The board of ZEE Entertainment Enterprises (ZEE) has introduced a structured Monthly Management Mentorship (3M) Programme aimed at guiding and enabling the management team to achieve key performance metrics, including the targeted 20% EBITDA margin set by the MD and CEO. The initiative, led by ZEE chairman R. Gopalan, demonstrates the board’s commitment to delivering higher value to stakeholders. Gopalan emphasised the detailed approach taken by the board to protect the interests of all company stakeholders during recent interactions with the press and investors. The establishment of the 3M Programme represents a decisive move in this direction.
To oversee the implementation of the 3M Programme, the board has established a special committee tasked with reviewing the management’s business performance and offering necessary guidance. The committee includes ZEE Chairman R. Gopalan and Uttam Prakash Agarwal, chairman of the Audit Committee.
The special committee has conducted initial review sessions with the management to assess business vertical plans, refine revenue generation strategies, and optimise resource allocation to enhance company-wide efficiencies.
“After completing a detailed set of 33 meetings with various business verticals, corporate functions and leaders of the management team; our confidence and belief in the potential of the Company to deliver the targeted results, has certainly strengthened. Under the able leadership of Mr. Punit Goenka as the MD & CEO of the Company, the businesses are well-aligned and focused towards the set goals for the future. Leveraging the external lens and an outside-in perspective, the Committee has provided its independent, neutral, and fresh views to the business leaders enabling them to further improve their efficiency and performance. The Board has also advised the MD & CEO to further simplify the management structure and optimize the utilization of the human capital,” R. Gopalan, chairman, ZEE, said.
The 3M Programme Special Committee has identified several business verticals for critical assessment. These include Margo Networks (Sugarbox), Teleplay & Zindagi, Hipi, Weyyak, and the English Cluster of linear TV business. The committee has advised that these verticals must significantly reduce losses and improve performance.
The 3M Program Special Committee has also invested its time in conducting a detailed analysis of the Technology and Innovation Centre (TIC), which had incurred an expenditure of approximately Rs 600 crore in the last year. The committee has noted that the TIC has developed a substantial level of technology and tools; however, it has highlighted the immediate need to focus on Return on Investment (RoI). The Special Committee appreciated the efforts sown in by the TIC in the realm of gaming and product development; but is also of the view, that many of the development projects have reached its maturity levels. After reviewing the TIC’s approach to gradually emerge as an independent technology company; the committee has advised that the management should stay focused on its core expertise, ethos and DNA such as content. Hence, it has advised the management to utilise the services of TIC to enhance its content development and distribution process. It has also advised that the management should leverage the TIC’s Artificial Intelligence (AI) and Machine Learning (ML) tools to gain a deeper insight into the consumer profiles. With this view, the committee has advised that the management should reduce the expenditure at the TIC by 50%, for the FY 24-25; and utilise its services to enhance the company’s content development, distribution, and monetisation approach.
The 3M Programme Special Committee has reviewed the music business of the company and advised its leadership team to enhance monetisation avenues and increase the vertical’s contribution to the company’s bottom line. It has also recommended that the music business focus on optimising costs while maintaining its leadership position in the market.
The board is focused on ensuring high standards of corporate governance and has taken several steps to bring in additional measures to protect the intrinsic value of the company. To safeguard the interests of stakeholders, the board has constituted an ‘Independent Investigation Committee’ to fact-check, review, and examine all allegations raised by regulatory agencies against the company, its promoters, and key management personnel through a thorough investigation, and make recommendations to the board for necessary actions.
The recent appointment of three independent directors, following shareholder approval on 15th March 2024, underscores the shareholders’ confidence in the board of the company. Going forward, the board remains resolute in its commitment to provide guidance and advice to the management towards achieving the company’s set objectives.