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Kasturi & Sons Ltd (KSL), which runs The Hindu group of publications, is on the lookout for a new chief executive officer (CEO).
The development comes within three months of senior family members returning to The Hindu newspaper, leading to the exit of professionals holding key positions, including then CEO Arun Anant and then editor Siddharth Varadarajan.
KSL Chairman N Ram and Vice-Chairman N Murali have confirmed the development and said the CEO would be appointed before April.
"Since no family directors are willing to take up a hands-on role on business, we are looking for a new CEO. Besides, true professionalism means a mix of family directors/members and outside professionals," said Murali. (DRYING INK)
Ram said a committee was screening potential candidates for the post of the CEO. He added the CEO's role would be far and wide, given the challenging business environment.
According to sources, three people have been shortlisted.
Notably, K Balaji from the Kasturi family was offered the post of managing director in October, but he did not take it up.
It may be noted that Ram stepped down as the editor-in-chief of The Hindu in October and became the chairman of KSL and publisher of The Hindu group of publications, while his brother N Ravi took over as editor-in-chief of the paper and Murali as co-chairman of KSL. Ram's cousin Malini Parthasarathy became the editor of The Hindu.
These decisions were taken by the board after Chairman N Ram's casting vote went in favour of the changes.
The casting vote was necessitated as the 12-member board was split down the middle, with six directors supporting the changes and six opposing.
Those who reportedly voted in favour of the changes were N Ram, N Ravi, N Murali, Malini Parthasarathy, Nirmala Lakshman and Nalini Krishnan and those who voted against were Ramesh Rangarajan, Vijaya Arun, Akila Vijay Iyengar, Balaji, K Venugopal and Lakshmi Srinath.
After the entry of family members, Varadarajan resigned as editor of The Hindu, M K Venu as executive editor of the paper and Anant as CEO of KSL. Anant recently joined HT Media.
On business
KSL, which clocked revenues of around Rs 1,100 crore in 2012-13, is expected to report a marginal growth of around four-five per cent in 2013-14. However, profit, which was Rs 60-65 crore in 2012-13, may take a hit in FY14, sector sources said.
The drop in bottom line was attributed to the recently launched Tamil daily by KSL, which did not take off as expected. "The Tamil paper launch has affected the bottom line and was not along estimated lines," they said.
While conceding the environment was challenging, Ram and Murali said it was not unique for KSL, but for the entire sector.
"Our situation is not alarming," said Ram.
Experts pointed out that The Hindu had increased advertisement rates by 15-20 per cent in August, but, on the other side, the past two years' discount levels were very high. Industry sources have attributed the drop to the Tamil Daily which was launched by KSL last year.
"Tamil paper launch has affected the bottom line and was not on the estimated line,” they said.
| Circulation numbers of Hindu for top centres | |||
| Printing Centres | Average Qualifying Sales | ||
| (January-June 2013) | Average Qualifying Sales | ||
| (July-December 2012) | Difference | ||
| Chennai | 3,97,868 | 435634 | (-)37766 |
| Hyderabad | 1,61,688 | 180321 | (-)18633 |
| Coimbatore | 1,09,248 | 139827 | (-)30579 |
| Bangalore | 1,06,811 | 122520 | (-)15709 |
| Kochi | 75089 | 88625 | (-)13536 |
| Vijayawada | 65290 | 58022 | (+)7268 |
| Visakhapatman | 65808 | 69653 | (-)3845 |
| Noida | 1,12,712 | 1,17,794 | (-)5082 |
| Madurai | 76865 | 88210 | (-)11345 |
| Tiruchirapalli | 49283 | 53715 | (-)4432 |
