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A look at Jagran Prakashan - Part I - Views on News from Equitymaster
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  • Dec 5, 2007

    A look at Jagran Prakashan - Part I

    Jagran Prakashan (JPL), publishes Dainik Jagran, which is the largest read Hindi daily in India. Incorporated in 1942, with first edition launched from Jhansi, Uttar Pradesh, Jagran Prakashan now has 31 editions and 259 sub editions. It has a circulation of 2.38 m copies and a readership of 21.2 m (IRS 2006 R2). In this article we zero in on the two biggest strengths of the company that sets it apart from the rest.

    Reader loyalty
    Dainik Jagran has been consecutively ranked as the number one daily in the past five years. Its readership has increased from 9.4 m in IRS '00 to 17.1m in IRS '07. Also, the company's readership grew by 120% from 9.6m in NRS '00 to 21.2m in NRS '06. The readership of Dainik Jagran grew by 9.8 m readers as against 8.1 m for the next four of the top five newspapers. This increase was more than three times the growth in readership of the top six English daily newspapers combined, which grew by 2.9 m readers. (Source: IRS 2000, Round 2 and IRS 2005, Round 2.). The leadership is due the continuous investment done by the company in printing capacity expansion and entry in new regions. In terms of reach, there are 501 m people living in Dainik Jagran's footprint, which is approximately 49% of the Indian population (source: Census 2001) and accounts for a large part of the Hindi-speaking base in India. There are 93 m households within its footprint showing its huge spread. Despite the high readership numbers, there still exists a large scope for growth. There are about 360 m untapped audience who currently do not subscribe to newspapers, out of which two-third is comprised of Hindi readers.

    Readership (persons in m)
    2006 Newspaper m 2005 Newspaper m
    1 Dainik Jagran 21.2 1 Dainik Jagran 21.2
    2 Dainik Bhaskar 21.0 2 Dainik Bhaskar 17.4
    3 Eenadu 13.8 3 Eenadu 11.4
    4 Lokmat 10.9 7 Lokmat 8.8
    5 Amar Ujala 10.8 5 Amar Ujala 10.5
    6 Hindustan 10.4 4 Hindustan 10.6
    7 Daily Thanthi 10.4 6 Daily Thanthi 9.4
    8 Dinakaran 9.6 39 Dinakaran 1.5
    9 Rajasthan Patrika 9.4 8 Rajasthan Patrika 8.7
    10 Malayala Manorama 8.4 10 Malayala Manorama 8
    11 Times of India 7.5 9 Times of India 8.1
    12 Mathrubhumi 7.4 13 Mathrubhumi 6.4
    source: NRS 2006

    Being a 60 years old brand, the company has launched 13 new editions of Dainik Jagran since the beginning of fiscal 2000. Also, the company has been quick to seize the opportunities in the print media and increased its presence from 2 states in 2000 to 11 states in 2007. The strategy of moving into newer territories has also helped. JPL to reach the numero-uno position among the reading population and attract advertiser attention. Currently 8 editions of the company are making losses.

    The Hindi newspaper market in 2006 was estimated at Rs 27.2bn of which Rs 14.3 bn is ad revenues while, Rs 12.8 bn comes from circulation. Of the total print market, JPL reaches the area of Rs10.3 bn in advertising and Rs 9.5 bn in circulation. Out of this, Jagran has 37% of ad market and 18% of circulation. Due to its strong presence, the company has been able to command higher ad rates.

    JPL currently holds the No 1 position in 11 editions, while in most of the remaining places; it holds the No 2 position. The biggest competitive advantage for JPL is its massive reach with 225 sub editions and localisation of content. While it is marginally behind Times of India in SEC A category, JPL is way ahead of its competitors in SEC B and C categories.

    • In SEC B1 and B2 - Dainik Jagran's readership is 3 m as compared with Dainik Bhaskar's readership of 2.4 m.
    • SEC C - It has a readership of 2.4 m as against Dainik Bhaskar's readership of 2.1 m.

    • Persons earning more than Rs. 5,000 per month - Dainik Jagran's readership is 5.9 m compared with the second ranked Times of India's (TOI) readership of 5.6 m.

    Though the company has managed to lead the sector, recently as per IRS R2, the gap from its competitors has narrowed down due to the Dainik Bhaskar's new editions that were launched in Punjab. The gap has fallen from 4.6 m readers in IRS R1 to 3.7 m readers in IRS R2.

    Uttar Pradesh and Uttaranchal are the main markets for Jagran Prakashan where it earns 65% to 70% of its revenues. Dainik Jagran is the number one player in Uttar Pradesh, which is the largest market for Hindi advertising. JPL also has a strong foothold in Bihar, Jharkhand and Punjab. However, in 20% to 25% of the Hindi belt consisting of Rajasthan and Madhya Pradesh the company has relatively lesser presence.

    In the next article, we shall profile the company's standing in different regions.



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