltd
Nagpur South Asia FM Ltd
Pune South Asia FM Ltd
Meghalaya Shillong South Asia FM Ltd
Mizoram Aizawl South Asia FM Ltd
Orissa Bhubaneswar South Asia FM Ltd
Pondicherry Pondicherry Kal Radio Ltd
Rajasthan Jaipur South Asia FM Ltd
Sikkim Gangtok South Asia FM Ltd
Tamil Nadu Madurai Kal Radio Ltd
Tiruchy Kal Radio Ltd
Tuticorin Kal Radio Ltd
Uttar Pradesh Allahabad South Asia FM Ltd
Kanpur South Asia FM Ltd
Lucknow South Asia FM Ltd
Varanasi South Asia FM Ltd
West Bengal Asansol South Asia FM Ltd
Siliguri South Asia FM Ltd

Page 236 of 260
Indian media market
Film library
Sun TV has a movie library of over 1,000 hours. These films are largely in south
Indian languages and are used as content for Sun TV’s movie channels.
Publishing
Sun TV has a small publishing business with publishes five magazines in Tamil and
Malayalam languages. The largest publication is Dinakaran, a weekly Tamil
language classifieds magazine for women. The other publications are Tamizh
Murasu, Kungumum, Mutharam, Vannathirai and Kumguma Chimizh.
Financials
Figure 265) Sun TV, financials
y/e March
2005 2006 CAGR
(Rs millions)
Revenues
TV Advertising 1,397 1,845 32.1%
Broadcasting fees 495 570 15.2%
Domestic Pay TV 398 440 10.6%
Overseas 88 176 100.0%
Cable 356 0 -100.0%
Radio 144 171 18.8%
Other 25 18 -28.0%
Total Revenues 2,903 3,220 10.9%
EBITDA 1,306 2,035
% Margin 45.0% 63.2%
Figure 266) Sun TV, segment analysis
Revenue (2006)
Cable
0% Radio Other
Overseas 5% 1%
5%
Domestic Pay TV
14%
TV Advertising
57%
Broadcasting
fees
18%

Page 237 of 260
Indian media market
Figure 267) Sun TV, key management and directors

Name Position
Kalanithi Maran Chairman and Managing Director

Kavery Kalanithi Joint Managing Director
S Sridharan Non Executive Independent Director
M K Harinarayanan Non Executive Independent Director
S Natarajan Vice President (Finance)
P Paul Vice President (Marketing)
K Shanmugam Vice President (Sales)
Hansraj Saxena Vice President (Programming)
S Kannan Vice President (Technical)
K Swaminathan General Manager (Administration)
R Ravi Company Secretary
Figure 268) Sun TV, key shareholdings
Kalanithi Maran and associates 90%

Foreign institutions 6.86%

Page 238 of 260
Indian media market
NN. Tata Sky
Activities: DTH operator

Ownership: Privately owned (Tata, Star TV and Temasek)
Recent strategic developments: Launched in 2006
Tata Sky is a new entrant in india’s emerging DTH television market. The company
launched its offering at the August 2006, with 103 channels and a range of
interactive services, including Pay Per View movies. The company has
approximtaley 500,000 subscribers (company estimate, February 2007).
Tata Sky sold a 10% stake to the Singapore-based private equity firm, Temasek
Holdings for Rs 2.5 billion in jaunary 2007; this valued the group at Rs 25 billion
(US$550 million).
Figure 269) Tata Sky, key management and directors

Name Position
Vikram Kaushik Managing Director & CEO

Ishaat Hussain Chairman
Figure 270) Tata Sky, Shareholders
Tata Group 70%

Star TV 20%
Temasek Holdings 10%

Page 239 of 260
Indian media market
OO. Tej Bandhu Group
Activities: Publishing (directories, newspapers), printing and marketing

services
Ownership: Privately owned
Recent strategic developments: New title launches
The Tej Bandhu group is a privately owned group which a range of businesses in
publishing and printing. The groups key activities are in the classified directories
sector, where it publishes a range of print and online Yellow Pages directories.
The group is managed and owned by the Gupta family and was established in
1954.
Activities
Figure 271) Tej Bandhu Group, activities

