Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
"The number of non-cable homes and non-TV homes being so huge is in itself a big trigger for growth." - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Feb 12, 2004

    "The number of non-cable homes and non-TV homes being so huge is in itself a big trigger for growth."

    After passing his chartered accountancy, Mr. V. Devarajan started his career with Raymonds. After a varied exposure to different industries like textiles, steel and consumer goods, he joined Balaji Telefilms Ltd. as the CFO - his first foray in to the media industry. During his tenure, he has been instrumental in setting up systems and control mechanisms, which has resulted in improvement of the operational efficiency of the company.

    In an interview with Equitymaster, Mr. Devarajan shared his views on the issues and prospects of the media industry and how is Balaji Telefilms Ltd. placed in the same.

    EQTM: When one considers the cable TV viewership base in India, how have we grown over the last decade and how do you see this growing in the long term? Is the viewership base concentrated only in urban and semi-urban areas or are we seeing a much broader growth in this base? We sell only around 6 m TVs a year (and mostly replacement demand).

    Mr. Devarajan: The cable TV viewer ship has witnessed a phenomenal growth over the recent years and the same is expected to grow further. Although it may take some time to beat the terrestrial numbers, its definitely making inroads into the hitherto untapped areas. With the number of non-cable homes and non-TV homes being so huge in the country, I think that this in itself is a big trigger for growth in the coming years.

    EQTM: In this, how would you define the viewership base of Balaji Telefilms in particular?

    Mr. Devarajan: If one looks at the TRPs, it's evident that viewer ship is scattered across cross sections across the country.

    EQTM: The FICCI study has estimated the size of the entertainment industry at Rs 650 bn. But the industry is very fragmented in nature, be it broadcasters (including local channels) or content providers. In this respect, how do you see the industry growing over the long term? Is consolidation the name of the game in the future?

    Mr. Devarajan: In any business, the name of the game is 'survival of the fittest'. Having said that, there is enough space for quality content providers irrespective of their size. However, within the community of content providers, I don't see any possibility of consolidation happening. For one, the successful ones may not find any value addition as also the unsuccessful ones consolidating within themselves doesn't make sense.

    EQTM: The " style="color:blue" target="_blank">media and broadcasting industry, in the last couple of years, has suffered from reduction in adspend. Is the industry situation improving for the better? How has Balaji evolved over the last two years?

    Mr. Devarajan: The industry is definitely on the growth path. And so is Balaji. Balaji has been consistent in delivering quality programs over a period of time.

    EQTM: How would you rate the progress of Balaji Telefilms as a leading content provider over the last three years on various facets like de-risking of business model, etc?

    Mr. Devarajan: The strategy has been to cater to different markets, languages and channels and produce programs in different genres. And Balaji has been successful in doing this. It is producing Telugu and Kannada serials apart from Hindi. It is present in regional market through Gemini TV and Udaya TV apart from the main line channels. Latest addition has been Doordarshan - to spread the basket further. While some of the programs are family dramas there are others which are youth-centric and thrillers.

    EQTM: Your company is one of the leading content providers to broadcasters. What do you think are the key drivers and traits required to sustain the same?

    Mr. Devarajan: Ability to narrate and present a story consistently well, continuously.

    EQTM: Is it fair to say that the independent content provider model is a high risk one? Are you looking at any diversification over a period of time like film production, broadcasting etc?

    Mr. Devarajan: While broadcasting may be ruled out, film production can be looked at, at some point in future. Ideal way to de-risk is to cater to a varied audience, channels, markets, geographies etc.

    EQTM: You made a private placement recently and raised money. Could you throw some light on the reason for this and how do you plan to utilise the cash proceeds?

    Mr. Devarajan: The promoters made the private placement.

    EQTM: Your comments on Conditional Access System (CAS) and how does your company stand to benefit from the same?

    Mr. Devarajan: As we always maintain, 'Content is the king'. As long as one delivers quality content, CAS will not affect. In fact, it can increase one's bargaining power.

    EQTM: Could you please share with us the personalities and books that have influenced you the most?

    Mr. Devarajan: Amitabh Bachchan for his time management and multiple tasking abilities.

    EQTM: What takes up your time apart from work?

    Mr. Devarajan: Watching television for official and personal reasons, catching up with family and friends, writing 'shayaris' when in the right mood.



    Equitymaster requests your view! Post a comment on ""The number of non-cable homes and non-TV homes being so huge is in itself a big trigger for growth."". Click here!


    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 16, 2017 (Close)


    • Track your investment in BALAJI TELEFILMS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks



    Compare Company With Charts