ENTREPRENEUR MANAGEMENT

A Project Report Submitted in Partial Fulfillment of PGDM Course

Success Story of an Entrepreneur

Ekta Kapoor Director Of Balaji Telefilms

LAL BAHADUR SHASHTRI INSTITUTE OF MANAGEMENT & TECHNOLOGY, BAREILLY (U.P)

Submitted By: Neeraj Barwal Roll No.214059 PGDM (2009-2011)

Submitted To: Ast.Prof.Abhinav Nath

COMPANY PROFILE
Balaji remains India's most preferred content provider for the television industry. It is India's only production house to have produced over 100 shows till date, across five languages (Hindi, Tamil, Telugu, Kannada and Malayalam) over the last 15 years. T he Company ushered in the cable and satellite boom in India. The performance of the Hindi television channels and the dominance of the Hindi General Entertainment Channel (GEC) were catalyzed by Balaji's differentiated content. The result: the shows grabbed eyeballs with skyrocketing TRPs. The Company developed new primetime hours for family viewing, enhancing the television viewing hours of the Indian audience. 'Kyunki, Saas Bhi Kabhi Bahu Thi' & "Kahaani Ghar Ghar Ki" is the only Hindi show in the history of Indian television to have crossed more than 1,500 episodes. Besides, Balaji possesses 23 modern sets and 37 editing suites in India, an unrivalled achievement in India. The move to cater to young adults seems to have somewhat eased the pain the production house went through in the last two years. From a quagmire with Star Plus which dropped Balajis most popular show on air, Kyunki Saas bhi Kabhi Bahu Thi, to flat programming hours and shows with high production costs but low number of viewers, the production house had a tough time. Reflecting the bad times Balajis net profit dipped from Rs 87.38 crore in 2007-08 to Rs 26.32 crore the following year, and further to Rs 15.19 crore last financial year. The production house has carved out a separate entity, ALT Entertainment, to make films that cater to younger audiences. The production house aims for a marked distinction in the brand image of Balaji Telefilms and ALT Entertainment. While Balaji Telefilms will cater to family audiences with its films, TV content and new-media offerings, ALT Entertainment will target young adults.

ENTREPRENEUR PROFILE

Ekta Kapoor or the K lady is the king-pin of the Indian Television Industry. Born on 7th June 1975, she has a typical look: soft tussled brown hair with a large red tika on her forehead. She heads Balaji Telefilms, a Production House based in Mumbai. Ektas father is none other than Jeetendra, the superstar, and her brother is Tusshar Kapoor, current Bollywood actor. Achievement: Creative Director of Balaji Telefilms; Awarded with Ernst & Young (E&Y) Startup Entrepreneur Of The Year award in 2001. Ekta Kapoor can be aptly called as the reigning queen of Indian television industry. The serials produced by her company Balaji Telefilms are a great hit with the masses and are dominating all the major T.V. channels in India. Ekta Kapoor did her schooling from Bombay Scottish School and later on joined Mithibai College. She was not interested in academics and on the advice of her father ventured into TV-serial production at the age of 19. And soon she changed the face of Indian television industry and completely dominated it. Today, Ekta Kapoor is the creative director of Balaji Telefilms. Her company has produced more than 25 serials and each one is being shown, on an average, four times a week on different television channels. Ekta Kapoor's serials have captured the imagination of masses. She broken all previous records of TV serial production and popularity in India. Her most famous television venture has been "Kyunki Saas Bhi Kabhi Bahu Thi" which began in 2000 and is still leading the TRP ratings in India. Her other famous serials include "Kahaani Ghar Ghar Ki", "Kahiin To Hoga", "Kavyanjali", "Kyaa Hoga Nimmo Kaa", "Kasamh Se", "Kahin Kisii Roz", "Kasautii Zindagi Kay", "Kkusum", "Kutumb", "Kalash", and "Kundali". For her entrepreneurial skills and achievements Ekta Kapoor was awarded with Ernst & Young (E&Y) Startup Entrepreneur Of The Year award in 2001.

TELECASTED PROGRAMME
In Television as a Producer: Ektas first soap was KyunkiSaas Bhi Kabhi Bahu Thi. It started in 1999, and was aired on Star Plus till November 2008, making it not only one of the longest running serials in the history of Indian Television, but also one of the most loved. The central character, Tulsi became one of the most recognized faces on the TV screen.