Subsidiary Activities
GETIT Infomediary Ltd Publishing yellow pages directories (a top 3 player)

Established in 1986
Tej-Quebecor Printing Limited Printing company
60% shareholders alongside Quebecor
Bandhu Machinery Pvt. Ltd. Printing machinery
Bandhu Aerospace Limited Air-borne marketing materials (e.g. balloons)
Connect Market Data Private Limited Franchisee for ‘Free Ads’ classified newspapers
Neighbourhood Flash Ultra-local weekly newspaper delivered in Delhi
Getit Communications Pvt. Ltd. Direct marketing services
Sun Publications Publishes the weekly tabloid newspaper, Sun
Figure 272) Tej Bandhu Group, key management and directors

Name Position
Vishwa Bandhu Gupta Chairman,

Ramesh Gupta Vice - Chairman
Prem Bandhu Gupta Director

Page 240 of 260
Indian media market
PP. TV Today
Activities: TV broadcasting (news and business0


Market codes: Reuters: TVTO.BO
Bloomberg: TVTN@IN
52 wk low: Rs 67.00
52 wk high: Rs 137.75
The TV Today group is a leading news television broadcaster. The company’s

flagship channel is Aaaj tak which has a regular audience of over 27 million (June
2006). The company has launched a number of other niche and local channels
including Headlines Today and Tez.
TV Today was spun out of the India Today Group (it still has a 55% stake) and
listed on the BSE and NSE.
Figure 273) TV Today, summary financials
Total Revenue 1,084.9 1,401.7 1,390.7 1,595.5 13.6%
% Change 110% 29.2% -0.8% 14.7%
Net profit (Loss) 259.3 320.8 164.2 277.7 2.3%

% Change 842.9% 23.7% -48.8% 69.1%
% Margin 24% 23% 11.8% 17.4%

Page 241 of 260
Indian media market
2006 July- Memorandum of Understanding signed with Media Gateway for distribution of
channels overseas via digital multimedia platforms.
July- Looking to launch business news channel in collabration with Bloomberg.
Investment marked of rs 350-400 million.
June- Local city based Hindi news channel introduced in New Delhi (Dilli Aaj Tak).
March- Minority stake purchased by Sonata Investment Limited
2005 October- Broadcasting Aaj Tak in United States through licence agreement with
Echostar .
August- Tez Hindi news channel aired for Indian viewers.
2003 Second news channel in English launched “Headlines Today”.
Listed on Bombay Stock Exchange.
2000 Flagship Hindi news channel “Aaj Tak” aired
1999 Spun-off from Living Media India Limited’s news broadcasting arm “ TV Today
Division”.
Activities
Television channels
TV Today broadcasts three Hindi and one English news channel in India. The
company offers three nation wide and one local city (New Delhi) based television
channel. Plan to launch Mumbai city based and business news channel in coming
years.
Figure 274) TV Today, channels
78 79
Channel Genre Language Market share Viewership
Aaj Tak General news Hindi 26.89% 27.17 million

Headlines Today General news English 7.03% 6.72 million
Tez General news Hindi 2.85% n.a
Dilli Aaj Tak City news Hindi n.a n.a
TV Today offers online news through aajtak.com in Hindi and English.

Page 242 of 260
Indian media market
Financials
For the last full year (end March 2006), TV Today, had total revenues of Rs 1,595.7
million, and Net profit of Rs 277.7 million, year-on-year Net profit increase of 69%.
Figure 275) TV Today , financials
Total Revenues 1084 1401.7 1390.7 1595.5 13.7%
Net profit (Loss) 259.3 320.8 164.2 277.7 2.3%

% Margin

Figure 276) TV Today, key management
Name Description
Aroon Purie Chairman and Managing Director

G. Krishnan Chief Executive Officer
Q.W. Naqvi News Director (Aaj Tak)
Rahul Kulshreshtha Director (Technical and Operation)
Amitabh Srivastava General Manager (Network Development)
Milind Khandekar Executive Producer
Ramkripal Singh Executive Producer Assignment
Rajnish Rikhy Vice President (Sales)
Figure 277) TV Today, key shareholdings
Living Media India Limited and Nominees 55.69%

