• Mehra's Rang De Basanti Goes to US Universities
• Patni Signs Deal With Disney Mobile
• NRI Bags LSE's Op Chair
• NZ Indian to be Governor-General
• Indian Master Fetch Fortunes at Christe's

• Bollywood Goes Public With IPOs
• India Wins Luther Terry Award For Tobacco Control
• Indian Corporate Raiders Feared Most
• Viacom, Via Tom
• Art India on the Rise in West

With India's stock markets booming, tinsel town denizens are joining the party in a bid to break from traditional sources of funding. Maverick filmmaker Ram Gopal Varma is the latest to join the bandwagon of old war-horses of filmdom and the Gen X of the entertainment industry who are digging for booty armed with a shovel called the Initial Public Offering (IPO). Varma, who has single-handedly set up Factory, a production house that churns out dozens of small-budget Hindi films, is taking his outfit public. Even as he readies for the release of 'Darna Zaroori Hai' on Friday, he has been trying to streamline systems at the Factory and prepare his organization for an IPO. If going public augurs well for Varma, Bollywood star Ajay Devgan and Kajol may also revive their plans of going public that they had shelved. The grapevine has it that even the three Khans - Aamir, Shah Rukh and Salman - are planning to go the IPO way. According to reports, as many as 30-35 Bollywood entities are hoping to raise cash from the markets. While institutional funding has let filmdom down, the stock markets have increasingly become a non-traditional source of finance for Hindi films. A study by Yes Bank claims non-traditional sources account for upwards of Rs.3 billion of finance. "It is a healthy amount considering that institutional lending for film production has failed to live up to expectations," says a trade observer. According to Yes Bank, the inflow of non-traditional finance peaked in 2005. "Black" and "Mangal Pandey-The Rising" were fully financed by non-traditional funds; still in the making "Krrish" and "Marigold" fall in the same category. Film financing sources are categorized into two groups-traditional and non-traditional. The former comprises producer's contribution, distribution pre-sales and private financiers. The latter is made of loans from banks and FIs; companies and production houses funded through IPO, or venture capital and/or institutional private equity; individuals funded through venture capital and/or private equity; music companies and TV broadcasters. Last year, even as IPO-funded films were seven, the number of non-traditionally funded movies rose to 44, reducing its share. IPO funding gained further impetus in 2005, with UTV having gone public and Adlabs funding four films. "It could either mean that a larger number of projects are being funded through the equity route or given the need for stringent track record and much paper work the producers are either unable or not very keen on seeking institutional loans," a report by Yes Bank says. Trading watchdog Securities and Exchange Board of India (SEBI) provided the ultimate impetus to the caravans lined up for the ongoing gold rush by unveiling, for the first time in Indian corporate history, several major sops to the entertainment and media sectors. Taking a cue from their filmi brethren, several television and music industry fence-sitters also joined the rush. A number of firms-from broadcasting, TV production and marketing houses on one side to music companies on the other-some of whom were adopting a wait-and-watch policy, have taken the plunge. Star, Sony Entertainment Television, Sahara, B4U, New Delhi Television (NDTV), Nimbus, UTV, Pritish Nandy Communications, Creative Eye, Venus, Tips - the list is long and increasing every week. Analysts say the markets may not lap up all Bollywood offerings. But they are optimistic of their overall prospects. "After all, some of the Bollywood stars are well established brand names. And if they do come up with an attractive, profit-making business mode, there is no reason why the investing public should not share their dreams," says an analyst with a brokerage firm.

Courtesy: Times of India, April 23, 2006

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Rakeysh Omprakash Mehra's Rang De Basanti grows bigger by the week, if not the day. Now the director has taken the film on a tour of US universities. "It's a 10-day tour and I'll be joined by AR Rahman," said Mehra who was to go to the university in Eastern Michigan to interact with the faculty, students and academicians, discussing and analysing the film. Ohio and probably Miami are also part of the tour. There's no doubt Rang De Basanti has gone way beyond borders. "I'll have to agree with that. One of the themes that they want to discuss during my US visit is how the film has connected with the youth all over the world. I must say I am humbled by what's happening to Rang De Basanti, though I am still very shy of acknowledging its impact," Mehra said. Judging beauty contests and signing autographs still make him very self-conscious. "I am here to make films, not behave like a star, or be treated like one." The introspective director is readying his next project. "It will most probably be Delhi-6, an autobiographical look at my childhood and young days at Delhi's Chandni Chowk. "I need to do something intimate and inward-drawn after Rang De Basanti before I go on to my other more epic projects Paanch Kaurav and Bhairavi.

