A few decades back, nobody would have imagined that the Rs 5 billion Jagran Prakashan, headqaureted in the north Indian industrial town of Kanpur, would straddle a sizeable part of the Indian media industry, which is picking up pace in terms of turnover, employment and influence. Though media scrips still account for a miniscule portion of the overall stock market, with recent moves towards liberalization being envisaged by the government, it is expected that many more companies would hit the IPO trail as also attract foreign investment.
In such a scenario, the Jagran group has shown enterprise having expanded not only in the print business, but also foraying into the electronic medium via a news channel, Channel 7, earlier 2005. Realising that a print-to-TV model would not only enhance the company’s value, but also help it to take on competition more effectively, the Jagran group embarked upon a thought-out plan, much to the dismay of some critics who had thought that ambitions of becoming a broadcaster was just a pipe dream.
In this interview with Indiantelevision.com at the Noida (on the outskirts of Delhi) studio of Channel 7, Jagran TV Pvt Ltd’s director Siddhartha Gupta holds forth on the television foray and future plans.
Excerpts:
Wouldn’t it have been better if the Jagran group had stuck to its core area of print instead of foraying into the tricky business of TV broadcasting? |
|||||||||||
What I meant was that at a time when the group is expanding its print business in a big way, would it have been more prudent not to spread resources thin? Especially when the TV space is cluttered? As far as resources are concerned, the Jagran group has been in the media business long enough to understand that resources should not be spread thin. That’s why, the TV venture has been separated from the print and treated as an independent wing of the group. This way we de-risk the business up to an extent. |
|||||||||||
Was one of the reasons for the TV foray done keeping in mind that the print infrastructure and manpower could be put to good use? |
|||||||||||
How much is the initial investment that has been made in the TV venture? |
|||||||||||
A few months down the take off line, do you feel additional funds are needed as a sizeable chunk of your budgeted investment must be directed towards distribution, marketing and promotional activities?
|