Sonata Investments Limited 9.31%
GE Capital Mauritius Equity Investment 5.34%

Page 243 of 260
Indian media market
QQ. Television Eighteen
Activities: TV broadcasting (financial and news), online media

Recent strategic developments: Expansion in online media

Market codes: Reuters: TVET.BO
Bloomberg: TLEI@IN
52 wk low: Rs 315.85
52 wk high: Rs 975.50
Television Eighteen (Tv 18) is a leading television and business news broadcaster
and online media company. The company broadcasts a range of channels
covering news and business stories. Recently, it has significantly expanded its
online media interests.
The company was established as a content provider in 1993, and is now listed on
the BSE and NSE.
Figure 278) Television Eighteen, summary financials
y/e March Rs (Millions) 2003 2004 2005 2006 CAGR
Total Revenue 318.3 445.4 834.8 1,317.8 59.8%

% Change 40% 87.4% 57.8%
Net profit (Loss) (13.3) (39.3) 194.8 194.9 148%

% Change -195% 595% 0.0%
% Net Margin -4.2% -8.8% 23.3% 14.7%

Page 244 of 260
Indian media market
2006 February- Majority stake purchase in Jagran Prakashan’s Channel 7.
January- Travel based online portal “YatraOnline.com” launched in collabration
with Reliance Capital and North West Ventures Partners.
2005 October- English news channel “CNN-IBN” launched in collabration with Turner
International.
August- Top Management Executives diluted 57,000 shares in open market.
2004 October –CommoditiesControl.com purchase for Rs 12.5 million.
2003 November- Reliance Capital Mutual Fund purchase 9.43% stake.
September – Additional 49% stake acquired in CNBC-TV18 channel. Total stake is
90%.
2000 March- Entered digital news media segment with inception of e-18.com.
May- Expanded into digital business news segment with acquisition of
MoneyControl.com
1999 October- Listed on National and Bombay Stock Exchanges.
1993 Incorporated as television content provider and broadcaster.
Activities
Television
TV18 broadcasts five general and business news based television channels in
English and Hindi. Channel 7 is rebranded as IBN7 after TV18 purchased 50%
equity from Jagran Prakashan. The segment has shown CAGR of 62% (2003-
2006) and has long-term strategic international investors (Turner International and
CNBC Asia Pacific).
Figure 279) Television Eighteen, channels
Channel Language Genre Notes
CNBC-TV18 English Business news 90% stake in venture with 0.8

million viewership80.
CNN-IBN English General News Joint venture with Time Warner
South Asia English General News News specific to South East Asia
broadcasted across the globe.
CNBC-Awaaz Hindi Business news Viewership: 0.31 million81
IBN7 Hindi General News 50% stake in Jagran Prakashan
launched channel.

Page 245 of 260
Indian media market
Digital Media
TV18 manages business and sector specific digital media via online and mobile
formats. These websites are offered in commodities, travel, jobs, stock trading and
business news genres. Business and sector updates are also offered via mobile.
Figure 280) Television Eighteen, digital media
Digital content Genre/Sector Notes
MoneyControl.com Business news Free investor based portal

Cricketnext.com Sports
Commodities.com Commodities Commodities trading in India, Burma, Nepal,
information Pakistan and Singapore.
PowerYourTrade.com Trading B2B and B2C stock trading portal also
offering business updates for investors.
Paid investor based portal with 75,000
subscribers.
Yatra.com Travel B2C travel based e-commerce portal
launched in collabration with private equity
players.
Jobstreet (India) Dot Com Jobs Holdings-50% in Indian subsidiary of
Malaysian based corporation.
IBNlive.com News Digital version offering videos and breaking
news.
2622 Mobile Service Business and Service generate 50,000 SMS per day from
financial information investors looking for market updates
Financials
For the last full year (end March 2006), TV18, had total revenues of Rs 1,317
million, and Net profit of Rs 195 million, year-on-year revenue increase of 52%.
Figure 281) Television Eighteen, financials
Television 296.4 429.5 813.3 1,267.8 62.2%

Other 21.9 15.8 21.4 49.9 32%
Total Revenues 318.3 445.4 834.8 1,317.8 59.8%
Net profit (Loss) -13.3 -39.3 194.8 194.9 148%
% Margin 23.3% 14.7%

