UTV Software Communications Ltd Company Summary

UTV Software Communications Ltd Summary

UTV Software Communications Ltd is Indias first integrated global media and entertainment company. The company has five business verticals, which includes TV content production & services, motion pictures, broadcast, interactive and new media. The company and their subsidiaries create, aggregate and disseminate content of various genres across varied distribution platforms. The company has subsidiaries with offices across India, Mauritius, UK USA and Japan. Their subsidiaries includes UMP Plc, UTV Motion Pictures Mauritius Ltd, IG Interactive Entertainment Ltd, UTV Communications (USA) LLC and Ignition Entertainment Ltd. The company has grown from a Television Production house, into an integrated media company with interests in Motion Pictures, New Media that includes Animation and Gaming, Television Content and Broadcasting.UTV Software Communications Ltd was incorporated in June 22, 1990 as a private limited. The company became a public limited on November 27, 1995. The company primarily engaged in the production of television content for Doordarshan and ad films. In the year 1992, with the entry of satellite TV, the company produced the content of around 250 hours for Zee TV and became one of the largest content providers. During the same period, the company expanded their business into in-flight entertainment programming and dubbing.In the year 1993, the company ventured into business of acquiring programs from outside producers and marketing airtime on their programs. In the year 1995, they launched Indias first daily soap titled Shanti. In May 1995, the company acquired Laezer Production Pvt Ltd in order to enter into the area of postproduction. During the year 1995-96, the company ventured into movie distribution business.In November 1998, the company diversified into broadcasting business, by acquiring interest in Vijay Television Ltd. In the year 2000, they incorporated UTV Net Solutions Ltd. In August 2000, the company acquired UTV International (Singapore) Pte Ltd from Media Ventures Ltd and Unilazer Hong Kong Ltd through a share swap. Also, they acquired the remaining equity share in United Studios Ltd and thus became a wholly owned subsidiary company.In the year 2001, the company acquired the remaining 80% stake in Vijay Television Pvt Ltd for a consideration of Rs 69.52 million. During the year 2002-03, they acquired the studio business of Western Outdoor Media Technologies Ltd in order to attain leadership position in post production, special effects and animation business. Also, they sold their entire holdings in UTV International (Singapore) Pte Ltd and Sharkstream.com Pte Ltd to Logic Plastic Pvt Ltd. In February 2004, the company hived off their post production and 2D animation business in favour of United Entertainment Solutions Pvt Ltd. During the year 2004-05, the company successfully launched a worldwide Film Distribution Network with offices in USA, UK and Mauritius, For that, they incorporated three wholly subsidiaries, namely UTV Communications (USA) LLC, UTV Communication (UK) Ltd, UTV Communications (Mauritius) Ltd. Also, they successfully completed their IPO, comprising around 7 million equity shares and was issued at Rs 130 per share. The IPO was oversubscribed about 27 times.In August 2004, they sold their 43.89 stake in Vijay Television Pvt Ltd to STAR Group. Also, they sold their holding in Media Capital Company (India) Ltd for a consideration of Rs 2 lakh. In September 2004, the company through their joint venture United Home Entertainment Pvt Ltd launched Indias first local content kids channel titled, Hungama TV. During the year 2005-06, the company produced programmes for channels like Star Plus, Star One, Sony Entertainment Television, Zee TV, Zee Cafe, BBC World, Doordarshan and Hungama TV. In the Airtime Sales business, the company acts as a quasi-broadcaster primarily on a leading South Indian Network. They market airtime across 4 major languages, namely Tamil, Telugu, Malayalam and Kanada. In March 2006, the company sold their entire holding in UTV International Holdings (BVI) Ltd to Media Footing Sdn Bhd for a consideration of USD 5,10,000.During the year 2006-07, the company inducted a strategic investor, namely The Walt Disney Company (Southeast Asia) Pte Ltd, whereby, Disney acquired 14.85% stake in the company. Disney also acquired the companys entire stake in their broadcasting venture, United Home Entertainment Ltd (Hungama TV). Also, the company transferred their motion pictures production business to UTV Motion Pictures (Mauritius) Ltd. United Entertainment Solutions Ltd, a wholly subsidiary company merged with the company with effect from April 1, 2006. In March 2007, UMP Plc was incorporated at Isle of Man and became a wholly owned subsidiary of the company on April 12, 2007. During the year 2007-08, UMP Plc, a subsidiary company acquired 99.75% controlling stake in UTV Motion Pictures (Mauritius) Ltd and thus UTV Motion Pictures (Mauritius) Ltd became a downstream subsidiary of the company. During the year, the company incorporated two 50:50 joint ventures companies, namely Windmill Entertainment Ltd and Smriti Irani Television Ltd. During the year, the Disney increased their stake in the company from 13.7% to 32.1%. During the year, the company forayed into the Telugu film industry and acquired distribution rights for Telugu Superstar Mahesh Babus 2008 blockbuster Atidthi and signed him for another 2 movies. They also ventured into the Tamil film industry with their first co-production Kennamoochi Yennada. The company tent-pole production Jodha Akbar, the first blockbuster of 2008, released in 1500 screens worldwide.In December 14, 2007, IG Interactive Entertainment Ltd acquired 54.86 % equity stake in Indiagames Ltd, which is into the business of mobile and online gaming. Simultaneously, the company also acquired 12.11% equity stake in Indiagames Ltd. Thus, the company along with IG Interactive Entertainment Ltd holds 66.97% stake in Indiagames Ltd.In January 2008, the company acquired 100% stake in UTV TV Content Ltd (formerly known as UTV Movies Ltd) for a consideration of Rs 0.50 million. Also, they sold their 98.75% equity stake in UTV Broadcasting Ltd, a dormant company for a consideration of Rs 19.75 million. In April 2008, the company acquired 100% equity stake in UTV New Media Ltd, which is in the business of developing and maintaining websites and acquisition and exploitation of digital rights on mobile and digital platforms. In May 2008, the company incorporated a joint venture company, namely RB Entertainment Ltd. Also, they acquired 100% holdings in First Future Agri & Developers Private Ltd. In June 2008, The Happening, the first mainstream Hollywood film was released by the company. In July 2008, the companys broadcasting unit entered a deal with IPTV service provider, The New Media Group, to launch two channels on the IPTV platform. Hindi movie channel UTV Movies, and English business news channel UTVi, will be launched in Japan, Australia and New Zealand on the World On-Demand IPTV platform. Also, the company entered into a MoU to acquire a 51% stake in one of the tier mobile content aggregator in the United States of America through one of the Companys subsidiary, Indiagames Ltd.In August 2008, the company acquired 75% equity stake in UTV Global Broadcasting Ltd. Also, IG Interactive Entertainment Ltd (IGI), a UK based 100% subsidiary of the company, entered into definitive agreements with True Games Interactive (True Games), a California based corporation for acquisition of 80% stake in True Games.