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.