Page 246 of 260
Indian media market
Figure 282) Television Eighteen, key transactions

August Acquisition Cricketnext.com, Urban Eye is Mumbai based interactive

2006 (100%) Compareindia.com and agency.
Urban Eye
Cricketnext.com is cricket news based
digital portal
April Acquisition JobStreet.com India Purchase price: US$2 million.
2006 (50%) Private Limited
JobStreet India is subsidiary of Malaysian
based recruitment firm.
February Acquisition Channel 7 Purchase price: Rs 600 million.
2006 (50%)
Channel 7 is Hindi news channel of Jagran
Prakashan.
October Acquisition Global Broadcast News Subsidiary of SRH Broadcast News
2005 (51.01%) Limited Holding Private Limited
October Acquisition CommoditiesControl.com Purchase price: Rs 12.5 million
2004 (100%)
M/S Agri Informatics India Private Limited
subsidiary was acquired.

Figure 283) Television Eighteen, key management
Name Position
Raghav Bahl Managing Director and Chief Executive Officer

R D S Bawa Chief Financial Officer
Anil Srivastava Vice President and Company Secretary
G K Arora Chairman
Vandana Malik Director
R N Bahl Director
Sanjay Chaudhuri Director
Manoj Mohanka Director
Hari Bhartia Director
The founding directors have a 27.12% stake (December 2006).

Page 247 of 260
Indian media market
RR. UTV Software Communications
Activities: TV and Film production and distribution, gaming

Ownership: Listed on the BSE and NSE (Walt Disney group is a minority
shareholder)
Recent strategic developments: Plans to raise US$100 million via Nasdaq listing

Market codes: Reuters: UTVS.BO
Bloomberg: N.A.
52 wk low: Rs 130.00
52 wk high: Rs 335.90
UTV is a leading television and film producer and distributor. In 2006, the company
sold its childrens television channel and acquired a number of gaming companies
in the UK and India.
UTV was established by Ronnie Screwvala in 1990 as television content provider
on Zee TV and public broadcaster “Doordarshan”. It is now listed on the BSE and
NSE; the Walt Disney group is a minority shareholder.
Figure 284) UTV, summary financials
Total Revenue 948.8 1,124.6 1,767.9 2,084.1 29.9%

% Change 18.5% 57.2% 17.9%
Net profit (Loss) 91.8 46.5 162.4 142.2 15.5%

% Change -49.3% 249% -12.4%
% Net Margin 9.7% 4.1% 9.2% 6.8%

Page 248 of 260
Indian media market
2007 February – Announcement of plans to raise US$100 million via Nasdaq listing
2006 December – sale of Hungama TV to Walt Disney for US$31 million
September- Walt Disney purchase minority stake for US$ 14 million.
August- UTV, FOX, Sony Pictures and Will Smith’s Overbrook sign film production
agreement worth US$37 million.
2005 September- Animation programming, production and merchandising agreement
with BKN New Media, Inc worth US$10 million.
September- Joint venture agreement with Astro (Malaysia) for launching two new
kids based television channels in South East Asia.
March- Listed on Mumbai and National Stock Exchanges. Stocks oversubscribed
26.46 times.
March- Astro acquire 25% stake in Hungama TV.
February- Ten year distribution contract for 130 film titles with Miramax
International Film Corporation.
Divested wholly owned subsidiary “ UTV International (Holdings) Limited, BVI.
2004 December- Aditya Shastri appointed as Chief Operating Officer of UTV Motion
Pictures Production.
August- Diluted 44% stake in Vijay Television Limited for Rs 310 million to Star
India.
July- Founder and Chief Executive Officer purchase 12% equity from Star India for
Rs 117 million.
July- Ronnie Screwvala acquire 12% in Capital Communication CDPO Inc
subsidiary.
2000 Ventured into Internet content production through wholly owned subsidiary “The
United Entertainment Solutions Private Limited”.
1998 March- Rebranded as UTV Software Communications Limited
Acquisition of Ram Mohan Biographies (animation segment).
Entered broadcasting arena through purchase of Vijay Television Limited.
1995 May 1995- Ventured into post television content production segment through
majority stake (54.6%) acquisition in Laezer Production Private Limited
1990 June- Incorporated as private limited with television content provider to
Doordarshan and Zee Telefilms
Activities
Television production
UTV is a well established producr of television programming across a wide range of
genres (including animation). Most of the content is Hindi language content and
key customers include Star TV, Sony, Zee TV, Surya TV, Udaya TV and the BBC.
The company is also active in a range of media facilities activities such as dubbing.
In November 2006, UTV formed a joint venture with the Malaysian broadcaster,
Astro to develop broadcast and online media offerings for young people
Film production and distribution

