Zee Telefilms To Focus More On Delivery

Subhash Chandra-promoted Zee Telefilms Ltd (ZTL) has slashed its ADR size following a decision to focus more on delivery rather than content. The ADR issue, originally pegged at about $1.5 billion, will be pruned to less than $1 billion as it is likely to use a `mix of funding' for its expansion purpose as also the change in its strategy.

Pointing out that there would be a significant reduction in the ADR issue which Zee Telefilms has lined up, ZTL vice-chairman and managing director, Vijay Jindal, told Business Standard, "The original ADR issue size was an enabling resolution. We will raise (through ADR) only that much (money) which is needed by us."

 

According to Jindal, the final audit work on the ADR issue is likely to be completed in about three weeks time. The details of the ADR issue will be discussed at an investors' meet, slated to be held later this week.

Earlier this year, when ZTL had announced it plans an ADR issue of about $1.5 billion, the industry had gasped as it would have been the country's biggest ever ADR issue till date.

ZTL, through Siti Cable, has lined up a strategy to capitalise on its existing subscriber base of about five million in India for delivery of other services like those related to Internet through the same pipe.

"We'll use part of the money raised through ADR and other means for expansion of Siti Cable and strengthening our delivery mechanism," Jindal said.

Though Jindal refused to divulge further details, cable and satellite industry sources indicated that the company has lined up significant _ close to about Rs 400 crore _ to beef up its delivery mechanism which will bring to subscribers in their homes not only TV channels, but a host of other services, including those related to Internet.

Last year, Zee set up e-Connect Ltd with Jindal as co-promoter. The company is taking care of Zee's forays into new media, including developing Internet content.

As part of this strategy, Zee is aiming to wire up the whole of the country and have hybrid fibre cable network which will enable deliver data, voice, audio and other services at high speed.

ZTL recorded a 160 per cent jump in its profit after tax at Rs 333 crore for the year ended March, 2000 against Rs 128 crore in the previous year. This year's unaudited results, for the first time, include operations of Zee Multimedia which was merged during the year.

A recent significant feature has also been picking up of 61 per cent equity stake in Asianet Communications which, in one stroke, gave it a strong foothold in the broadcast world of South Indian languages.