business india publications ltd Management discussions

BUSINESS INDIA PUBLICATIONS LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS: OVERVIEW: The turmoil in the global financial markets and the consequent slowdown in demand has expectedly also impacted India and therefore the Indian corporate and business world. This has had a ripple effect, impacting advertising spends, the life source of the media business. Consequently the revenue figures of the publications of Business India Publications Ltd (BIPL) have also shown a decline. REVENUES: Advertising Sales: During the period, April 08 - March 09 advertising spends have shown a drop and print media in general and the financial press in particular suffered. Advertising revenues for BIPL publications showed an encouraging growth for the first two quarters of the year. Unfortunately as the economic outlook deteriorated the next two quarters especially the last quarter registered an unfortunate decline resulting in an overall fall of 7% in advertising revenues for the year. This is far better than estimates emerging on the decline across the print industry, which show a decline of a staggering 32% during the same period. However, a resurgence of the Indian economy will result in the corporates increasing advertising spends and consequently our publications too will reflect this with greater number of advertisements and thus increased revenues. The marketing team has put into effect plans to counter the shortfall in traditional advertising by proposing supplements and advertorials to boost the sales effort. Thus, we are confident of an improved performance during 2009 - 2010. Circulation Sales: Newsstand Sales & Subscription Sales showed an overall drop but sales of BIPLs flagship publication Business India stayed in positive territory - recording modest but welcome growth in terms of numbers and consequently revenue. The reader loyalty story was underlined by the independent IRS 2009 readership survey, which confirmed that in a negative climate for business publications - Business India declined least amongst its competitors. To boost sales the Brand Management team at BIPL introduced a number of subscription & sales schemes, which will result in making up lost ground as the economic scene improves. EXPENSES: Paper: The cost of paper, constitutes one of the foremost expenses of any publishing business and so too at Business India Publications Ltd (BIPL). Since all the BIPL publications are printed on imported paper (except the covers of the magazine) the company is subject to the vagaries of the exchange rates and the prices ruling in the international market. During 2008-09, the price of paper in rupee terms purchased and utilized by the company increased by 17%. Staff responsible for procurement have been instructed to seek fresh suppliers and negotiate better terms. Likewise, personnel at the press have also been instructed to ensure more efficient utilization of paper and reduce wastage to counterpoint the increase in cost. Printing and Production: Costs for printing and production compared to last year have remained flat with no increase in cost. This is due to continuing vigilance to keep costs under control. Personnel Cost: Personnel cost rose by 20%o in the year under review. These increases were inevitable in order to retain staff and to make some new unavoidable appointments. Significantly, there was actually a net reduction in staff figures from the previous year. Administrative Expenses: Administrative expenses also remained the same as last year due to tight control on costs exercised by the company. EVENTS: During the period under review the company selected, announced and celebrated the Business India Businessman of the Year, Inside Outside Designer of the Year and Apollo Tyres - Auto India Best Brand. Business India Businessman of the Year: The oldest and most reputed award for the corporate sector was awarded to Mr. P.R.S. Oberoi, of the East India Hotel Group at a glittering function at The Royal Western India Turf Club, Mahalaxmi, Mumbai. The Honble Chief Minister of Jammu & Kashmir, Shri Omar Abdullah was the Chief Guest. Held soon after the terrorist attack on Mumbai industry leaders including Mr. Vijay Mallaya, Chairman, United Beverages (UB Group), Mr. S. Ramadorai CEO and Managing Director, TCS Ltd, Mr. Uday Kotak, Vice-Chairman, Kotak Mahindra Bank Ltd, Mr. Sajjan Jindal, Chairman & Managing Director, JSW Ltd, Mr. Prashant Ruia, Essar Group and Mr. Nasser Munjee. Chairman, DCB Ltd addressed the theme Corporate India speaks against terrorism. IO Designer of the Year: The theme for the Inside Outside Design for the year Award 2008 was water. Since the inception of the award in June 1997 Inside Outside has always received an overwhelming response and so too this year entries were received from all over the country. The eminent jury comprising architects Shimal Javeri Kadri, Rahul Gore and Shilpa Shah diligently scrutinized and judged the entries to finally announce the winner - Bangalore based architect Tushar V, of Orchre Architects for his design of the Tyagi residence. Auto India Best Brand: Now in its 2nd year the Auto India Best Brand event is rapidly establishing itself as a must- attend event for the automobile industry. At the function the Best Brand Award, in various categories for cars and motorcycles chosen by readers of Auto India by way of a survey were awarded. Business India Exhibition Pvt. Ltd. (BIEPL): Competition and economic condition conspired to a less than favourable year for BIEPL. The management team has worked out a nuanced strategy of focused exhibitions and a concentration on conferences to battle the downturn and are hopeful of an upswing in the fortunes of this important and dynamic company. It is also important to note that in the previous year the company was in operation for only six months. Therefore, the previous years figures are not comparable with the current years-figures. The way forward: We expect the company to have settled all its debts very shortly. This has been a long and difficult period for Businesss India Publications. But with the past behind us and with the expected economic upswing we expect to resume a strong growth path. We expect to grow both through organic growth and by acquisitions. We hope to re-establish our position as a strong independent media house in India.