Page 249 of 260
Indian media market
UTV produces and distributes both small and big budget Hindi films. It has formed
a number of alliances with other producers and distributors in both India and
overseas.
Gaming
UTV has recently expanded into the gaming market through the acquisition of
majority stakes in two gaming companies (Ignition Entertainment and Indiagames).
Financials
For the last full year (end March 2006), UTV, had total revenues of Rs 2,084
million, and Net profit of Rs 142 million, year-on-year Net profit decline of 12%.
Figure 285) UTV, financials
y/e; March (RS million) 2003 2004 2005 2006 CAGR
Revenues by type
Television 703.3 774.9 909.4 711.3 0.4%
Film 20.0 269.2 773.9 1,309.9 297.5%
Other content services 54.8 101.2 98.4 78.3 12.5%
Other revenues 200.3 15.2 36.3 47.8 -37.6%
Intra company -29.7 -20.7 -13.8 -15.5 -19%
Revenues by region
India n.a 977.0 1,518.3 1,598.9 28%
Overseas n.a 147.6 249.6 485.2 81.3%82
Total Revenues 948.8 1,124.6 1,767.9 2,084.1 29.9%
Net profit 91.8 46.5 162.4 142.2 15.5%
% Margin 9.7% 4.1% 9.2% 6.8%
Figure 286) UTV, segment analysis
Revenue (2006) Revenue (2006)
Other revenues
Other content 2.2%
Overseas
services
23%
3.6%
Television
33.1%
India
Film
77%
61.0%

Page 250 of 260
Indian media market
Figure 287) UTV , key transactions

December Acquisition Ignition UTV UK based gaming company

2006 (70%) Entertainment
Purchase Price: Rs 600 million
December Acquisition Indiagames UTV Mumbai-based gaming
2006 (51%) company
Purchase Price: Rs 680 million
November Joint venture Astro n.a. Joint venture to develop media
2006 (50%) for young people across South
East Asia
September Acquisition Hungama TV Walt Disney Purchase Price: US$30.5
2006 (100%) million.
September Minority UTV Walt Disney Purchase Price: US$14 million.
2006 stake
(14.9%)
March 2006 Acquisition Hungama TV Astro UTV divested minority stake in
(26%) Kids based television channel.
August 2004 Divestment Vijay Television Star India UTV diluted its majority stake
(44%) Private Limited for Rs 310 million.
July 2004 Minority UTV Ronnie Star India divested 12% stake
stake (12%) Screwvala for Rs 117 million
June 2004 Acquisition Capital Ronnie Purchase price: Rs 216 million.
(12%) Communication Screwvala
CDPQ Inc
June 2004 Minority UTV Ronnie Star India divested stake for Rs
stake (3%) Screwvala 29 million.

Page 251 of 260
Indian media market
Figure 288) UTV, key management

Name Position
Ronnie Screwvala Chief Executive Officer

Ronald D'mello Chief Operating Officer
Zarina Mehta COO Broadcasting, UTV
Deven Khote Director - Post Production and VFX, USL
Ronnie Screwvala and close associates control 33.1% of the equity (June 2006).
Walt Disney acquired a 14.99% stake in September 2006 and Macquarie Bank
acquired a 6.6% stake in November 2006.
Figure 289) UTV, largest shareholders

Promoter and associated companies 33.07%

Walt Disney 14.99%
Macquarie bank 6.6%

Page 252 of 260
Indian media market
SS. Wire and Wireless India
Activities: Cable TV operator

