Media and Entertainment Industry
Media and entertainment are consumed by audiences of all demographics
and through various mediums such as television, films, out-of-home (OOH), radio,
animation, and visual effects (VFX), music, gaming, digital advertising, live events,
filmed entertainment, and print. India has the second-largest digital population in the
world. Its media and entertainment industry is booming over the world. The sector is still
expanding quickly, owing to Indias appeal as a content creation and post-production
powerhouse. In FY 2022, the industry grew by 16.4% to INR 1.61 trillion (US$21.5 billion).
While television remained the most popular medium, digital media rose to the second place,
followed by a resurgence of print. This year, many media companies were listed on the
stock market
The media and entertainment industry has seen tremendous changes due to
technological advancements, shifting generational behaviours, and the impacts of the
global pandemic. The industrys growth is fuelled by Indias growing youth
population, which comprises 385 million millennials, accounting for 65% of the
countrys overall population, exhibiting evolving media consumption patterns and
developing lifestyles. During the COVID-19 outbreak, people sought out more media and
entertainment at home, avoiding larger in-person activities. Digital media engagement
remained strong even during the healthier summer, demonstrating that the pandemic has just
exacerbated preexisting trend towards the digital world. Smartphones are utilised by
people in all parts of the country, including cities and rural areas. They may now access
OTT, TV, YouTube, Instagram, Facebook, and Twitter to see a wide range of media material,
including films, sports, news, music, and more
Digital media expanded the highest with INR 68 billion, increasing its
contribution to the M&E industry from 16 percent in 2019 to 19 percent in 2021
simultaneously. Since the outbreak of the pandemic, Indians have spent 52% more time on
entertainment applications.Traditional media (Television, print, filmed entertainment,
out-of-home, music, and radio) accounted for 68% of M&E sales in 2021, down from 75%
in 2019.
With individuals returning to work in 2021, the television industry had
an overall reduction of 8% from the 2020 levels, and was also lower than overall 2019
levels. In 2021, the HindiSpeaking Markets (HSM) fell by 10%, while the South Markets fell
by 5%.South Market viewership stayed greater than that of 2019, while HSM viewership fell
below that of 2019. The business model of the Local Cable Operator (LCO) is intended to be
hybrid, with a linear TV wire and a broadband connection to provide efficient content
services, internet connections, smart home services, and locality/community services.9
Government Initiatives
The Telecom Regulatory Authority of India (TRAI) is set to approach the
Ministry of Information and Broadcasting, Government of India, with a request to fast
track the recommendations on broadcasting, in an attempt to boost reforms in the
broadcasting sector. The Government of India has agreed to set up the National Centre of
Excellence for Animation, Gaming, Visual Effects and Comics industry in Mumbai. The Indian
and Canadian Government have signed an audio visual co-production deal to enable producers
from both the countries exchange and explore their culture and creativity, respectively.
The Government of India has supported Media and Entertainment
industrys growth by taking various initiatives such as 41igitizati the cable
distribution sector to attract greater institutional funding, increasing FDI limit from 74
per cent to 100 per cent in cable and DTH satellite platforms, and granting industry
status to the film industry for easy access to institutional finance.
Company Overview:
Your Company is engaged in the business of content distribution and
exhibition of feature films and other activities through its subsidiaries viz., K Sera
Sera Digital Cinema Limited- handling the Digital Cinema Roll Out and K Sera SeraMiniplex
Limited- specializing in the Exhibition Business building Cinema Halls across India. The
Company has also diversified in the jewellery business by acquiring two new subsidiaries
namely, Birla Gold and Precious Metals Limited and Birla Jewels Limited. Both the
companies are the wholly owned subsidiaries of KSS Limited.
State of Art Theatres- "K Sera SeraMiniplex Limited"
K Sera SeraMiniplex Limited is continuing its growth adding new
partners and new screens to its portfolio. We continue to provide top quality
entertainment to our audience. The Company has started making Multiplexes with four
screens.
It has also started its own Food and beverages Caf? in the name of
CINE CAF?. The Company plans to extend the catering services in to cinema which are owned
or operated by the Company. With this expansion plan the Company is also expecting a
quantum jump in its revenue.
K Sera SeraMiniplex Limited is also in the process of launching
ticketing application so that the patrons can book tickets from the comfort of their home
without paying any internet handling charges.
The Company has installed its first 2K format projector in Nagpur and
the Company expects a good jump in the revenue with this investment.
Our Miniplex will be located across India in approximately 527
districts. KSSML has already 41igitizat over 120 plus locations, which are at various
stages.
