The show must go on: The multiplex growth story remains intact

Over the past few years, multiplexes have helped in bringing back audiences to the theatres. They remain ambitious on their plans for doing the same in the long run

Over the past one-and-a-half years, falling consumer confidence and a slowdown in the real-estate sector has led to many major multiplex chains delaying their expansion plans. But the long-term multiplex growth story remains intact, as by 2013, the number of multiplex screens in India is likely to cross 1,600, according to the FICCI-KPMG ‘Indian Media and Entertainment Industry Report’. Convenient geographical locations, tax exemptions and good positions in places like malls are encouraging people to spend more on recreation, which is subsequently leading to the growth of multiplexes in India.

While earlier, a film was released in approximately 250 centres, increased penetration of digital screens has enabled filmmakers to release their movies in 700-800 centres now. This can be due to lower costs per print and ease of transport of prints to remotely located screens. Multiplex owners have announced aggressive growth plans not only in the metros but in regional markets as well.

Jehil Thakkar, executive director, media and entertainment, KPMG said, “This (multiplex) market depends a lot on the real-estate sector. There is room for improvement and growth seems likely for multiplexes. Expansion plans are mainly for regional markets like Tier-II and Tier-III cities. There is a thirst for regional cinema and with more multiplexes in these regions, it will only boost the market.”

Small players are also keen on expanding their horizon as Prem Sadhwani, operational manager, Movietime Cineplex Private Limited told Moneylife, “Currently we have only three multiplexes in the two big cities, Mumbai and Delhi. We plan to come up with two more in Mumbai, and depending on the business and circumstances we might look at expanding more.” Satyam Cineplexes had plans to reach the target of 100 screens by 2012—targeting metros and Tier II cities, and its plans seem to be on track.

Fun Multiplex Pvt Ltd operates 81 cinema screens in 24 locations. Talkie Town, the cinema exhibition brand of Fun Multiplex Private Limited, has plans to roll out 150 value screens in Tier II & Tier III cities by the end of 2011. Vishal Kapur, COO Fun Multiplex Private Limited said, “We recently opened a five-screen multiplex in Amritsar—the largest in the city. Apart from this, we will be opening new multiplexes in Bhatinda, Chandigarh, Bhopal, Cochin, Chennai and Kolkata.”

PVR Cinemas, the leading player in this segment, has around 32 cinemas with 136 screens spread across the country. Reliance MediaWorks, which operates through Big Cinemas, currently has 500 screens spread across India, Malaysia and the US. Cinemax, a Kanakia group company, currently operates through 29 locations with 94 screens operational and has plans to expand and increase the number to 400 screens across the country.

The industry has also seen the commencement of miniplexes, which are multi-use theatres with two screens and a seating capacity of 75 per screen. These miniplex owners are also aggressive on expansion plans and aim at setting up over 500 miniplexes in the coming years.

Devang Sampat, senior vice president, Cinemax India Limited said, “We are aiming to launch 11 locations with 44 screens spread across the country in cities like Bengaluru, Pune, Delhi and other cities.”

The only worry for multiplex owners is the waiting period for operations to begin. On an average, a multiplex requires at least 40 licenses to start operations and the period of acquiring these licenses takes around three months. Mr Kapur explained, “Licensing is a State subject. In general, an approval of the plans and inspection on completion is needed from the following departments in the local administration—town planning, public works department, electrical department, fire department, health department and the police. Post these approvals, the local administration head (the district magistrate or the district collector) issues a licence. In metros, the final licence is given by the office of the police commissioner.”

Multiplex owners feel that a single-window clearance mechanism would work wonders in encouraging the industry to prosper and grow.

This appeared on Moneylife's website on 24 May 2010.

India’s oldest consumer body faces a loss of credibility

Consumers and activists are upset at CGSI’s decision to severe its connection with London-based Consumers International

The Consumer Guidance Society of India (CGSI), India’s oldest consumer body, continues to be roiled by controversies, this time over its decision on 16th April to terminate its association with Consumers International (CI), a global federation of consumer organisations.

CGSI is the only Indian consumer organisation which has been a council member of CI for 25 years. Unfortunately, this association has now ceased due to issues pertaining to Dr Manohar Kamath, CGSI’s general secretary (who has been in the saddle for four years). CI’s regulations forbid its members from accepting monetary help from private organisations except government bodies for their activities. This is to avoid allegations about bias or influence by sponsors and advertisers.

Things came to a head when Dr Kamath decided to start accepting advertisements in ‘Keemat’, a monthly magazine produced by CGSI for consumers. Some CGSI life members filed a complaint with CI, following which Joost Martens, director general, CI, wrote to CGSI on 3 March 2010 regarding breach of CI membership rules. The formal review of the complaint was done by the Membership Rules Committee of CI.

