Gramophone plans to acquire Punjabi music co, to pay 10% final

	Financial Daily from THE HINDU group of publications Tuesday, July 11, 2000

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Gramophone plans to acquire Punjabi music co, to pay 10% final

Our Bureau

CALCUTTA, July 10

GRAMOPHONE Co of India Ltd, a RPG group outfit, has planned to acquire a Punjabi music company.

Mr. Pradipta K Mahapatra, President & CEO of Gramophone Co, told newspersons here on Monday that negotiations for the takeover were at an advanced stage. The targeted outfit has a strong domestic presence and its catalogue has potential for international audience.

Mr. Mahapatra said Gramophone was also scouting for an acquisition in the Telegu language music segment.

It has recently acquired Pyramid, which has a significant share of Tamil music business. Pyramid's catalogue is being promoted overseas through its UK-based subsidiary, Saregama Plc, and Mauritius-based subsidiary RPG Global Music Ltd.

Gramophone has decided to launch on-line digital music delivery system later this year. Its Internet initiative Saregama.com has turned out to be the world's largest selling music site, according to him. As an extension of its plan to enhance its global presence, it has also initiated moves to list its scrip at New York Stock Exchange / Nasdaq.

Following the implementation of the recommendations of Arthur Anderson Consulting, Gramophone's operational efficiency has improved and it is now free from debt.

It has formed eight `centres of excellence' within the corporate hierarchy under focus group leaders. During 2000-01, it has programmed for 10 Hindi and 20 Tamil film music releases.

Its board, on Monday, considered the audited accounts for 1999-2000, which showed an increase of 19 per cent in revenue to Rs. 146.09 crores (Rs. 123.08 crores) and 53 per cent jump in net profit to Rs. 6.01 crores (Rs. 3.93 crores). The board recommende d a final dividend of Rs. 1 per share of Rs. 10. With the interim of Rs. 2, total dividend for 1999-2000 would be Rs. 3, against Rs. 1.50 for 1998-99.

The board also took on record the first quarter results (April-June 2000). Turnover improved by 50 per cent to Rs. 40.39 (Rs 26.81 crores). PBT was Rs. 4.02 crores (Rs. 30 lakhs).