Courtesy: Hindustan Times, April 19, 2006

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The enactment of tobacco laws in the country might have left many unhappy with lawsuits pending against it in courts, but it has brought appreciation for the Health Ministry from world over. Global anti-tobacco activists have conferred on India the prestigious Luther Terry Award for what they call ''exemplary leadership in global tobacco control''. The award given by American Cancer Society will be presented to the ministry in Washington in July this year at the World Conference on Tobacco and Health -a once-a-three-year conference of tobacco control activists from all over the globe. The Indian Health Ministry has been chosen for the award in the category of 'Government Agencies', over countries like Thailand, Singapore and Ireland. According to the letter sent by the American Cancer Society, India has been selected in recognition of its contributions to the development of the Framework Convention on Tobacco Control (FCTC)-world's first public health treaty facilitated by WHO-as well as the implementation of strong national policies for tobacco control, including the enactment of a comprehensive law. ''The Cigarettes and Other Tobacco Products Act of April 2003 in India incorporated many key provisions of the FCTC even before the FCTC was formally adopted by the World Health Assembly in May 2003.

Courtesy: Indian Express, April 12, 2006

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Patni Computer Systems Ltd, which provides IT services for telecom industry, on Friday said its wholly owned subsidiary Patni Computer Systems Inc has signed a multi-service contract with US-based Disney Mobile. As per the contract Patni would be responsible for development of consumer, retail and operational portals and end-to-end system testing across multiple vendors and technologies utilized by Disney Mobile. It would also offer the company's knowledge of wireless technology and processes, especially about MVNOs (Mobile Virtual Network Operators) to Disney Mobile, Patni informed the stock exchanges. "Disney Mobile's selection of Patni for their MVNO launch is further validation of our capability to deliver quality IT services in complex telecom environments under aggressive deadlines to a globally recognized brand such as Disney," Patni's VP Telecom and Digital Media Rohit Bedi said. Besides recently announcing its partnership with leading global HR firm Mercer, which would set up a global operations centre in India, Patni had last month signed a multi-services telecom contract with UK`s largest independent retailer of mobile communications, The Carphone Warehouse. Patni Computers Systems Ltd was up 2.75 per cent at Rs 461 at the BSE on Friday.

Courtesy: The Economic Times, April 07, 2006

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Some of the most-feared challengers to global corporate fiefdoms are growing in India , says an international study. A dozen rapidly developing economies (RDEs)-including India , China, Russia, Brazil, Hungary and Turkey-are home to about 100 companies that are tearing down old business bastions , says the study by Boston Consultancy Group and the Confederation of Indian Industry. And it hints that the 100, with 21 Indian and 44 Chinese firms, is only the vanguard. "The most feared attackers are from India,'' BCG chairman Arun Maira says. The RDE-100 grew at a rate of 24% per year from 2000 to 2004. Collectively, they grew 10 times quicker than the US GDP, 24 times than Japan's and 34 times than Germany's . The Indian 21 grew at a faster rate of 30%. They also earned an operating revenue of $15 billion, a margin of 25% of sales compared to the RDE-100 average of 20%. "An interesting fact we found is that of the 44 Chinese companies, only one was privately owned. But all except ONGC in the Indian 21 were privately owned,'' Maira says. Perhaps that is the reason why each one had a unique vision and strategy for capturing new markets . Some of them such as M&M and Tata Motors anchored themselves on home turf and reached out to new shores. With seven manufacturing bases across India and local sales of over 1.2 lakh utility vehicles and about 70,000 tractors a year, the $1.9-billion M&M entered China and the US, the world's largest tractor markets . Today it is the fourth-largest tractor maker globally. Adopting a different strategy, Bharat Forge developed its expertise in tooling and design into mastery during the 80s and 90s. A few acquisitions in key markets later, it emerged as the world's second largest forging firm. Yet others prospered by being on the cutting edge of technology and engineering. Wipro, for example , expanded rapidly by providing software coding support to companies to make a smooth millennium switch in Y2K. After getting its foot in the door, it progressed to creating much of its value by redesigning business processes, a task that needs immense innovative abilities. Says Maira, "While the world talks of high productivity levels in the West and countries like Japan, we have found that Indian and Chinese companies are the best users of capital.'' Indian companies are able to reduce capital costs by using cheap labour instead of sophisticated machinery . Maira cautions that these firms should not forget the basics that several global pioneers such as General Motors perilously did. "Indian firms must remember that there are three imperatives to continue the success story. They must rely on their ability to innovate at low cost. They should dip into the large pool of local talent . And most importantly, the corporation should learn to live as a member of the society and work with it,'' Maira says. He adds that India was much more responsibly competitive than China , but it could surely do better.