Recent strategic developments: Roll-out of CAS technology
th
Market data Share price performance (since 10 Jan
2007)
Market codes: Reuters: WIWI.BO
Bloomberg: WNW@IN
52 wk low: Rs 80.00
52 wk high: Rs 139.00
Wire and Wireless India (WWI) is the cable TV operation of the Zee Telefilms
group. In January 2007, WWI was spun out as a separate subsidiary with its own
listing on the BSE and NSE. WWI is India’s largest cable TV operator with a reach
of 6.7 million subscribers in 36 cities. The company’s network consists of over
4000 Local Cable Operators (LCOs).
WWI current focus is on growing its analogue and digital subscriber base and on
rolling out conditional access technology to its existing subscribers.
Figure 290) Wire and Wireless India, summary financials
y/e March (Rs millions) 2006
Net sales 407.6

Other Income 19.2
Total Income 426.8
Net Loss -171.4

Page 253 of 260
Indian media market
TT.Zee
Zee Entertainment
Activities: TV broadcasting,, with a focus on national entertainment

channels
Recent strategic developments: Acquisition of 50% stake in ten Sports
Market data Share price performance (last 12 months)

Market codes: Reuters: ZEE.BO
Bloomberg: Z@IN
52 wk low: Rs 96.66
52 wk high: Rs 311.55
Zee Entertainment is the entertainment broadcasting arm of the Zee telefilms

media group (controlled by Subash Chandra). The company was restructured in
late 2006/2007 into four separate companies.
Figure 291) Zee Telefilms Group, structure

Page 254 of 260
Indian media market
Zee Entertainment now operates Zee’s major channels in India and their overseas
distribution. The company launched its first channel in 1992 and this channel is
now one of India’s leading entertainment channels.
Figure 292) Zee Entertainment, channels

Channel Language Notes
Zee TV Hindi General Entertainment

Flagship channel launched in 1992.
Zee Cinema Hindi Film
Zee Studio Hindi Films
Zee Music Hindi / English Music
Zee Sports Hindi Sports
Zee Trendz English Fashion channel
Zee Cafe English Overseas programmes
In December 2006, Zee acquired a 50 % stake in the leading sports channel, Ten
Sports. The channel owns the rights to many leading sports events, including all
test matches played in Pakistan and a number of West Indies matches.
2006 December – Restructuring of Zee Telefilms into four separate groups
December – Acquisition of 50% stake in ten Sports
2005 October- Zee News Limited incorporated for managing current news and affairs.
April- Sued Board of Control of Cricket for Rs 16.3 billion on manipulating of
broadcasting rights tender in favour of Nimbus Communications.
2004 Divested stake in Padmalaya Films
November- Launched Hindi sports based channel “Zee Sports”.
Expansion into Hong Kong, Philippines, Indonesia, Japan and Thailand.
April- Foreign currency convertible bonds worth US$ 100 million listed on
Singapore Stock Exchange
2003 December- Partnership with Rajshri Productions for Hindi and regional films
distribution.
May- Bilingual (Hindi-French) film production in alliance with France TV and
Silhouette Films.
2002 April- Majority stake of 48.4% in ETC Networks Limited for Rs 250 million.
March- Acquisition of 64.3% stake in Padmalaya Enterprises Private Limited for
Rs 590 million. Direct stake of 32.8% in Padmalaya Telefilms.
2000 Stock split 1:10 with face value reduced at Rs 1 per equity.
1997 Joint venture agreement with Buena Vista Television (India).
1995 Launched Zee News and Zee Cinema channels.
1993 September- Listed on Bombay. National and Calcutta Stock Exchanges
1992 Launch of free-to-air Hindi general entertainment channel “Zee TV”.

Page 255 of 260
Indian media market
International reach
Zee has built up a substantial audience in overseas markets where there are large
Indian communities.
Figure 293) Zee Entertainment, overseas reach

Region Total subscribers (March 2006)
Americas 466,000
Europe 168,000
Africa 61,000
Asia Pacific 480,000
The restructured Zee Entertainment generated revenues of Rs 10,551 million in

2006.
Figure 294) Zee Entertainment, summary financials
(Rs millions) 2006
Net Revenue 10,551
Net profit 1,996
Net Margin 18.9%
Figure 295) Zee Entertainment, key management and directors

Name Position

Pradeep Guha Chief Executive Officer
Siddharth Jain Senior Executive- Distribution
Indranil Chakravarthi Senior Executive- Zee Studio
Bharat Ranga Senior Executive- Zee Cinema
Irswin Balvani Senior Executive- Zee Music
Himanshu Mody Senior Executive-Zee Sports
The promoter, Subash Chandra controls 44% of the equity.

