You are here » Home » Companies » Company Overview » Saregama India Ltd

Saregama India Ltd.

BSE: 532163 Sector: Media
NSE: SAREGAMA ISIN Code: INE979A01017
BSE LIVE 15:57 | 11 Dec 827.25 -5.85
(-0.70%)
OPEN

837.35

HIGH

838.10

LOW

817.00

NSE 15:57 | 11 Dec 825.25 -3.45
(-0.42%)
OPEN

835.10

HIGH

838.00

LOW

812.25

OPEN 837.35
PREVIOUS CLOSE 833.10
VOLUME 32516
52-Week high 953.55
52-Week low 200.25
P/E 114.74
Mkt Cap.(Rs cr) 1,440
Buy Price 827.25
Buy Qty 127.00
Sell Price 0.00
Sell Qty 0.00
OPEN 837.35
CLOSE 833.10
VOLUME 32516
52-Week high 953.55
52-Week low 200.25
P/E 114.74
Mkt Cap.(Rs cr) 1,440
Buy Price 827.25
Buy Qty 127.00
Sell Price 0.00
Sell Qty 0.00

Saregama India Ltd. (SAREGAMA) - Chairman Speech

Company chairman speech

ANNUAL REPORT 2000 - 2001 SAREGAMA INDIA LIMITED CHAIRMANS' SPEECH THERE COMES A TIME IN THE AFFAIRS OF MEN, SAID THE BARD, WHICH, WHEN TAKEN AT THE FLOOD, LEADS ON TO A FORTUNE... SAREGAMA INDIA LIMITED IS PRECISELY AT THAT MOMENT IN THE HISTORY OF ITS EXISTENCE. THE COMPANY HAS REACHED A CRITICAL THRESHOLD OF SUCCESS - MARKET SHARE AND FINANCIAL HEALTH - WHICH IT MUST NOW LEVERAGE AND EMERGE AS THE WORLD'S PREMIER INDIAN MUSIC COMPANY. THIS IS HOW WE EXPECT TO DO IT. GROWING BIGGER Over the last few years, Saregama adequately explored the predictable means of generating incremental growth. Result: a 17.3 per cent growth in volume in 2000-01 over the previous financial year. While this performance would have delighted most people, we at the company are clearly unimpressed. Because, in our opinion, we have only touched upon the alaap of what promises to be a rich and rewarding raga of success. To accelerate growth over the foreseeable future, Saregama will need to think out of the box - to manage its available catalogue with more creativity than it has done in the past, move its music closer to consumers (instead of the reverse) and take its music to places it has never been before. Saregama's growth in excess of the politely incremental can only transpire if the company evolves its market focus. From the well-penetrated urban to the under-explored rural. As a result, starting from the latter half of 2001-02, Saregama expects to re-orient its pricing, supply chain and distribution model to generate an increasing component of its income from the rural geographies of the country. GROWTH BETTER Growth alone will not be enough. Saregama will need to bring its cost structure down to a point where it can absorb a trough (at worst) without bleeding resources and ride a crest by maximising the surplus. Over the last year, Saregama embarked on the exercise to benchmark its costs in line with the global industry standards. This benchmarking - an interplay between people, assets and distribution - will ensure that the organisation is continuously rightsized for a reasonable throughput of business. Saregama also expects to accelerate this throughput through the creative management of content whose copyright costs have already been expensed. This is expected to translate the incremental revenue into profits for the organisation. GROWING CONFIDENCE The new Saregama is equipped to address the challenge of this 'bigger- better-stakeholder' cycle. Partly because it,is a re-invented company with a new spirit. More transparent. More energetic. More responsive. + Reflected in a stronger IRR orientation across the organisation. + Reflected in a change in the mood from the lethargic to the proactive, resulting in a pipeline of nearly ten films by highly visible film markets for release in 2002-03. + Reflected in a workplace that is more international in its outlook - more responsible, more professional, more demanding. GROWING STAKEHOLDERS The company expects to complete the virtuous cycle through the attractive reward of its shareowners. Saregama expects to unleash value more aggressively through the use sound of strategy (explained earlier). The company expects to report its performance completely and transparently to shareowners. The company expects to incorporate Best Practices and protect value through a more aggressive Corporate Governance process. While we have already embarked on the initiatives, the results will start getting noticed from the later part of the current financial year and into the next. As a result, the current year is expected to be one of consolidation while we expect to see attractive growth from 2002-03 onwards We expect that this re-invention - our third in three years - will have two outcomes. A more predictable business model, higher profits and increased value for shareowners over the foreseeable future. And the willingness to re-invent ourselves yet again by the time you get next year's annual report. Sanjiv Goenka Vice Chairman