Courtesy: The Economic Times, April 07, 2006

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An Indian academic will chair Operational Research department at the prestigious London School of Economics (LSE). Gautam Appa, from Ahmedabad, had been serving as a Reader in the Department of Operational Research, the LSE announced on Tuesday. Sixty-two-year old Appa did his graduation in 1963 from Ahmedabad before moving to London to study at LSE. After gaining a BSc in Economics, an MSc in Operational Research and a PhD in Mathematical Programming from the school, he pursued his academic career and since 1988, worked full time at LSE. "LSE has more than 200 students from India each year, on undergraduate and graduate programmes, and is in contact with around 1,000 Indian alumni. Whenever I visit India, I meet young people keen to come to LSE. It is an honour for me to be able to represent Ahmedabad, Gujarat, in some way within the LSE," he said. Appa, who retains close links with his home city, has authored a number of articles on the political economy of Gujarat on the themes of environment and communalism. He is a founder member of the L J Trust which runs the Tibrewal College, also known as L J College of Commerce in Vasana and many other colleges in Ahmedabad.

Courtesy: www.financialexpress.com, April 06, 2006

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Viacom will turn up the volume in India, taking MTV to more platforms and segments. Also on the cards: a new bouquet of channels, says CEO Tom Freston .Tom Freston remembers watching Hare Rama Hare Krishna way back in the 1970s - Hindi movies are something one understands even if you don't speak the language, he says. Viacom wants to get into the Indian movie market, with plans to co-produce movies here, through its vehicle Paramount Motion Pictures, which Freston plans to take global. "India would be at the top of the list of markets where Paramount intends to explore co-production," he says. Freston wants India to fire on all cylinders for Viacom, which has three properties in India-MTV, VH1 and Nickelodeon. He puts India among eight key territories where the company will invest in future, right up with other markets like the UK, Germany, Italy, China and Japan. Channels For Growth "We are investing on a proportionately higher basis here, and we have already sunk in substantial sums. The investments will take programming to new levels," says Viacom's Tom Freston. It also plans to launch more channels in India - which is way behind the US, where Viacom operates 26 networks, and the UK, which has 17. Jain has a blueprint for MTV India's key directions in the future. It will move from being a TV channel to being a branded content provider. First, though, the revenue model needs to be strengthened. While MTV as a brand has taken off and made profits in India, the Indian company is currently in the red due to its being in the investment mode, ramping up the newer channels Nickelodeon and VH1. "We want to be highly focused on building brand equity for MTV and other channels, and then pulling revenue streams out of that. We have a lot of latent potential in Brand MTV, and we will realise the value," says Jain, who says that MTV India's growth at the close of the first quarter was between 15 to 20%. Viacom, which merged with broadcaster CBS in a high-profile deal in 2000, was demerged this January into a separate company.

Courtesy: The Economic Times, April 05, 2006

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An ethnic Indian judge will be New Zealand's next governor-general, the first person of Asian descent appointed to the role, Prime Minister Helen Clark said on Monday. Justice Anand Satyanand, born and raised in New Zealand by Indian and Fiji Indian parents, in August will replace Dame Silvia Cartwright as the representative of Queen Elizabeth II. Ms Clark said Queen Elizabeth had approved the appointment of Judge Satyanand, a lawyer, judge and former ombudsman. The former judge, who has close ties to Asia and the Pacific, takes up the post in August, she said. "Judge Satyanand will bring many personal strengths to the role of governor-general, including a broad knowledge of the workings of government and law, as well as a deep appreciation of the different groups and communities which make up contemporary New Zealand," she added. Until the early 1970s the post of governor-general was the preserve of members of the British nobility, with the first indigenous Maori New Zealander, Sir Paul Reeves, appointed in the 1980s.Judge Satyanand said he decided to take the post as a matter of duty, the opportunity to play a different role in government. "I am an admirer of our country's present constitutional arrangements and the mechanisms which enable a straight forward change of government and our connection with our historical past," he said.