K Sera Sera Digital Cinema Limited:
K Sera Sera has launched high definition Cinema Projection Technology,
under Sky Cinex Prime. The revised technology enables to download high quality
"Digitally Mastered Content" via various electronic medium. The company has
heavily invested in Research and Development of this technology. K Sera Sera Digital
Cinema currently has now 41igitiz. 700 Screens under its umbrella and has grown its
presence in the Hindi film market with growing reach in Delhi, UP, Punjab, Uttarakhand,
Gujarat, Maharashtra, Himachal Pradesh, Chattisgarh, Madhya Pradesh, Andhra Pradesh,
Karnataka, West Bengal, Tamil Nadu, Bihar, Assam.
KSSDCL released all Hindi (Bollywood) films as well as Bhojpuri,
Gujarati, Telugu, Kannada, Bengali and other regional language to a huge success. KSS
Digital Cinema provides state-of-the-art Projection Technology to E-Cinema across India
and is known for its Service and Efficiency and therefore obtained the ISO 9001:2008
Certificate.
KSSDCL has established "State of the Art" Digital Lab and
Mastering Unit at Hyderabad, as part of expansion plan for the State of Andhra Pradesh and
Telangana. The Company had signed an MOU with Tamil Nadu Film Chamber for establishing
Mastering Unit & Digital Lab for the State of Tamil Nadu, Karnataka and Kerala and
same has been implemented and more than 100 screens have been added to these states.
In Order to bring in Technological Upgradation the Company through its
high tech Mastering facilities, we have Mastered 2K movies at our Hitech Labs at
Hyderabad, Chennai and Mumbai. More than 1000 screens overseas have used our 2K Mastered
KDMs for 2K Movies. The Company has also invested in acquisition of 2k Equipments
and have provided to theatres. The Company has been delivering 2K Mastered Content at
cities like, Batala, Patiala, Surat, Kolkata, Ahmedabad, Veerabal, Beed, Champa, Raipur
and Nagpur, where we have our own Miniplex under brand name of KSS Miniplex.
Skycinex Prime Technology Upgradation
? Remote Access Management of our entire network of server widely
spread in India.
? Support and Trouble shooting is managed electronically with our Prime
Technology.
? Exceptional feature of One Time Password (OTP) for critical &
sensitive situations
? Online download of movies content and advertisement content.
? Online download of Govt directed advertisement of mass education and
information.
? Playlist acknowledgements on the KDMST from the playback server
? Enhanced the Push feature from the playback server ? Enhancement on
the watermark
? Added stop feature on the download dialog
? Added additional meta data on the content encrypted on the EMT
? Created mono audio solution for the DOME
? Faster processing for the PINK content on EMT
? Interface enhancements on the KDMST
Birla Gold and Precious Metals Limited
Birla Gold and Precious Metals Limited is a service provider and
retailer for all kinds of goods and merchandise including precious and semi-precious
metals, stones, gold, silver, diamonds, Jewellery and all such other commodities.
Birla Gold and Precious Metals Limited has launched a Jewellery
Purchase Product named "Cherish Gold Plan- CGP" A Smart Savings Plan through
which it aims to present to end customers the flexibility to purchase and accumulate
fractional amount of 22 karat gold, rather than spending large sums of money to purchase
it in one go. Participation of Individuals under this product is voluntary and individuals
are free to purchase as much as jewellery at any time. "Cherish gold" is a
product and brand/trade name owned by BGPML.
Cherishgold.com is an e-commerce portal/virtual Jewellery Mall wherein
the largest collection of Gold, Diamond and Gemstone Jewellery, in the country, is made
available. Cherish Gold would help customers to shop from anywhere, any time and offers
door-step delivery. The products meet the stringent quality standards of purity, weight,
shape, size and aesthetic look.
Birla Jewels Limited
Birla Jewels carries on business as Service provider for all kinds of
goods and merchandise including gold, diamonds, jewellery and such other products. It is
engaged in distribution and retail of branded jewellery, jewellery products and life style
products from its current set of retail outlets, and through their franchisee model under
the brand name "Bjewelz". It provides services to equip a jewellery retail
outlet through franchisees to successfully run exclusive jewellery retail business under
the banner of "Bjewelz", a brand owned by Birla Jewels Limited.
The Company is currently 43igitiza on the launching of
"Bjewelz" retail outlet through franchisee model in various states and down the
year is planning to open the Company owned and Company operated retail store of its own.
Financial Overview
Revenue of the group stood at Rs. 498.52 Lakhs and profit/ (loss) after
tax and exceptional item stood at Rs. (4044.64)Lakhs. Reduction in revenue is mainly on
account of paradigm shift in Companys focus and diversification. The
diversifications of the business are yet to bear fruit.