Members of CGSI have been raising objections since 2006, saying that Dr Kamath violates CGSI’s articles of association and rules and regulations. Dr Kamath has been fighting cases on behalf of insurance companies against consumers, whom he is supposed to protect by virtue of his position. The South Mumbai District Consumer Disputes Redressal Forum in August 2006 had prohibited Dr Kamath from appearing before it after receiving a confirmation that he was using his appearance before the forum as his profession. Vijay Chheda was the complainant and his lawyer brought forward a statement made on oath by Dr Kamath. “I am on the panel of Opposite Party’s Insurance Company. I am being remunerated by (the) insurance company on being on its panel for (the) past three-four years. I have given opinions approximately in five-six matters to the opposite part per month. I am practicing as a family physician and also as a Medico-legal Consultant having completed Master-in-Law. I am remunerated in those matters where I appear on behalf of this opposite party.”

CGSI chairman, professor NM Rajadhyaksha, replied to CI’s complaint on 23 March 2010 denying all charges levied against CGSI and Dr Kamath’s activities. Anticipating ouster from the membership of Consumers International, CGSI’s letter converged ‘withdrawal’ of CGSI from CI’s membership.

Indrani Malkani, a CGSI life member and an activist, told Moneylife, “Since the time Dr Kamath has been associated with CGSI, there have been many controversies. Two years ago, Keemat started accepting advertisements and corporate sponsorships for its seminars and public meetings in contravention of the rules of CI. Hence it was their (CGSI’s) fault.” Dr Kamath explains that CGSI had to accept advertisements for the payment of outstanding rent, “We are sure you will accept that as part of Corporate Social Responsibility and keeping in mind the fact that grants from government organisations are acceptable, this activity should not violate any norms of ethics and/or morality of consumer organisations.”

Krishna Basrur, CGSI’s senior-most member and former president, wrote a letter of appeal on 5 May 2010 to all CGSI members to ensure that every member is informed about CGSI’s problems. The letter of appeal from Mrs Basrur informed CGSI members about two modifications in the pipeline. “The Managing Committee is proposing to delete the rule in our constitution which makes businessmen ineligible for election to the Committee. The second amendment proposed is that the Board of Trustees should be dropped.” However, the Charity Commissioner has issued a stay order on the same.

Dr Kamath denies that CGSI’s Managing Committee was considering deleting the rule which makes businessmen ineligible for election to the committee. “The removal of Trustees from the constitution was to correct an anomaly and get rid of the decorative post which played no role in the development or management of the Society.”


This appeared on Moneylife's website on 11 May 2010.

New ASCI guidelines likely for insurance companies soon

The entity will look at implementing the standards set down by the insurance watchdog, by the second half of 2010

The Advertising Standards Council of India (ASCI) has plans to include guidelines for the insurance and financial sectors soon. Considering that there have been many complaints filed against insurance advertisements, the council aims at modifying the guidelines further. Alan Joseph Collaco, secretary general of ASCI said, “We will do it (the modifications) once we get a consensus from insurance companies, probably around the second half of 2010. At present, the percentage of complaints received (concerning insurance companies) is 10% (of the total number of complaints being received). However, more insurance companies are advertising with every passing day.”

However, the implementation isn’t likely to happen immediately but is on the cards. Mr Collaco further added that the complaints received by the council are on these lines: “In one advertisement, fixed deposits are compared rather unfairly with insurance. In another advertisement, insurance is shown as a route to fulfil your child’s dreams.”

There are some minimum standards advertisers and brands need to adhere to, which is in compliance with the IRDA (Insurance Advertisements and Disclosure) Regulations, 2000 referred to as ‘Advertisement Regulations’ and the code of conduct formulated by ASCI and any other regulations as applicable.

Clyton Fernandes, a research analyst (banking and financial services) with Anand Rathi Financial Services, believes that it is a positive move for the insurance industry, “It is good and more about awareness, more than anything else. At least it will make insurance and financial companies more cautious; people are often mislead about products. This might not be good news for financial companies in the beginning as it will impact their profit margins, but it will be fruitful for customers as they will get a better perspective about different products.”

SBI Life Insurance is in favour of this move initiated by the advertising council. Chandramohan Mehra, head (Brand and Communications), SBI Life Insurance told Moneylife, “Any move that is in the interest of the customers will always be welcomed. The basic ingredient to keep the customers’ trust intact is to initiate honest communication.”

In the month of March 2010, the council had implemented specific guidelines on the auto and food & beverage sectors. Mr Collaco had said, “ASCI realises that cutthroat competition among products and the need for uniqueness can sometimes lead to senseless exaggeration and depiction of unsafe practices.”

ASCI is a self-regulatory voluntary union of the advertising industry that plays the role of a body that receives complaints from consumers and the industry with the help of its Consumer Complaints Council (CCC), against advertisements which are considered false, misleading, indecent, illegal, leading to unsafe practices, or unfair to competition. ASCI had upheld complaints against six advertisements in February. These advertisements include brands like Dabur Chyawan Junior, Shanti Badam Amla Hair Oil, Maruti SX4, IMS CAT Approach Program, Tata AIG Insurance, and Mahindra Flyte Power Scooter. More documents on complaints are expected in the near future.

This appeared on Moneylife's website on 30 April 2010.

