In a clear indication of its plans to list on the stock exchanges, the Bennett Coleman group (BCCL), arguably the largest media conglomerate in the country has started doling out Employee Stock Options (Esops) to the top rung officials of the company. Employees of the rank of senior managers ( equivalent to senior editors among journalists) and above have already received their letters a few weeks back, stating their entitlement and eligibility for the number of shares in the company. Although handing out ESOPs strengthens the case for the company?s listing in future (as the ESOPs can only be encashed by the shareholder employees, once the company is listed on an exchange), the management is not very keen on listing in the immediate future, according to sources close to the developments. On being queried about the decision to list, Ravi Dhariwal, CEO, publishing, BCCL said ?It will be premature to comment on the issue ?.
The group joins other media houses like NDTV group and Global Broadcasting Network which have also offered Esops to their employees. But both these groups are publicly listed.
While the media group does not disclose its financial performance publicly as an unlisted company, their topline has crossed $ 1billion (Rs 4,400 crore at the current exchange rate) in the financial year 2008, according to the same sources. The media group had closed the fiscal 07 with sales of over Rs 3,300 crore, posting a net profit of around Rs 600 crore, according to analysts tracking the media sector.
Just as in the IT and the banking sector, the group has employed the strategy of giving out Esops as an employee retention tool, at a time when the group has plans to expand further, said an analyst. However Dhariwal said the Esops issue is confidential and he wouldn?t like to comment on whether this is aimed at increasing employee retention at the senior level.
Besides the English daily, ?Times of India?, BCCL has diversified into TV channel (Zoom, Times Now), FM radio (Radio Mirchi and now Absolute Radio in UK, earlier known as Virgin Radio), internet (Times internet ) and portals like timesjobs, magicbricks and simplymarry. The media sector is witness to tremendous expansion plans for the past few years. There are 80 news channels on the air with around 110 applications awaiting clearance. Among newspapers too, there are plans to launch two more financial dailies. On the cards is the launch of a business television channel. The group has provided special training to its print journalists to prepare them for reporting in the proposed TV channel, a move largely meant to use readily available sectoral expertise of the journalists, according to a source. It might be recalled that reportedly the group has stakes in 175 varied ventures including PTI and UNI.
(With inputs from Alokananda Chakrabarty)