The Hinduja Group‘s InCable Network has a new head. Rajiv Bajaj, president, IN TV, the programming wing of the MSO has proceeded on long leave.

Ashok Mansukhani, executive V-P, corporate services, HTMT (the group‘s information technology, media and telecommunications umbrella company) will have additional charge of IN TV. It is not clear at this juncture whether this is a temporary arrangement or not.

Bajaj joined IN Network in 1999 from the Mumbai daily newspaper The Daily where he was editor (The Daily closed down last year).

It came as a bolt out of the blue. Zee Telefilms and ETC Networks this morning informed the Bombay Stock Exchange that they have signed a memorandum of understanding to buy out the major chunk of the promoters‘ - Yogesh Radhakrishnan, Yogesh Shah and Jagjit Singh Kohli - stake. The amount: Rs 178.40 million, for 5.66 million equity shares, which represents 48.38 per cent of the issued and paid up share capital of ETC.
At this level the pricing per share works out to around Rs 31 per share. The ETC share closed at Rs 34.50 on Friday on the BSE.

ETC Networks, runs the ETC Punjabi and the ETC music Channels and the company‘s promoters view the arrangement as a strategic investment by Zee Telefilms.

Subject to the necessary corporate and regulatory approvals, Zee and ETC informed the BSE that the former also intends to subscribe to additional ETC equity shares of a total value of Rs 70 million at a price to be determined by the market regulator Securities and Exchange Board of India ( SEBI) guidelines on a preferential basis.

ETC Networks informed the BSE that its board will meet on 25 February to consider, inter alia, the MoU and offer of Equity Shares on Preferential basis.

Meanwhile, a press release issued by ETC says both the companies are currently seeking regulatory approvals. Zee will be making an open offer in accordance with Sebi guidelines.

Zee is also planning to acquire additional stake in ETC through preferential allotment. On completion of both the transactions, Zee is going to be the majority shareholder in ETC with approximately 56 per cent stake.

ETC has been advised by SSKI Corporate Finance Limited on this transaction.

Commenting on the announcement Jagjit Singh Kohli, promoter and managing director, ETC Networks Ltd. said: "ETC brands have been nurtured to bring it to a leading position both in music and Punjabi segment. As part of the Zee Network, we will have tremendous opportunities to build synergies. Zee‘s international presence provides ETC a window to global audiences, which hitherto was not available."

Sandeep Goyal, Group Broadcasting CEO of Zee Telefilms said today: "This strategic acquisition is another step in Zee‘s plan to achieve world leadership in key content segments serving the South Asian diaspora. It puts us in an extremely competitive position in the Music and Punjabi segments and is a foundation for building more value-creation opportunities.

Management : The day-to-day operations of ETC will continue to be managed by the existing management team headed by Jagjit Singh Kohli. The management team consisting of all three executive directors will continue with the day-to-day operations of the company.

Synergies : As a result of this transaction, the companies believe there will be improved content offerings, which will drive viewership and subscriber fees. Zee will bring its strength in sales and marketing to the Punjabi and music channels and provide a global platform for ETC content, especially for the Gurbani rights.

Time it will take for Zee to complete transaction : Since Zee intends to acquire more than 15 per cent shareholding in ETC, Zee will be making an open offer to all shareholders of ETC in accordance with Sebi guidelines. The entire process is expected to be complete in approximately three months after taking all regulatory approvals.

Motion pictures seem to be the only new Nimbus venture that has taken off with a measure of success in the last couple of years.
While plans to launch TV channels and portals have been stuck for various reasons, movies may well be the next ace up the company‘s sleeve as it unleashes six Hindi, regional and international film productions in the next two years.

The company reportedly sunk in approximately Rs 79 million in the motion picture business as in initial investment.

The Sanjay Dutt starrer Sarhad Paar, announced in late 1999, is finally taking shape. To be launched on 20 February, the film is to be directed by Raman Kumar and is co-scripted by Akash Khurana, Nimbus chief operating officer, movies and music.

According to Khurana, Nimbus Motion Pictures will encompass multi-genre, multi-budget and multi-language movies. As with its television content, which Nimbus produces in eight Indian languages, the movie division too has adopted a portfolio approach with films being made in six different languages.

The company has firmed up plans for six Hindi and regional language films to be released within two years. Also on the cards is an international production, an English film that will boast a foreign crew and cast. To be launched by September 2002, it will be an erotic thriller and is to be shot entirely in Goa. Khurana says Nimbus is tying up with a major production house in the US for this venture, which is slated as an independent film and will not be shot in studio format.

The motion picture division that was activated in early 2000 with the launch of a Marathi film, Ek Hoti Waadi, is looking towards an annual turnover of Rs 200 million. Nimbus, says Khurana, is also planning to enter the telefilm arena, but is waiting for "the economic climate to improve, and projects get more affordable for channels."

Even as Sarhad Paar takes shape, a Telugu film to be directed by Suresh Krishnan will be kicked off by July 2002. Also in the pipeline are a Bengali and an Oriya film, which will be launched later this year.

Ek Hoti Waadi, the small budget Marathi film that marked Nimbus‘ entry into film production, was released in Pune on 8 February and will be released later this month in suburban Mumbai. The film is slated for release in the state interiors from April onwards. The film, which Khurana claims has received a good response in Pune, bagged six awards (picture, actor, actress, story, music and lyrics) at the recently held Alpha Gaurav Puraskar in Mumbai.

In late 1999 when the company declared its intention to go public, it had issued a propectus in which Nimbus chairman Harish Thawani said that the company had taken a policy decision that not more than five per cent of the company‘s investible funds at any time will have an exposure in the motion picture content industry.

The company had also planned on launching a community portal, a movie related vortal, entering the FM radio fray and launching two TV channels, one of them to be christened showbiz TV, apart from starting a motion picture division. The others are yet to take off, however.