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Journalism of Courage
Sooraj Barjatya obviously knows how to hit the news stands. If it’s not with his superhit Hindi films ,then it’s because of his actions. The tycoon is now on the verge of going public. Within the next two years, he says, but it could be sooner. He needs the cash as he intends to enter the field of television software. Since his Rajshri Productions has already produced around 49 Hindi feature films till date, the tycoon feels he has enough experience and believes it’s the most logical step towards the future of the company . His Rajshri Group, houses companies such as Rajshri Productions, Rajshri Pictures and Rajshri International. Barjatya is now appointing consultants to design his listing plans on the domestic stock exchanges for his IPO . His group’s official turnover is apparently around Rs 250 crore. Before this, the tycoon had been busy with his tie-up with Subhash Chandra, where the two had formed Zee-Rajshri Film Distribution — an exclusive tie-up between the two companies, which now distributes and produces Hindi and other language films through offices all over India. Barjatya will use his current network of 21 offices for an easy and transparent flow of box-office information to his producers, which is an advantage for him, as others follow a fragmented distribution network. Barjatya’s expecting his film distribution business to bring in revenues to the tune of Rs 50 crore. You’ll have to wait and watch to find out whether all this points to a potentially listable company in the Bollywood tradition.
Remixing the retail cocktail
KISHORE Biyani is busy making heads turn. He has decided to launch a new lifestyle brand called ‘Central’. These stores with a size of over 1 lakh sq feet would, when opened, dwarf the tycoon’s Pantaloon stores which are a size of 20,000 sq feet, only. These new stores will be introduced in Bangalore and Hyderabad.
The idea for a new lifestyle brand came from his discovery that clothing in India was already a $12 billion sector and so he wanted to be a bigger part of it. The tycoon has set an ambitious turnover target of 1,000 crore by 2005, and he hopes that from his lifestyle retailing alone 450 crore will come, while his Food Bazaar, Big Bazaar etc, will bring in the rest. Biyani has also been busy on other things like getting his team together. He recently got them to meet all their vendors. A hundred and twenty of them from Pantaloon and a hundred and fifty from his chain of hypermarkets, Big Bazaar. The aim behind this innovative meeting was to reorganise his SCM (Supply Chain Management). After many discussions on cost cutting and energy saving, certain decisions were made, like data on the sale of products should be exchanged with the vendors on a daily basis; there should be an improvement in technology and a joint capacity planning apart from others. The most important decision that was taken, was that of a reduction in the number of vendors in Pantaloon as well as Big Bazaar with the former losing about 50 of its vendors. While all this seems to be heading towards achieving his turnover target, the tycoon is trying his hardest to stand up to the competition from B.S. Nagesh’s Shoppers Stop, who himself already follows a policy of working in close contact with his vendors. Wonder who’ll get to win the public over faster. Biyani has already lined up investment products, white goods and appliances, in his backyard for his next move. Retail has a hot year ahead.
Dilip Cherian runs public relations firm Perfect Relations. Mail to dilipcherian@now-india.net.in