Outlook, Opportunities and Threats Outlook:
The Company envisages a huge potential in motion picture production,
distribution and television content production activities. The Company also proposes to
expand its activities into overseas market. The Company is working towards diversification
on and intends to de risk the business.
Exhibition Miniplex:
The Company aims at opening Miniplex as compared to multiplexes as not
many are block buster and facility of 4-5 screens with the capacity of 200-250 may not be
viable for tier 2 and tier 3 cities as the population is not much. Hence a miniplex format
theatre serves better. Hence a Miniplex format theatre serves better. The Company has also
started building multiplexes whenever the space and opportunity arises. Miniplexes should
have a positive impact on the profitability of the group.
Exhibition Digital Cinema:
As briefed earlier that 43 digitization has seen good progress in
digital cinema as they are going to play a crucial role in the future of film industry and
there is huge potential for conversion of earlier movies in analogue to digital format
with its State Of Art Technology, "Skycinex Prime" which should provide greater
returns in the future. As a long term vision, the company is focusing on development of
DCI approved technology so that it can release the Hollywood movies. In the interim, the
company has progressed in developing its proprietary Server, in order to deliver 2 K DCP
to theatre, which would be rolled out shortly.
Jewellery Market- Retailer
? With a market size of almost INR 4,54,100 crore, the sector has a
sizeable share of the GDP at 5.9 percent, apart from large-scale employment generation and
foreign exchange earnings.
? A share of wallet analysis reveals that jewellery accounts for more
than a fourth of the discretionary spending by consumers in India. This coupled with
rising income levels in India is a major growth driver
? India has an estimated 229 million women aged 20 49. The number of
women, the key customer category for jewellery, who are employed in professional sectors
is rising very fast
? With more than 300 million people in the 25 29 age group in the
period 2011 21, 150 million weddings are expected to take place in this period
? Tier-III inclusion. With landlords and money lenders being the
primary source of financial credit in such areas, jewellers have emerged as an
alternative, providing investment options through gold jewellery.
Threats:
Market competition, regulatory approvals and fast technological
advancement remain a major threat. Piracy continues to dampen the growth, measures taken
by the Company to go digital is helping reduce its extent. High Entertainment tax affects
revenue to some extent. Film distribution is relatively risky business due toissueofunder
reportingby exhibitors.
RISK MANAGEMENT:
Some of the key strategic risks the Company faces, their impact and
corresponding risk mitigation actions undertaken by the Company are discussed in the
table:
| KEY RISKS |
IMPACT ON THE COMPANY |
MITIGATION |
| Technology |
Inability to cope with swift technological
developments can impact business |
The company has expertise technical support
staff who update the management regarding new impact business |
| Liquidity |
Non availability of timely funds may affect
our ability to operate and also delay our implementation plans for growth and expansion. |
The Company has good Financial support of
Banks and Financial Institutions helps the company to reduce its risks. |
| Regulatory |
Unprecedented changes in government policies
may impact business operations. |
The company is suitably positioned to counter
risks, posed by change in government policies. |
| Delay, cost overruns cancellationandab
andonmentorcom pletionoffilms. |
Such risks can significantly impact
completion and release of films. |
Enhanced industry corporatization enables the
company to mitigate this risk. This is carried out by entering into specific agreements,
fixing the responsibilities of the co-producers, better planning and execution. |
Internal Control System and their Adequacy:
Adequate systems of internal controls that commensurate with the size
of operation and the nature of business of the Company have been implemented. The Internal
control systems are implemented to safeguard companys assets from unauthorized use
or disposition, to provide constant check on cost structure, to provide adequate financial
and accounting controls and implement accounting standards.
Human Resource Management:
The Company places major emphasis on providing a safe & a healthy
working environment to all its employees. We encourage our employees to balance their work
and personal relation. The field being one which requires absolute creativity, the
performance of its employees is reviewed so as to provide them job enrichment
opportunities.
The Directors recognize that continued and sustained improvement in the
performance of the Company depends on its ability to attract, motivate and retain
employees of the highest calibre. We are committed to the principle of equal employment
opportunities.
Further we endeavor to create an environment where employee can use
their capabilities in support of the business.
Cautionary Statement: Statement in this Management Discussion and
Analysis Report, describing the Companys Objectives, projections, estimates,
expectation may be forward looking statements with the meaning of applicable laws
and regulations, Actual results could di?er materially from those expressed or implied.
|
For and on behalf of Board of directors |
| Place: Mumbai |
|
KSS Limited |
| Date: 30.05.2022 |
|
|
|
Sd/ |
Sd/ |
|
Satish Panchariya |
Harsh Upadhyay |
|
Chairman &Director |
Director |
|
DIN: 00042934 |
DIN: 07263779 |
+91-9892691696
