A PROJECT REPORT

GIVING A

“BRIEF INSIGHT ON THE INDIAN MEDIA INDUSTRY”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF THE

DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

BATCH 2008-2011

UNDER THE GUIDANCE OF

Dr. AMIT GUPTA

PROJECT COODRDINATOR

By

ANIRBAN CHOUDHURY

MAHARAJA AGARSEN INSTITUTE OF MANAGEMENT STUDIES

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086

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 STUDENT UNDERTAKING

This is to certify that I have completed the Project titled “A BRIEF INSIGHT INTO THE
INDIAN MEDIA INDUSTRY " under the guidance of Dr. Amit Gupta in partial fulfillment
of the requirement for the award of degree of Bachelor of Business Administration at
Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of
work & I have not submitted it earlier elsewhere.

ANIRBAN CHOUDHURY

(ENROLLMENT NO. 0691471708)

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 ACKNOWLEDGEMENTS

I thank all those who have helped us to put these ideas, well above the level of simplicity
and into something concrete

I am very thankful to Mr Asesh Jyoti Dutta, All India Asset Head, Mr Amit Bansal,
Manager (IL&FS Financial Services Limited), and Dr. Amit Gupta, Faculty Member
(Maharaja Agrasen Institute of Management Studies) without whose valuable
suggestions, guidance and encouragement, this project work would not have been possible

I would also like to thank my colleagues at IL&FS Financial Services Limited, my friends
and seniors from (Maharaja Agrasen Institute of Management Studies) who have come
forward with their helping hands whenever any assistance has been sought

Anirban Choudhury

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 EXECUTIVE SUMMARY

A lthough the global economy was showing signs of weakness, the performance of many of the
E&M sector Companies in India during the first nine months of 2008 was buoyant. However,
after October 2008, the negative impact of the economic downturn on the E&M industry became
apparent. The prevailing slowdown is expected to reduce growth rates in the near future. Moreover,
the pace of change is likely to increase with greater economic pressure, as consumers seek higher
value from the content they consume and advertisers seek more accountability. Nevertheless, the
India E&M growth story continues to provide excellent opportunities.

Media segments that are currently experiencing declining revenues are not necessarily because of
declining demand. In fact, demand for E&M offerings appears to be increasing. What has changed
in some cases is the ability to monetise that demand. Industry must create new models to restore
that ability which is why there will be “no place to hide” from new models and dynamics across the
industry. Whatever the revenue model be it ad-funded, subscription-based or a combination of both
the key to sustainable revenue streams lie in providing a ‘content experience’ that cannot be readily
duplicated.

Monetising the increasing demand for E&M content, capitalising on evolving consumption habits,
and developing diverse new advertising revenue models are challenges that companies will need to
address. The slowdown presents an ideal time to differentiate through innovation of and
capitalization on new forms of collaboration across the entertainment, media and communications
value chains.

Therefore keeping all the above factors in mind the research topic was chosen as a ‘Brief insight
into the Indian media industry’. The primary focus of this project was to present a comprehensive
analysis of the media industry in India, its current position being the main topic of concern. India’s
E&M industry has witnessed remarkable buoyancy in growth in recent years and has consistently
outpaced growth in domestic GDP. While annual average growth in nominal GDP was 14.48% over
the period 2004-08, the E&M industry grew by 16.6 % over this period. In the wake of the global
economic crisis, the trend has been reversed in 2008 and is expected to continue in 2009, with the
growth of the Indian E&M industry moderating to a larger extent relative to the overall economic
activity.

The project report has been divided into two broad categories; the first portion gives a brief
introduction of E&M industry. Starting from the very roots of the industry to its current position,
every aspect has been covered up. For the sake of simplicity the current position of the industry has
been presented in the form of company profiles of five major E&M companies in India which
include:

• Zee Entertainment Enterprise Limited

• Network 18 Media and Investment Limited

• News Delhi Television limited

• HT Media limited

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 • Star Asia Private limited

The second part of the project deals with data analysis and interpretation and its comprehension in
the form of findings and conclusion. Basically in order to find out the most profitable and efficient
company among the five selected a comparative ratio analysis of these company’s financial
statements is done. Hence in the latter part of the project the main concentration has been provided
on this ratio analysis only.

The comparative analysis has been done on the basis of several parameters which were the growth
of the company, its market capitalization, the margins earned or losses incurred by the company
during the period of research, then the liquidity and solvency position of the company, the returns
earned by the company and finally the turnovers of the various assets of the company.

In the comparative analysis of the ratios Star Asia Private limited has not been considered as it is a
private limited company and the norms for such type of companies vary enormously with the public
companies because of which the results are incomparable, therefore in the final analysis only four
companies are there.

Now after a thorough analysis of the four companies on the basis of the five parameters of
ratio analysis which includes growth ratios, margin ratios, return ratios, turnover ratios and
solvency ratios once can easily conclude that HT Media limited is the most successful
companies of all, as it has performed in a better manner in all the aspects and provided
superior results.

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