Then came Kutumb in 2000 on Sony TV, and lasted a year. It was rather popular initially, but the ratings dwindled towards the closure of the soap. The same year Kahaani Ghar Ghar Kii hit the screen. Ekta specializes in family drama, and this was no different. The audience loved it as much as her other soaps.

In 2001 came another superhit series Kasautii Zindagii Kay. It was aired on Star Plus as well.

Kkusum (2001), told the story of a simple yet strong girl. Needless to say the audience fell in love with the central character, comparing their own daughters and daughter-in-laws to her!

Her other serials that have done well are: Kavyanjali (2005), Kasamh Se (2006). Writing for TV:

Ekta has conceptualized some of her serials as well. Some of them are: Kasamh Se (2006)

Kavyanjali (2005)

Kesar (2004)

Kahin Kissii Roz (2001)

As a Director: Ekta has Directed Kabhi Kabhii Pyaar Kabhi Kabhii Yaar (2008) and Kavyanjali (2005) Ekta has Produced Bollywood films like: Kyo KiiMain Jhuth Nahi Bolta (2001). Heavily inspired by the Hollywood hot Liar Liar, this film starred Govinda and Sushmita Sen in lead roles.

Kucch To Hai (2003), based on I Know What You Did Last Summer, had among actors, Ektas dad and brother.

Krishna Cottage (2004) was a horror film.

Kyaa Kool Hai Hum (2005) starred Tusshar Kapoor once more. It is a slapstick that did decent business.

Koi Aap Sa, a romantic comedy released in 2005.

Shootout At Lokhandwala (2007) did rather well at the box office. Mission Istanbul (2008) flopped miserably. C Kkompany (2008) is slapstick, starring Tusshar Kapoor in one of the lead roles. Once Upon a Time in Mumbai

SUCCESS FACTOR

Balaji's success was attributed to its early entry into the business and presence in the regional markets. Balaji was credited for assessing the public demand properly. Its presence across the spectrum and its cordial relationship with most channels ensured it's continued growth. At the same time, its expenditure was controlled by its investment in high quality studios and equipment. Throughout the 1990s, Western-style plots had dominated Indian television soaps. Instead of following this trend, Balaji conducted research and TV shows and viewers. Balaji's research showed that the reach of fiction-based shows was about 60% and that they appealed to women across regions and languages...

In 2001, Balaji began exploring export markets for its content library. The markets in USA, UK, Canada, Middle East, Sri Lanka, Singapore and Mauritius with their significant NRI population were deemed to become major markets for the company in the future. Balaji was also planning serials in Marathi, Punjabi, Bengali and Gujarati. The Indian television software industry was highly competitive, comprising a few organized and many unorganized players. Padmalaya Telefilms, ATN International, Jain Studios, Galaxy Multimedia, TV18, Creative Eye, Pritish Nandy Communications and Sri Adhikari Brothers were the other major players in the sector.

The fact that some of the channels were getting into backward integration by starting their own production house did not augur well for production houses like Balaji. However, the ever-increasing number of channels was expected to help the company...

MARKETING AND PROMOTIONAL ACTIVITES OF BALAJI TELE FILM

y y y y y y y y

Targeted ladies by having special emphasis on household problems between ladies. Reflecting the customs of various states in India like Gujrat, UP, MP, & Maharashtra. Making ladies villain popular by their special charectristics. Grandeurous costumes. Strong tag line and music. United Indian family concept. Showing latest fashion. STAR, the leading television network in the Hindi market, will be responsible for the operations of the joint venture channels. . Balaji, which has been creating top-rated shows in various languages for the past eight years, will produce regional language shows exclusively for the joint venture.

Balaji Telefilms Limited has been promoted by actors Jeetendra Kapoor, Shobha Kapoor and Ekta Kapoor and has produced to its credit many successful serials. Promotes their Movies songs and music by playing them in their daily soaps. Fixed schedule on various famous channels at Prime time on different different time. By roping in Rediffusion Y&R, Balaji Telefilms is looking forward to leveraging its innovative and impactful marketing plans to take its motion pictures business to the next level.

y y y

The new logo has also been incorporated throughout Balaji Telefilms touch-points as well as its website.

