I believe a positive Zidd is the most significant attribute that determinessuccess. At DBCL Zidd is our clarion call; the resilience the determination thestrength to change and be at the helm of change. Our Zidd has driven us to becomeIndia's largest Newspaper Group. To celebrate this spirit of Zidd we launched ourcorporate campaign - 'Zidd Karo Duniya Badlo' on 27th March 2016 whichelucidates how positive persistence can change the world around us.
Over the years our Zidd to provide value to our readers and stakeholders hasled us to propel circulation expand our presence to newer geographies provide anenriching reading experience and strengthen operations thereby making our businessprofitable.
Dainik Bhaskar is India's largest circulated daily (Source: ABC jd'15) and the 4thlargest newspaper in the world
(Source: WAN IFRA World Press Trends 2015).
DBCL has a AAA rating by CARE (One of India's leading credit rating agency) duringMarch '16. This reflects the Company's leadership position the lowest financial riskprofile and highly efficient operational strengths. The Group was also awarded with 64national and international awards under various categories.
DAINIK BHASKAR IS INDIAS LARGEST CIRCULATED DAILY AND THE 4TH LARGESTNEWSPAPER IN THE WORLD.
THE GROUP WAS ALSO AWARDED WITH 64 NATIONAL AND INTERNATIONAL AWARDS UNDER VARIOUSCATEGORIES.
During FY16 the Indian economy continued to restore its macroeconomic stability withpro-reform policy initiatives low interest rates decline in fiscal deficit and moderateinflation. The country is growing as a consumer economy and both urban as well as ruralmarkets offer a humongous growth potential. As per FICCI KPMG - 2016 the major factorthat has driven the growth of Hindi and vernacular print publication is the high GDPgrowth rate of Hindi speaking states as against the national growth rates. Risingaspirations growing disposable income and supportive government policies have helpedcreate an overall macro picture of positivity.
AT AROUND MORE THAN USD 1 BN DBCL HAS THE HIGHEST MARKET CAP AMONGST LISTEDPRINT MEDIA COMPANIES IN INDIA.
Growing income levels and transforming demographics have spurred the spending power inTier-II and Tier-III cities of India. Besides rising literacy levels is intensifying thequest for knowledge thereby helping media gain prominence in every pocket of India.Advertising spend as a percentage of GDP for India is comparatively very low than theother developed countries providing an opportunity for the media industry in India togrow. At DBCL we are leveraging this growing opportunity with rigour.
Though the scenario is favourable for the Indian media industry there are challengesto be tackled. Moderate growth and high inflation could impact the advertising revenues ofcompanies like us thereby affecting our overall growth. The digital platforms are gainingappeal and consumption of news on this medium is gaining ground rapidly. We are operatingin a highly competitive environment that is subject to innovations changes and varyinglevels of resources available to each player for their businesses.
However at DBCL we are geared to combat these challenges by adopting a three-prongedstrategy focussing aggressively on editorial circulation and Advertising Yield. This is atestament of our Zidd to sustain leadership position in this challengingenvironment.
We consign to a strong editorial strategy in our newspaper. Our Zidd is to helpenhance the knowledge of our readers by offering a wholesome product relevant to varioustarget groups.
WE SIGNED AN AGREEMENT WITH DALE CARNEGIE UNIVERSITY
TO TRAIN ~3000+ JOURNALISTS ENSURING OUR RESOURCES ARE ALIGNED WITH THE EDITORIALPHILOSOPHY AND GUIDELINES.
Kendra Mein Pathak' (Reader at the Core) is our unwavering commitment and guidingeditorial philosophy. In line with this editorial policy we have undertaken severalunique initiatives like No Negative Monday' and Content Jacket on Sunday'.No Negative Monday' is one of the most awarded campaigns with 21 awards.
During the year the circulation revenue grew by 16% to ' 4356 Mn for FY2015-16 as compared to ' 3755 Mn for FY 2014-15. During the last 5 years thecirculation revenues have doubled from ' 2144 Mn in FY 2010-11 to ' 4356 Mn in FY2015-16 which is largely driven by yield growth.
