Bihar the new battleground for media industry

Here is yet another evidence of Bihar,till five years ago part of the languishing BIMARU club,making steady progress on the economic growth path.

Here is yet another evidence of Bihar,till five years ago part of the languishing BIMARU club,making steady progress on the economic growth path. The state is all set to become a media battleground with leading media companies of the country lining up an investment of Rs 500-600 crore over the next six months,in an effort to firm up their presence in the fast improving market of Bihar.

Hindustan Media Ventures Ltd (HMVL),a subsidiary of HT Media Ltd that publishes English daily Hindustan Times,will soon hit the market to raise around Rs 300 crore through an initial public offering (IPO) and according to the company,a significant amount of the capital raised will be invested in strengthening and expanding the presence of its flagship Hindi daily Hindustan in the state and adjoining Jharkhand. Hindustan is already the market leader in Bihar,but it may have to work harder to defend its leadership position in the wake of the strong competition building in the market.

Dainik Bhaskar,published by DB Corp,which recently raised around the same amount of capital from an IPO,is all set to enter the state where its arch rival and the countrys largest read newspaper,Dainik Jagran,is already making fast inroads. Jagran is published by Jagran Prakashan Ltd (JPL). These companies,along with Prabhat Khabar,another leading Hindi daily,have earmarked investments of Rs 100-200 crore to capture market share.

Bihar is a new opportunity market. With the improving economic and consumption scenario and an already impressive literacy rate,media companies are hoping to be part of the potential success story of the state, says Sanjay Gupta,CEO,JPL.

With a population of around 90 million,Bihar is the second most populous state in the country after UP. Of these 90 million,35 million are literate,but only 17 per cent of them read publications of any kind,says A S Raghunath,a Delhi-based independent media consultant. The market is hugely under-penetrated and media companies feel now is the time to reach out to the fence-sitters.

Bihar is also one of the most robust subscription markets in the country. Being politically conscious,readers in Bihar happily spend Rs 4-5 to buy a newspaper, adds Raghunath. In contrast,readers in the National Capital Region spend between Rs 2 and Rs 3 on their newspaper that not only has more number of pages but is also superiorly produced.

With competition building up,the incumbents may be forced to reduce their cover prices,yet they are hopeful of a profitable business because of the consistently improving business environment. The most visible changes in Bihar are on the infrastructure and law and order fronts. The states impressive 11.5 per cent GDP growth is already a known story, says Amit Chopra,CEO,HMVL. Average consumers in the state today are far more well off than they were five years ago,he adds.

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This visible transformation is attracting national advertisers alongside inspiring local marketers. We see a lot of marketers,such as telecom,automobile,retail companies and educational institutes entering the state. The state government is pursuing investments in various big sectors. All this,we believe,will fuel the ongoing growth process, says Benoy Roychowdhury,executive director,HMVL.

Industry estimates peg the total advertising market in Bihar at Rs 200-300 crore and they expect it to build decently over the next few year.

Like print,there are noticeable movements on the television front as well. Noted film producer and director Prakash Jha,for instance,launched a news-cum-entertainment channel,Maurya TV,in February. Arguing that it was a well thought out business decision to launch the channel,Jha says: Bihar didnt have a local TV channel of its own. It was a clear gap in the market which we have tried to fill. It is early days,but so far the business has shaped up as per our expectations,both in terms of subscriptions as well as advertising.