In order to help its cable distribution arm during the digitisation process, the Hinduja Group has announced it will be investing USD 48 million in IndusInd Media and Communications Ltd (IMCL). IMCL operates INCableNet and INDigital in India.
Grant Investrade Ltd (GIL), a wholly owned subsidiary of Hinduja Ventures Ltd (HVL) is the one that is investing the money in IMCL. Ashok Mansukhani, director, IMCL said, “The promoter group has decided to help IndusInd Media and Communications to help consolidate its position in Phase I and Phase II of digitization and to further grow in Phase III and IV both organically and inorganically in interesting geographies because in Phase III and IV the role of the MSOs is limited to 20-25%. Therefore, about 5,000 independent cable operators would need support in joint ventures or to be bought out.”
Mansukhani has also noted that foreign direct investment (FDI) route for the cable distribution sector has to be clarified by the government further as confusion still looms. He said, “There is uncertainty about foreign investment in the sector as the ministry of information and broadcasting and Trai (Telecom Regulatory Authority of India) have recommended 100% FDI. However, the home ministry has some reservations over the same.” The digitisation process in India is likely to be completed by December of 2014.
No comments:
Post a Comment