GROWTH PATTERN OF BALAJI TELEFILM

y y y y y y y

Realization per hour from Commissioned Programming increased from Rs1.77 mn to Rs 2.22 mn. Average Balajis programming continued to dominate the ratings chart. For the week ended April 1, 2006, out of the Top 25 shows, 24 shows were from Balaji Realization per hour increased from Rs 1.1 mn to Rs 1.3 mn More than 2000 hours of programming during the year Successfully launched new shows on Star One and Zee. Cash and Cash Equivalents of Rs. 1686.10 mn as on March 31, 2010 The Board of Directors has recommended a full and final dividend of Rs 3 per share (150% on par value of Rs 2 per share) amounting to Rs 1956.31 lacs, subject to the approval of members at the ensuing annual general meeting.

Results for the year ended March 31, 2010 The audited financial results for the year ended March 31, 2010 were taken on record by the Board at its meeting held on May 9, 2010. The profit and loss account is summarized below: (in Rs. mn except per share data)

Year ended March 31, Particulars 2010 INCOME FROM OPERATIONS TOTAL EXPENDITURE OPERATING PROFIT Interest Depreciation OPERATING PROFIT AFTER INTEREST & DEPRECIATION Other Income PROFIT BEFORE TAX Provision for Taxation Deferred Revenue Expenditure w/off 2803.71 2009 1967.48 42.50% Growth%

1867.08 936.63 0.46 143.29 792.88 86.94

1293.94 673.54 1.86 97.40 574.28 49.42 39.06% 47.11% 38.06% 75.92%

879.82 -

623.70 285.61 210.73 -

41.06% 35.53% -

NET PROFIT AFTER TAX EARNINGS PER SHARE (weighted average) (Face Value is Rs. 2) DIVIDEND PER SHARE (Face Value is Rs. 2) Dividend declared as a % of par value KEY RATIOS Operating Profit Margin (%) Net Profit Margin (%)

594.21 9.15

412.97 7.61

43.89% 20.24%

3.00

16.00

150%

800%

33% 21%

34% 21%

FUTURE AVENUES
y

STAR Group Ltd. (STAR) and Balaji Telefilms Ltd. (Balaji) announced a joint venture to create a leading television network of regional language general entertainment channels initially targeted at the fast growing South India market. The joint venture, 51% owned by STAR and 49% by Balaji, will be headquartered in Chennai. Under the joint venture, the two companies will combine their resources to infuse VIJAY with Balaji content. The joint venture also targets at launching a Telugu channel by the last quarter of the year. Channels in Kannada, Malayalam and other key regional languages will be launched within the next two to three years.

y y

Producing films on big scale. They will focus on customer outside india in countries like Pakistan, Dubai, Emirates. As we know that India is the fastest growing economy in the world. All the industries in India is growing rapidly. Entertainment Industry in India has registered an explosive growth in last two decades making it one of the fastest emerging industries in India. Television itself witnessed its transformation from a single government owned channels to a medium telecasting more than 300 national and regional channels Indias Entertainment & Media industry is poised to return to double digit growth predicts PricewaterhouseCoopers in its latest report titled Indian Entertainment & Media Outlook 2010. The industry is expected to touch Rs. 1040bn growing cumulatively at a 12.4% CAGR to 2014. The industry registered one of its slowest growth rates in 2009, growing at a rate of 2.2%. This was largely due to lower than expected uptake in the advertisement spend which registered no growth and hence affected sectors like print, OOH, radio as well as Internet advertising. Negative growth in filmed entertainment also affected growth in 2009. Outlook for major segments of the Indian Entertainment & Media Industry 2010 -2014: Television: The industry is projected to continue to be the major contributor to the overall industry revenue pie and is estimated to grow at a stable rate of 12.9% cumulatively over the next five years, from an estimated Rs. 265.5bn in 2009 to Rs. 488.0bn by 2014. Film: The industry is projected to grow at a CAGR of 12.4% over the next five years, reaching Rs. 170.5bn in 2014 from the present Rs. 95.0bn in 2009. Music: Due to the tremendous uptake of the mobile VAS market, the industry is projected to grow at a CAGR of 28.6% over 2010-14, reaching Rs. 26.5bn in 2014. The key growth driver for the music industry over the next five years will be digital music, and its share is expected to move from 29% in 2009 to 75% in 2014.

Out of home (OOH): The estimated size of Out of home (OOH) advertising spend is Rs. 12.5bn in 2009, which is projected to reach Rs. 21.0bn in 2014. Its share in the total ad pie is expected to go down marginally to 5.6% in 2014 from a current level of 5.8% in 2009.