HTMT to buy out its movie channel subsidiary

By Pradeep Rane | 23 Sep 2002

Mumbai: As the first step towards consolidating the businesses of its media content companies, Hinduja TMT (HTMT), is acquiring 100-per cent equity control over its movie channel subsidiary Cable Video India Ltd (CVIL) by buying out the 49-per cent stake of private shareholders.

HTMT and InNetwork Entertainment Ltd (InNetwork), HTMTs media-holding subsidiary, jointly holds 51-per cent stake in CVIL. Asia Vision Entertainment Pvt Ltd (AVEPL) and its associates presently hold the balance 49 per cent. In the proposed move, InNetwork will acquire the 49-per cent equity from AVEPL and its associates. HTMT and its subsidiary InNetwork will thus own CVILs entire equity.

CVIL owns and operates CVO, Indias No 1 Hindi movie cable channel. CVO, which was launched in 1996, has a library of over 1,600 Hindi films and is today one of the most widely viewed cable channels in India with a coverage of over 6 million households in 104 centres across the country. CVO has been constantly scoring highest television rating points with ratings on Sunday being ahead of all other music and movie channels across all-time bands.

Hinduja TMT has increased operations on behalf of their US telecom client by an additional 100 CSRs (customer service representatives). The client, highly satisfied with the performance of Hinduja TMT, has conveyed that it will be ramping up capacity. HTMT has already commenced operations for the 100 CSRs and is the process of training 130 more CSRs.

Recently, Hinduja TMT initiated services with Nortel 81C Switch, which has a capacity to handle 720 seats. It also employs server-based technology where it has a capacity to handle 200 seats. The company thus has the capacity to provide over 900 seats in its call centres on both server and switch-based technology.

The company has successfully implemented connectivity from Bangalore to the US via a Trans-Pacific route. It is perhaps the only call centre in India to offer redundant, diverse connectivity to its customers via two independent fibre routes, one Trans-Atlantic via Europe and the other Trans-Pacific via Far East Asia.

CVIL proposes to start an interactive music channel and digitise its content in order to deliver value-added services like pay-per-view and video-on-demand under the Conditional Access System regime, which is in the process of being legislated by the Indian government.