Investing In India
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Investing In India

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Investing In India Presentation Transcript

  • 1.  
  • 2. Devashish Sarkar CEO Worldwide Media Ltd.
  • 3. Investing in India
    • Strong domestic consumption, ample liquidity
    • One of the best demographic profiles in the world
    • Underleveraged consumers, corporates
    • High business confidence
    • Forex reserves go to infrastructure, not to US Treasuries
  • 4. Zone of High Growth + Low P/E
  • 5. Investing in India
    • Earlier (1994)
    • Done during euphoria of delicensing and availability of GDR option
    • Coincided with major economic downturn
    • High interest rates capped consumption growth
    • Now (2005)
    • Done to gain global competitiveness and economies of scale
    • Coincides with strong domestic revival
    • Strong consumption, low interest rates and rising incomes
  • 6. Investing in India
    • Earlier (1994)
    • Expansion funded mostly by high cost debt
    • Now (2005)
    • Expansion funded mostly through internal accruals, low cost domestic, foreign debt and equity
  • 7. Investing in India
    • One of the best capital gains tax regimes in the world
    • Strong IPOs adding depth – (USD millions)
    • ONGC 2,174, TCS 1,074, NTPC 978, ICICI 761
  • 8. Worldwide Media Ltd. – a BBC Worldwide and Times Group Joint Venture
    • 31 consumer and B2B titles
    • Femina and Filmfare more than magazines…
    • Brands that provide gateways to Indian homes
  • 9.
    • Femina’s readers base
    • of 1.73 Million is
    • equivalent to the
    • combined reader base
    • of all other competition
    Our brands are leaders Readership
  • 10.
    • Filmfare reader base of 4.49 Mn is larger than the combined readership of the competition
    0 In Mn 4.49 2.36 1.70 1 2 3 4 5 6 Readership Our brands are leaders Filmfare Stardust Cineblitz
  • 11. Our brands are built through events… Annual Filmfare Awards & Femina Miss India
  • 12. Our brands are built through active participation in relevant communities Femina Bridal Show Femina Clothes Show Femina Young Designer Contest Femina Chrysalis Milan Fashion Week
  • 13. The Times Group: India’s largest, oldest, best diversified
    • Established 1838
    • Broadsheets, Magazines, Internet, Radio, Music, Multimedia, TV
    • Times of India is the world’s largest English daily (2,438,115 copies)
    • Economic Times is the world’s second largest financial daily (511,196 copies)
  • 14. Times London Daily News NY Washington Post The Hindu Daily Telegraph LA Times NY Times WSJ USA Today Times of India The Times of India: World’s Largest Circulating English Daily 688,000 907,095 1,136,433 2,070,498 2,199,052 2,438,115 802,000 751,871 907,997 922,000
  • 15. The Times Group: Leadership across Media
    • Femina is India’s largest English women’s magazine
    • Filmfare is India’s largest English film magazine
    • indiatimes.com is India’s largest portal (more than 1 billion page views per month)
    • timesofmoney.com is India’s largest financial portal
    • Radio Mirchi is the leader in Delhi and Mumbai
  • 16. The Times Group: Leadership across Media
    • Times Music has released over 1500 titles since 1997
    • Planet M music retail chain has 46 stores in 23 cities
    • Zoom TV channel - weekly viewership of 10 million.
    • Highest channel share (26%) in its category
    • Ahead of MTV, Discovery, Nat Geo
  • 17.
    • Reaches 2,468 markets
    • Circulation of 500,000 magazine copies
    • Circulation of 3.6 million Newspaper dailies
    • 20% of all newsprint consumption in India
    • Over 7000 staff
    • 850 ad space sales staff
    • 600 circulation sales staff
    The Times Group: Largest circulation reach
  • 18.
    • 2,900 exclusive dealers
    • 31,000 vendors
    • 11 publishing centers
    • 55 marketing offices
    • 45 circulation offices
    • International Media Representation for 120 publication groups
    The Times Group: largest infrastructure for advertising and circulation sales
  • 19. Print Media in India: healthy growth at 8% p.a.
    • Annual revenues estimated USD 1.3 billion
    • USD 1.1 billion comes from Ad revenues
    • Print share 50%
    • Ad intensity ratio 0.39% (against global 0.99%) indicates high potential
  • 20. The reach of English Print is valuable
    • Consuming class largely Urban, Socio-economic Group A
    • Estimated 40 Million, Household Income USD 6000
    • 57% College graduates
    • High % durables ownership
    • High penetration of English print
  • 21. English Print is the most efficient way to reach the consuming class
    • English print reaches
    • 43% readers of the
    • consuming class
    • English magazines
    • reach 29% readers of
    • the consuming class
  • 22. English 70% Indian languages 30% Dailies 91% Magazines 9% Dailies vs: Magazines Ad revenue shares Total Ad Spend USD 1.1 billion Times Group share 39% of English , 5% of Indian languages
  • 23. The India magazine opportunity is under- leveraged but poised for growth
    • SEC A growing 3 times faster (about 22% p.a) than overall GDP
    • English reach growing at 17% (incomes, aspirations, literacy)
    • Continuous entry of global advertisers
    • 80% ad revenues come from only 17 titles in only 4 categories
  • 24. The India magazine opportunity lies in these areas
    • Travel
    • Lifestyle
    • Investments
    • Health & Nutrition
    • Parenting
    • Learning
    • Self-improvement
    • Interiors
    • Music
    • Gourmet
    • Celebrities
    • Auto
    • Shopping and Retail
    • Science
    • Math
    • Computers
  • 25. The Indian magazine business delivers attractive margins
    • Premium ad sales pricing for quality audiences
    • Skilled staff, processing and design capabilities… at local prices
    • Paper costs comparable to global rates
    • English language, Information Technology advantage
    • A high margin business in India