Page 256 of 260
Indian media market
UU. Zee News
Activities: News broadcasting

Recent strategic developments: IPO in 2007
Market data Share price performance (last 12 months)

Market codes: Reuters: ZEEN.BO
Bloomberg: ZEEN@IN
52 wk low: Rs 31.00
Zee News is the news and regional channels company of the Zee Telefilms group.
The company operates a news channel, business news channel and six regional
language channels. In the new and business markets, Zee has an audience share
of approximately 12%-15% (the market leaders typically have a third of the
audience).
Figure 296) Zee News, channels

Channel Language Audience Notes
share (Q2
2006)
Zee News Hindi 15% National news channel

Zee Business Hindi 12% Business and financial news
Zee Telugu Telugu 4% Launched in 2005
Zee Marathi Marathi 43% Second largest in Marathi language
Zee Bangla Bengali 18% Bengali regional channel
Zee Kannada Kannada 4% Sicth largest in Kannada regional channels
Zee Punjabi Punjabi 13% Total market share of 64% ( combined with Zee
controlled ETC Punjabi).
Zee Gujarati Gujarati 21% Second largest in Gujarati channels

Page 257 of 260
Indian media market
The regional language markets present strong growth opportunities (compared to

English and hindi language channels) as television reach and penetration grows in
rural areas.
Zee News’s proforma financials for year end 2006 are revenues of Rs 2 billion.
Figure 297) Zee News, summary financials

y/e March, (Rs millions) 2006 9M 2007
Net Revenue 2,012 1,665
Net profit 162 93
Net Margin 8% 7%
Figure 298) Zee News, key management

Name Position

Kancharana Upendra Rao Director
Laxmi Narain Goel Director
Naresh Kumar Bajaj Director
Vinod Bakshi Director
As part of the restructuring of the Zee Telefilms group, existing shareholders in Zee
Telefilms were given shares in Zee News (in the ratio of 137 Zee News shares for
every 100 Zee Telefilms’ shares).

Page 258 of 260
Indian media market
1
World Bank 2004
2
ZenithOptimedia data
3
Heernet estimate
4
Heernet estimate
5
NRS 2006
6
Adex, ZenithOptimedia
7
Adex, 2005
8
ZenithOptimedia
9
Adex
10
WARC data
11
WARC data
12
Heernet estimates
13
IAMAI data
14
TRAI data
1515
TRAI Data
16
TRAI Data
17
TRAI Data
18
TRAI Data
19
TRAI Data
20
Economist Intelligence Unit
21
Mapsofindia.com
22
EIU, February 2007
23
Opportunities and challenges for investment in India, OECD
24
India census 2001
25
World Bank
26
World Bank
27
Zenith media, IRS
28
Census of India
29
Manorama Year book 2003
30
Population Census 2001
31
Census of India 2001
32
Opportunities and challenges for investment in India, OECD
33
Audience data (mid 2005) TAM Research
34
WARC 2002
35
Heernet estimate
36
TRAI data, March 2005
37
Foreign Currency Convertible Bonds.
38
(CAGR, 2003-2006)
39
www.cybermedia.co.in
40
IRS Company Source
41
IRS Company Source
42
Investment Report- CyberMedia (India) Limited. www.four-s.com
43
Three months audited (Red Herring Prospectus-Deccan Chronicle Holdings)
44
Foreign Institutional Investor
45
ABC (July-December 2003).
46
Corporate website.
47
IRS, 2006 Round 1
48
(NRS, 2003)
49
(NRS, 2003)
50
Figures from corporate website for Indian edition only.
51
Company data
52
Company data
53
(ABC, July-December 2003).
54
Company data
55
Company data
56
Population (2-10 million)
57
(NRS, 2003)
58
As reported in Mukta Arts Annual Reports 2005,2004 and 2003.
59
Fifteen months ending 31st March 2003.

