Media moghuls bring battle to India

By Sandeep Dikshit

NEW DELHI, MARCH 27. Mr. Kerry Packer's three-day visit which began today in Mumbai signifies the extension of the battle between two well known Australian media Moghuls in Indian territory. Mr. Packer follows the Star TV owner Mr. Rupert Murdoch who visited the country in the middle of this month to scout for opportunities in the same sectors of entertainment, Internet and broadcast media.

During his whirlwind visit, Mr. Murdoch had pushed for opening of the direct to home (DTH) broadcasting sector and discussed prospects of investing in the IT industry and widening the opportunities by making use of the Internet. These are the areas where Mr. Packer is hoping to make inroads in India.

While Mr. Murdoch already has a well established venture Star TV running in the country, Mr. Packer's priority is the software sector. Simultaneously, the man who had transformed one-day cricket by introducing the concepts of coloured clothing, floodlights and white balls, will also take on Mr. Murdoch by preparing his company for opening of DTH broadcasting in India and joining hands with the Sahara channel in India besides entering into tie ups with Pakistani and Sri Lankan companies to cover the entire Asian continent.

According to indications, Channel 9's JV with the predominantly north India based Sahara channel may side-step news for the moment and concentrate on international sports and events.

Last month, the Channel 9 owner, had dispatched his only son Mr. James Packer to invest over Rs. 1,000 crores in Himachal Futuristic Communications Limited whose shares have since been scorching the bourses.

The junior Packer had also signed MoUs with the same company in areas of software development and for promoting business-to- business (B2B) commerce. HFCL, which has a good backroom contingent, will be occupying Mr. Packer's attention for several other reasons. The company is reducing its over-dependence on the Government sector and is now planning to target the private sector by getting into the manufacturing of set-top boxes for DTH and equipment for ensuring easier access of Internet through cable.

These are areas which interest Mr. Packer's flagship Consolidated Pres Holdings (CPH) and the tie-up with an indigenous manufacturer reputed for keeping its costs low is expected to make the India foray more cost-effective.

Mr. Packer's interest in HFCL marks a turning point for the company after running into a rough patch and encountering infamy some years ago.

The company has reduced its dependence on Government orders and expects its turnover next year to treble to Rs. 1,500 crores with Government orders accounting for only a quarter of the business.

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Section  : Business
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