Investor: Blackstone Group
Investment Value: $275 mn
UEL Chairman Ramoji Rao was quoted as saying
that “the company had several financing options, including an initial public offering, but we went with Blackstone because we wanted to leverage the group’s experience and track record in the global media sector, and which has holdings in some of the fastest-growing media firms in the world that include Sirius Satellite Radio, VNU, CineWorld and Universal Orlando.” No doubt, a good decision by UEL, as the industry where the group is dominant has definitely changed over the last few years. Due to increased competition, margins of Eenadu Group have eroded. And, therefore, a capital infusion seems quite timely for the company.
Amidst the deluge of PE investments into the Indian telecom and realty sectors, Indian media was definitely not a silent viewer. It got its fair share of PE attention when Blackstone, the world’s largest leveraged-buyout firm, pumped in $275 million into Ushodaya Enterprises Ltd. (UEL) to pick up a 26% stake in the Eenadu Group that owns the leading Telugu daily Eenadu and one of the largest private television networks in the country, ETV. However, according to sources, Blackstone has subsequently reduced the size of the planned deal and, under the amended terms, it is looking at a 14% stake for Rs.590 crores or a little less than $150 million in UEL – all due to hurdles in obtaining the green signal from the Foreign Investment Promotion Board. But, according to latest reports in leading news dailies, Blackstone has succeeded in getting the Finance Minister P. Chidambaram to formally sign on a revised deal to invest around $150 million in UEL. It seems that the deal is finally taking shape.
Investment Value: $275 mn
UEL Chairman Ramoji Rao was quoted as saying
that “the company had several financing options, including an initial public offering, but we went with Blackstone because we wanted to leverage the group’s experience and track record in the global media sector, and which has holdings in some of the fastest-growing media firms in the world that include Sirius Satellite Radio, VNU, CineWorld and Universal Orlando.” No doubt, a good decision by UEL, as the industry where the group is dominant has definitely changed over the last few years. Due to increased competition, margins of Eenadu Group have eroded. And, therefore, a capital infusion seems quite timely for the company.Amidst the deluge of PE investments into the Indian telecom and realty sectors, Indian media was definitely not a silent viewer. It got its fair share of PE attention when Blackstone, the world’s largest leveraged-buyout firm, pumped in $275 million into Ushodaya Enterprises Ltd. (UEL) to pick up a 26% stake in the Eenadu Group that owns the leading Telugu daily Eenadu and one of the largest private television networks in the country, ETV. However, according to sources, Blackstone has subsequently reduced the size of the planned deal and, under the amended terms, it is looking at a 14% stake for Rs.590 crores or a little less than $150 million in UEL – all due to hurdles in obtaining the green signal from the Foreign Investment Promotion Board. But, according to latest reports in leading news dailies, Blackstone has succeeded in getting the Finance Minister P. Chidambaram to formally sign on a revised deal to invest around $150 million in UEL. It seems that the deal is finally taking shape.
brand in the world? We’re sure your mind is oscillating between the European & American giants (GE, Whirlpool) or the Korean chaebols (LG & Samsung). Not even in your wildest of imaginations would you drum up the name of a Chinese brand to that question. But well, Haier has indeed been going around town, loudly telling anyone who’d care to listen, that it indeed holds the distinction! Not surprising, given that it is the largest selling white goods major in populous China.
tiated, King Khan bagged the Kolkata franchise of IPL a few months ago - for an estimated $75 million - under the banner of a new sports and games division created under his production company Red Chillies Entertainment. At the time, SRK’s detractors said that playing hockey in college and playing a star coach on-screen for a hockey team (Chak De India) is no claim to fame in the actual world of sports, but Shah Rukh’s keen business vision, is already proving naysayers wrong.
as movies generally get released later in Tier I and Tier II cities, giving an additional impetus to piracy. One such victim was the hallmark movie Chak De. Reveals Piyush Kant of Rediffusion DY&R, the PR spokesperson for PVR Cinemas, to 4Ps B&M, “Chak De did phenomenal business in the metros, but in smaller towns, it was released after 2 months. The success of the film led to people from small towns to unwillingly buy pirated versions.” Reports of videos being pirated even before films are released is a common phenomenon. Says Akash Taneja, Executive Director, Institute of Intellectual Property Development, FICCI, “Estimates say Bollywood alone suffers losses to the tune of approximately Rs.3,000 crore every year, with films losing as much as Rs.2,000 crore annually.”
one and Cargill sees India as one of the largest consumer markets. Especially in edible oil, we see a constant growth; and so the parent company is also excited about the edible oil business in India.
on the basis of requirement of the target segments and the brand. We are indeed not made for masses and our target audience is the upper segment of the society. But I also believe that this norm is applicable for all luxury brands in the world, which focus only on a certain segments of the market. In India too, this market is growing phenomenally well. This is also tempting luxury brands from all over the world to come into India. However, the true blue luxury labels are yet to enter the Indian retail mart. We’ll also introduce new brands in 2008 and our focus would be on the elite class. They are our preferred customers and I think that apart from low purchase products, everybody has a certain target audience, where they want their product to do well. For example, the elite watches market is growing at an extensive 40% and for a brand like Tag Heur, we target not only the elite class, but generation next who can afford such price levels. So depending on the product & brand, LVMH preferentially adopts a strategy. 
former CEO, Mahathir Mohamad, was similar to the corporate one of Ratan Tata, current CEO, Tata group. Both dared to dream about a ‘Nationalist’ car. In the early 1980s, Mahathir decided that he would launch an ‘Islamic’ model, Proton, which would also sell in global markets. In the 21st century, Tata has forced a change in global mindsets; he talked of the world’s cheapest car at $2,500 that will be designed and made in India. Both were ridiculed.