Courtesy: The Asian Age, April 04, 2006

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The hotter, the better. Prices of Indian paintings are on the way up. Recently, Christie's completed a record sale of Indian art works. In a stand-alone auction of Indian modern and contemporary works in New York, the auctioneer raked in $15.6m in sales, as against a pre-sale estimate of $7-9m. The average price for every piece on offer jumped to about $100,000, more than double the pre-sale estimate of $48,000. VS Gaitonde struck the tallest tag of the 166 lots. A 1975 untitled work of him attracted a final bid of close to $1.5m, as against the pre-sale estimate of $600,000-800,000. This painting had been sourced from a private Swiss collection. Occupying the second slot as far as prices go was FN Souza's untitled work of a seated nude which has been lapped up for $800,000. The nude was estimated to fetch $300,000-Close on Souza's heels was SH Raza's 'Tarangh' which attracted a bid of $744,000. Tyeb Mehta's 'Blue Torso' received $632,000 as against the pre-sale estimate of $500,000-700,000. A Husain untitled raked in $553,000. The 1960s Husain was put under the hammer with an estimate of $150,000-200,000. Interestingly, media which rarely figured at the auctions earlier are also finding very tidy prices. While, a Ravinder Reddy sculpted head has been picked up by a bidder for $168,000, a Subodh Gupta installation has witnessed a price of $144,000.

Courtesy: Economic Times, April 03, 2006

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Christie's can take a bow for a masterstroke once again. After closing the contemporary Indian art auction in September last year at $8.6 million, Thursday's auction at New York's Rockfeller Plaza saw its value double at $16 million. This is nearly three million more than Sotheby's total sale of $13.6 million the previous day, where S H Raza's 'Tapovan', a 1972 work, got sold for a record - at least for the artist - $1.4 million. Of the 168 lots that went under the hammer at Christie's, late Vasudeo S Gaitonde's 1975 abstract work, which a Swiss collector bought from Mumbai's Pundole Gallery nearly three decades ago, became the most expensive painting to be sold. At $1.5 million (Rs 6.5 crore), Gaitonde, together with Raza, joins other Indian masters who have entered the Rs 6 crore club - Tyeb Mehta, Francis Newton Souza and Amrita-Sher-Gil. Francis Newton Souza's painting of a seated nude, done in 1962, leaped closer to the million threshold at $800,000, while Syed Haider Raza's 'Tarangh,' a whirling blue composition done in 1975, fetched $744,000. Tyeb Mehta's 'Blue Torso,' which marks the artist's ''transitional'' phase - from his gray, sombre images of rickshaw pullers to bold and bright two-dimensional works, when line began to take control over contour in emphasis. Like most other Christie's auction, the Progressives, so called because they defied conventions of traditional ways of painting as taught by the 40s art colleges, dominated and about 90 per cent of the works belonged to this period. But in recent times, while Maqbool Fida Husain has been forced to share the limelight with his contemporaries, he continues to be major force in garnering dollar points for auctioneers. While two of Husain's works went unsold this time, at least 13 of his works pushed the total sales value of the auction by an estimated $2.7 million. While the painter faces charges for obscenity for painting the nude Bharat Mata, an offshore client paid $576,000 to acquire his Sita Hanuman. Clearly, Souza is also on the crest of the high price wave. Like Husain's, 15 works were up for bidding. Apart from three rejects, 12 of his works toted $ 3.6 million. Both Souza and Husain has propped up sales by 39 per cent. For variety and to test taste and sensibility, Christie's have also fielded artists like Ravinder Reddy, Subodh Gupta and Rameshwar Broota.

Courtesy: Hindustan Times, April 01, 2006

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