Saregama India vice-chairman Sanjiv Goenka today said the entertainment company of RPG Enterprises was likely to begin production of television software shortly. Saregama, however, has a small presence in TV software with its only Tamil serial on the air for the past 10 weeks on Sun TV.
Speaking to the media after the company's 54th annual general meeting, Goenka said the proposed entry into TV software was recommended, among other things, by consultancy major Mckinsey & Co.
The consultant was appointed to evolve a model that would guide the future course of development of the group's entertainment business built by Saregama India Ltd, formerly Gramophone Company of India. However, Goenka clarified that the Saregama India board would take stock on the Mckinsey report by October 15. Based on the Mckinsey suggestions, Saregama would finalise its business plan by mid-October.
The implementation of the report would be aimed at accelerating growth of the company's entertainment business, spread over both film and non-film areas, making of FM software and a possible entry into production of TV software, especially animation films.
This is the second time the entertainment company has asked a consultant for advice. It had appointed Anderson Consultants for suggestions on cost control, and these were implemented in 1999-2000. They helped the company cut expenses in material costs in spite of a significant rise in raw material costs, particularly plastics.
Earlier, replying to the shareholders query, Goenka said the company was in talks with a handful of international music companies, including Universal and Zomba, for "repertoire sharing" arrangements. A decision on the issue was likely to be announced within next couple of weeks.
Goenka, who presided over the meeting in the absence of the chairman Rama Prasad Goenka, said the company was also looking at remaking "albums of old masters." Shareholders thanked the management's effort to bring out an "excellent annual report" but were critical for mass absent of directors from the meeting. Only three directors attended the AGM today.
Goenka said the company would record a better results in the second quarter of the current year compared with the first three months which experienced a loss. Without disclosing figures, he said the company would "definitely" bounce back to the black.