Page 259 of 260
Indian media market
60
TAM Media Services, TG: 4+ Years, CS Market: All India (26th December 2004- 25th March 2005)-All English news
channels
61
TAM Media Services, TG: 4+ Years, CS Market: All India (26th December 2004- 25th March 2005
62
TAM Media Services, TG: 4+ Years, CS Market: All India (26th December 2004- 25th March 2005)-All Hindi news
channels
63
TAM Media Services, TG: 4+ Years, CS Market: All India (2004-2005)
64
(CAGR, 2004-2006)
65
Includes Sales of Television Software, Other News Delivery Avenues and subscription Revenue
66
Figures from Doordarshan Corporate Website.
67
Figures from Doordarshan Corporate Website.
68
Cricket and Hockey are favourite games which are usually broadcasted.
69
TAM, Q1 FY 2006-2007, All India, C&S 4+.
70
Hindi, Urdu and English.
71
(Allindiaradio.org, 2004)
72
Excluding Health care business segment.
73
Includes content, events and digital media PBT figures for four consecutive years.
74
Includes figure for media related business segments.
75
15 month ending June 2003.
76
9 month ending March 2004
77
(TAM Media Research, September 2005)
78
TAM Media Services CS 15+ Years (May 2006)
79
TAM TG: 4+ years, All India (April 2004-March 2005)
80
TAM Research - Absolute Channel Shares all india (April 2004-April 2005).
81
TAM Research
82
(CAGR, 2004-2006).

Page 260 of 260

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ABOUT THE AUTHOR

Heernet ventures limited

Third edition: March 2007

© Heernet ventures limited 2007. All Rights Reserved.

TERMS & CONDITIONS OF USE

© Heernet ventures limited

I) CURRENT TRENDS ............................................................................................................................................................. 13

© Heernet ventures limited

J. ENTERTAINMENT NETWORK ..................................................................................................................................... 139

© Heernet ventures limited

Figure 1) Sector drivers for the Indian media market........................................................................................................ 19

© Heernet ventures limited

Figure 41) Growth in number of mobile subscribers...................................................................................................... 58

© Heernet ventures limited

Figure 84) Readership of leading consumer magazines ............................................................................................... 94

© Heernet ventures limited

Figure 127) Deccan Chronicle, key shareholdings ........................................................................................................ 135

© Heernet ventures limited

Figure 170) Indian Express Group, periodicals.............................................................................................................. 165

© Heernet ventures limited

Figure 213) NDTV, channels .......................................................................................................................................... 197

© Heernet ventures limited

Figure 256) Shringar Cinemas, key management and directors................................................................................... 228

© Heernet ventures limited

© Heernet ventures limited

© Heernet ventures limited

Five trends for 2007

Competition in the Pay TV market

Rollout of new multiplexes

Newspaper market – new launches

© Heernet ventures limited

Free to air Increase in TV penetration driving Channels may lose audiences to

Filmed Growth in multiplexes (higher ticket Cinemas: There is the possibility of a

Increased revenues from Pay TV

Highest growth is in local language titles

Regulatory clarity for telephone

Consumer Circulation growth is strong, but Longer term impact of Internet on

Business Increased demand for business Longer term impact of Internet on

© Heernet ventures limited

Sector background – growth and reach

Growth in Indian adspend (98 – 2008)

Total adspend % change

Media reach (2005, 2006)

© Heernet ventures limited

Forecast for 2007 - 2012

Rs millions (2006) Revenues

Indian media market – Revenues (2006 - 2012)

Media Market Revenues % Change

Indian media market – Adspend (2006 - 2012)

Total adspend % change

© Heernet ventures limited

II) INVESTMENT THESIS

© Heernet ventures limited

Figure 1) Sector drivers for the Indian media market

Growing individual prosperity (equity and real estate boom)

Greater investment in product development

New technology ‘eliminating’ traditional bottlenecks (e.g.

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Economic and demographic factors

Strong sustained, economic growth

Growth in property and equity prices

Figure 2) Performance of the Indian stock market