DURING THE LAST 5 YEARS THE CIRCULATION REVENUES HAVE DOUBLED FROM ' 2144 MNIN FY 2010-11 TO ' 4356 MN IN
FY 2015-16 WHICH IS LARGELY DRIVEN BY YIELD GROWTH.
Our reader-engagement drives like Jeeto 10 Crore' Magazine in Education'and Junior Editor' helped us increase our readership base. Our high-quality contentand enriched product continue to create strong affinity with readers leading to growth incirculation despite increase in newspaper cover price.
Monetisation of our brand strength was a crucial agenda undertaken in FY16. Weemphasised on Right Price'. Our aggressive direct selling techniques enabled oursales teams to drive the agenda efficiently. Our comparative circulation strength vis-aviscompetition gave us an opportunity to improve advertising yields. We identified yieldimprovement centres in each state and drove this through monitoring and control. Wefocused on driving knowledge-led agendas for readers as well as advertisers which helpedus build brand loyalty and deeper relationships in the marketplace.
We continued to maintain a strong focus on ensuring efficiencies on the operating side.We reduced newsprint consumption developed more sources for ink and plates forcompetitive pricing consolidated our vendor base to cater to different geographical needsof respective units.
Our growth strategy has focused on expanding the Dainik Bhaskar' brand in newregions; markets that demonstrate higher economic potential and growth rate than India'sGDP. During FY 2013-14 we forayed into Bihar and within a year we have emerged as astrong player enjoying reader appreciation. Dainik Bhaskar now has presence in PatnaBhagalpur Gaya and Muzaffarpur in Bihar. Our strong hold in Bihar coupled with oureditions in Jharkhand offer complete Bihar and Jharkhand' geography to anadvertiser.
We recently launched DB Post English daily in Bhopal. This was a natural extension ofour leadership in the region and a strategy to leverage an untapped local segment.
We also strengthened our radio business and acquired 13 new radio frequencies in thePhase III auctions totalling to overall 30 stations. Today 94.3 MY FM is the fastestgrowing radio network in India.
MY FM ACQUIRED 13 NEW RADIO FREQUENCIES IN THE PHASE III AUCTIONS TOTALLING TO OVERALL30 STATIONS.
We envisioned that Hindi had a huge opportunity when it came to making a mark on thedigital platform and went against the popular notion that digital was a medium best servedin English. DB Digital is driven by the philosophy to be a content differentiator offeringa real-time bouquet of hyper- localised news. This Zidd has led to dainikbhaskar.comto emerge as the No. 1 Hindi news website and No. 2 website across all news websites inIndia. DB Digital portals reached 1.2 bn page views and 34 mn unique visitors in March16 along with more than 6 mn app downloads.
DB DIGITAL PORTALS REACHED 1.2 BN PAGE VIEWS AND 34 MN
UNIQUE VISITORS IN MARCH '16 ALONG WITH MORE THAN 6 MN APP DOWNLOADS. (Source:Google Analytics)
At DBCL people are the driving force behind the success of our strategic initiatives.It's the commitment skill-set and innovative approach of the people helping us moveforward with resilience. We imbibed a significant focus on capability development andcareer progression for our employees. We also introduced some trendsetting policies forour employees such as Shubh Laxmi Saubhagyawati Bhav Sparsh Special Leaves Parents andIn-laws Mediclaim Policy and Ek Din Bhaskar Mein.
Going forward we will further strengthen our content strategy and deepen penetrationin our markets. Besides print we will continue to invest in our presence across radio anddigital platforms which are a core part of our overall growth strategy. With the risingdemand for Indian language- specific content we are well poised to leverage ourcompetitive advantage and demonstrate stronger performance in the coming year.
At DBCL we are committed to drive a positive change in the society through ourextensive presence. We addressed some of the persistent challenges in the areas ofeducation environment and community development through our CSR initiatives.
I would like to convey my gratitude to all our employees and business associates fortheir contribution towards the Company's success. I also take this opportunity to thankall stakeholders for their co-operation and support. Going forward as we continue toprogress in line with Zidd Karo Duniya Badlo philosophy I look forward to workingtogether to create high stakeholder value across all aspects of our business and socialcommitments.
With warm regards
Ramesh Chandra Agarwal