NDTV plans to enter the ecommerce space, the company has informed the BSE. Its board has approved that NDTV Worldwide Ltd, a subsidiary of NDTV Ltd, will enter the e-commerce business.
NDTV WorldWide is the media services division of NDTV, and offers services like setting up and managing channels to broadcast training, channel branding and technology consultancy. It is not clear whether the company is referring to an online commerce business, or if is planning a new TV Channel, with home shopping, on the lines of STAR CJ and HomeShop18. NDTV’s FY12 Annual Report states that Shyatto Raha is the CEO & Director of NDTV Worldwide Limited. The company reported a turnover of Rs 22.74 crore in FY12, and a profit of Rs 6.8 Crore.
India is awash with e-commerce businesses – throw a stone at the audience in a digital conference, and you’ll hit seven. However, the sector is going through a significant amount of turbulence right now – companies are running out of cash, rumors abound about malpractices, the legality of some businesses is in question because the FDI policy hasn’t worked in favor of E-commerce in India.
A late entry into a market that has grown, but is now struggling for capital, isn’t that bad an idea – someone else has done the hard work and created a market for you. But the question remains whether NDTV will be able to pull it off – the affiliation with the NDTV brand will give it leverage, but being attached to a large (possibly, comparatively) bureaucratic firm might not quite help it scale.
Merger of NDTV Convergence And NDTV Labs
The merger of NDTV Convergence Ltd and NDTV Labs still hasn’t been completed. They’re going to be merged into a new subsidiary, unnamed for now. NDTV Convergence is the digital business of the company, running NDTV’s online and mobile (does NDTV’s mobile business still exist?) business. NDTV Convergence reported revenues of Rs 33.95 crore for FY12 and a profit of Rs 5.39 crore. NDTV Labs reported revenues of Rs 2.86 crore for the same fiscal year, and a loss of Rs 0.39 crore.
What does this mean for MediaNama readers? We won’t get segmented information on NDTV Convergence’s financial results via NDTV’s annual report, next to next year onwards.