MUMBAI: The Times of India Group company Entertainment Network (India) Ltd (ENIL), will be floating a new subsidiary company.
ENIL, which is listed on the bourses, currently manages the group’s FM radio broadcasting station Radio Mirchi, out-of-home media business – Times OOH Media and experiential marketing business 360Â°.
While ENIL directly controls Radio Mirchi, its wholly owned subsidiary Times Innovative Media Limited (TIML) manages Times OOH Media and 360Â°.
Now 360Â° will be housed under an entirely new company, whereas Times OOH Media will continue to a part of TIML. Confirming the development to Businessofcinema.com ENIL CEO Prashant Pandey says, “OOH Media and 360Â° will be housed under separate companies now because their business requirements are different. Our company 360Â° will now be housed under a new company called Alternate Brand Solutions Ltd. So now these companies will achieve their own growth objectives independently.”
Pandey insists that ENIL will continue to hold 100 per cent stake in both TIML and ABSL, but it is rumored that ENIL will gradually sell stakes of TIML OOH Media. Earlier this year, OOH Media was granted the advertising rights for Mumbai’s Chhatrapati Shivaji International Airport and Delhi’s Indira Gandhi International Airport, for the next three years.
Sources inform that this activity would require heavy investments amounting to approximately Rs 2.50 billion (Rs 250 crores). In order to raise money for this, 360Â° is being separated from TIML and housed under a new subsidiary company, so that money can be raised exclusively for OOH Media, which is a flourishing business.
“Currently we will have a 100 per cent stake in the subsidiaries. If they need to pursue financing options, it will be done independently,” says Pandey.
Meanwhile The ENIL stock performed well on the Bombay Stock exchange. The stock ended at Rs 465.60 up 6.95 per cent from the previous days close.