Investing In India

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  • Investing In India

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

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