Entertainment Network (India) Ltd (ENIL), which runs private FM radio brand popularly known as Radio Mirchi has inked deal with Abu Dhabi Media Company, expanding its presence in UAE. In a tete-a-tete with Poonam Ahuja, ENIL ED and CEO Prashant Panday opens up on the new venture and Mirchi's overall profits in the year 2011.
Excerpts:-
Throw light on Entertainment Network India Limited (ENIL) strategic agreement with Abu Dhabi Media Company?
ENIL has entered into a partnership with a very strong Abu Dhabi based group called Abu Dhabi Media Company (ADMC). We are launching the brand Radio Mirchi all over UAE as part of our partnership with them. It will be our effort to make the venture into UAE's number 1 radio station targeting South Asians. Our partners are a very large and respectable company managed by professionals. As partners, our combined effort will be towards making the venture successful.
What is the idea behind launching Radio Mirchi in UAE?
There is a huge demand for brand Mirchi in the UAE. A large part of the UAE's population is from India who have obviously experience Mirchi first hand. They want the same brand experience in the UAE but they are unable to get it at this point in time. There is also a very large diaspora from Pakistan, Sri Lanka and Bangladesh who like Indian music and have heard of brand Mirchi. We have met many people from Pakistan over the years and many of them have expressed a keen desire to listen to Mirchi. Given the brand's salience, both partners – ADMC and ENIL – thought it appropriate to launch Mirchi in the UAE.
How was the year 2011 for ENIL in terms of profits, mergers, launches etc?
Since the results of the Oct-December quarter are not announced yet, I cannot share how 2011 has been. But the period Jan-Sept 2011 saw Mirchi revenues increase by 11% - modest growth numbers but creditable, given the slow-down that has been since April this year. For the year ended March 2011 however, Mirchi reported a 21% increase in revenues.
Give us an overview on the Indian Radio Industry for the year 2010-2011?
As per our estimate, in FY11 (year ending March 2011), the radio industry was about Rs 12.5 billion (gross). Out of this, we believe that AIR may have been around Rs 2.75 billion or so, the private FM industry was thus about Rs 9.75 billion (gross) and Mirchi was Rs 2.8 billion out of this – a share of 34-35%.
Mirchi grew about 21% during FY11, and we believe that this was the same level as the overall radio industry. This number is also higher than the growth recorded by other segments of media – TV and print.
What are Radio Mirchi's plans for the year ahead?
Mirchi is awaiting Phase III auctions. We are all ready for it. We are also hoping that the ministry will reduce the spacing between two channes from 800 Khz to 400 Khz – this will help increase the number of channels from the present 9 to 18 immediately. The media markets in India are growing very rapidly and it is only logical that the number of radio stations also increase at the same pace.
Do you agree that South India would be a major market for Phase III of radio licensing and it will also bring in differentiated programming?
South India has been a very strong radio market till date. Traditionally, radio has been an important part of media consumption amongst the people of the South. And yes, the number of new stations on offer in Phase III is also relatively higher in the South. For us, the South is an extremely important region and we will do all it takes to increase our strength there….