India before he became better known as the suave television anchor and sophisticated media entrepreneur. But for the latter two incarnations, Roy would be a deeply embarrassed man in contemporary times. Every time his news channels NDTV 24x7 and NDTV India touch an opinion and exit poll, the actual election results are so far off the mark that Roy and his merry band of pundits, psephologists and commentators start searching desperately for excuses to justify why their exit polls were worse than many forecasts made by asserted astrologers and tarot card readers. Yes, things have reached such a stage in mainstream media that Bejan Daruwala and Ma Prem Usha have more credibility when it comes to reading the mind of the voters than Roy and the ebullient Dorab Sopariwala. Of course, to be fair to Roy, he and NDTV are not the only culprits when it comes to hopelessly failing to forecast electoral outcomes. Virtually all mainstream TV channels fall into the trap. Says psephologist and political analyst Yashwant Deshmukh whose C-Voter conducted exit polls on behalf of Zee News, “Quite obviously, the exit polls of late have not been able to accurately predict electoral outcomes. Some soul searching is in order.”
only reality; it’s only fitting that the last of the acknowledged 4Ps (Promotion) takes precedence over all else. No wonder, this most flamboyant P is fast becoming a fav of not just Armani-suited honchos in corporate boardrooms; but also of our ‘Dhoti’ toggled politicians. Politicians ranging from Mahatma Gandhi to Sharad Pawar have always invested in the print media; and all major political parties already boast of their own newspapers & magazines, as mouthpieces. But now, Television is emerging as the new ‘promotion’ phenomena amidst these sons-of-the soil...
of NIIT Ltd, Asia’s largest IT trainer and amongst the top 20 India’s infotech firms. For the last 25 years, NIIT has dwelt upon its time-tested innovative IT franchising model to create a wave of entrepreneurship across the country. Its innovative and pioneering acts have kept it miles ahead of competitors. Its inherent core competence to keep up with industry demands has greatly helped it reach this position. Introduction of industry specific courses taught by practitioners rather than theoreticians, the conceptualization of dual qualifications and the more recently-introduced tailor-made courses for engineers as well as industry people are amongst the breakthrough strategies which sets NIIT apart from its peers. All through these years, it has focused on instructional design, delivery and education process management, resulting in successful delivery across diverse audiences. The firm firmly believes in “think continuum, act consistent” and it is its sheer belief that has turned NIIT into a local organization with a global face. Venturing into the unrepresented pockets with potential to provide students with cutting-edge ideas has been the hallmark of this pioneer in professional IT education franchising. Its success has been primarily due to its standardization of the brand, clear division of labour between the franchisees and franchisors. Most important, NIIT believes in students’ experience. The polished and glittering graduate diamonds are its biggest USP. But it has to now think macro, not micro. 
and the ability to adapt to changes has proved to be vital for the turnaround story of Tulip IT Services. From being a mere packaged software re-seller, to being reckoned as one of the largest wireless solutions company in India, Tulip has certainly come a long way. Over the years, the company has moved up the value chain by using telecom as a tool. Its unique combination of services – Network Integration (NI), corporate data connectivity & rural connectivity, and infrastructure management services – distinguishes it from its competitors who are primarily either network integrators or telecom service providers. The realisation that the gap between limited telecom infrastructure and connectivity requirements can be amply overcome by using wireless technology heralded Tulip’s success. Wireless networking is the future and Tulip is a near perfectionist in it. It has used wireless networking to provide connectivity at a reasonable cost successfully. Speaking to 4Ps B&M, a company official exuded, “We make connectivity possible using wireless technology and this is our USP.” This has helped Tulip to tap areas which have not been traditionally addressed by its rivals. Their innovative solution has yielded rich dividends for all the stakeholders and has helped remove the ubiquitous digital divide to a great extent. Consistent focus on niche segments and continuous exploration of the emerging disciplines in the field of technology is what has kept the company ahead of its competitors. A strong WAN team & base, technical strength, multi–locational countrywide presence, ability to provide connectivity using wireless at reasonable cost et al, well supported by the profit oriented policies of the company have been instrumental in seeing the company through the slowdown.
who coined the term Knowledge Process Outsourcing (KPO) in Indian IT Industry. The reason behind such christening was to distinguish Evalueserve’s offering from those of established BPO firms. Ashish, the Global COO of the company in an exclusive interview with 4Ps B&M reveals his take on the Indian KPO industry. Excerpts from the interview:
and leading the change was Vodafone Essar’s Marketing and New Business Director, Harit Nagpal. And what a brand transition it was, accompanied by an even bigger media blitz. Overnight hoardings, signboards and kiosks across the country changed from the Hutch pink to the Vodafone red; the little pug hogged the ad space on the telly tube telling consumers that change is indeed good; and the rest is the stuff of legends. Harit believes that the transition is probably the largest brand change ever undertaken in India and arguably as big as any in the world. “It is even larger than our own previous brand transitions as it touches over 35 million customers, across 400,000 shops and thousands of our own and our business associates’ employees,” avers Harit, who joined forces with O&M to device the communication change that was simple, yet effective! Aimed at making the Indian masses aware of Hutch’s new makeover, the campaign continued till the message sunk in, to be followed immediately by the magic box commercial, which for the first time spoke about bundling handset in the GSM space. Harit Nagpal certainly likes to waste no time!
we can see more excitement in the category through this. In 2008, there would be a lot of new communication and the Vodafone brand would go beyond the pug. However, network would always be a part of the package and whenever we have to talk about the network aspect of the brand, one would see the pug, but in the others it would depend on really what message are we trying to get across to the end customer. Also get set to see new products from Vodafone coming into India.