Broadcasters apprehensive over proposed govt watchdog for TV ratings

The government has plans to form a broadcasting regulator which will cater to TV channel registrations, licences and ratings. The industry is not amused

The Broadcast Audience Research Council (BARC), an organisation set up by advertisers to oversee television audience measurement and ratings for broadcasters, will most probably be in place by next month. However, the government has decided to form a different broadcasting watchdog which will cater to registrations, licences and ratings. So is it time for the TV industry to get its act together?

At a conclave in Mumbai on 11 June 2010, LV Krishnan, CEO, TAM Media Research, said, "In our last meeting with the ministry last week, they did mention forming of a broadcasting body like TRAI to monitor the ratings and licences given to channels, in the near future. We need to work faster as the government has (alternative) plans."

TAM has certain guidelines to ensure that its sample TV ratings are measured accurately. It is in favour of working with the government as long as the intervention isn't too blatant.

"The government can surely help if they don't take an anti-industry stance. It can play a vital role in aiding or at least helping in reducing the taxes imposed on the expensive equipment required for measurement," said Mr Krishnan.

Does the industry feel that the government's intervention is required? "Actually there is a vested interest of the government (in intervening in the ratings of TV channels). DD believes that whatever ratings are done by TAM are under-measured," said Paritosh Joshi, CEO of Star CJ India. Sam Balsara, chairman, Madison World, agrees, "By regulation we mean self-regulation and not government intervention. Our fear is that if government gets involved, vested interests will also be involved because many members of Parliament also own channels."

The industry's inability in creating a responsible body to cater to ratings and licences has been hampering its own growth. The advertising industry is an almost Rs22,000-crore market whereas the TV ad market is only about Rs9,000 crore.

What is the main reason? "As far as ad agencies and advertisers are concerned, these kinds of conflicts are not persistent. And more than anything else the TV industry is dependent on advertising more than ratings," said Mr Balsara.

Broadcasters still argue that ratings done by TAM and other agencies are accurate because the goal is clear-measurement of viewership to help them work towards creating better content. As Mr Krishnan said, "As complexity of measurement increases, industry involvement also becomes essential. If the industry comes along and works hand-in-hand, we can work in a much better fashion." Unfortunately, the industry doesn't have a plan or blueprint of what the solution can be. Coming back to where we started-is government intervention really required?


This appeared on Moneylife's website on 14 June 2010.

Is Piramal Healthcare in an exit mode?

The company says that it has no plans to exit the diagnostics space altogether. However, as we had earlier reported, its plans of acquiring smaller labs for growth does not seem to be working

Piramal Diagnostic Services Private Ltd (PDSL), the diagnostics service unit of Piramal Healthcare Ltd, has shut down its diagnostics operations in Delhi. A few company officials say that this step is being taken due to losses the company has incurred over two to three years. Apparently, 60 people have also been retrenched with a compensation of three months’ salary at the Delhi unit. PDSL’s operations are estimated to be around Rs200 crore.

Moneylife had reported earlier (http://www.moneylife.in/article/8/4344.html) that the company’s strategy of buying a large number of smaller players (called ‘roll-ups’ in the US) might not be successful. PDSL had plans of acquiring 10 pathology labs across the country, from which it was targeting a minimum turnover of Rs5 crore each from these units.

Dr Swati Piramal, director, Piramal Healthcare, informed Moneylife, “The Delhi unit was located out of the way, which made it difficult for customers to access it. So we decided to close it.” However, she denied that the company had plans to exit the diagnostics space altogether. “We would like to clarify that the news appearing in certain sections of the media about the Piramal Group planning to close its diagnostics operations is completely baseless and untrue. We have expanded rapidly till 2009 and will continue to expand after consolidating and strengthening business processes.”

Metropolis Healthcare and Piramal Healthcare are among the most competent players in the pharmaceutical space. Metropolis started its operations in 1981 and has 50 plus state-of-the-art laboratories across the globe. Ameera Patel, CEO and executive director, Metropolis Healthcare Ltd said that Piramal’s unit in Delhi was a greenfield project, which could be the reason for the closure.

“Greenfield projects in general are difficult as trust and credibility have to be established from scratch in that location,” Ms Patel told Moneylife.

Piramal Healthcare had recently acquired ‘I-Pill’, an emergency contraceptive pill brand from Cipla and the anesthetic product operations of Bharat Serums, a plasma derivatives manufacturer.

Sapna Jhawar, a pharmaceutical analyst from ShareKhan explained, “A lot of news has been on and off in the media about Piramal’s selling plans. Piramal has not been that aggressive with acquisitions lately—especially after their plans to acquire 5-10 path labs earlier. It (the diagnostics business) has been a steady source of income for Piramal; it could have made about Rs250-Rs300 crore by 2012. It doesn’t really make sense for Piramal to shut down its diagnostics operations until and unless it has got a good value for the business from a private player. Plus, even if this is the case, it will not affect Piramal’s business to a great extent, considering that it (the diagnostics business) is a small part of its (overall) business.” The Delhi unit contributed around less than 1% to Piramal Diagnostics’ revenues, and its closure is not expected to impact its overall operation in a significant way.

First story — appeared on Moneylife's website on 6 May 2010.

A Lifeline for Mumbai’s Slum Women

About a voluntary organisation that is dedicated to helping Mumbai’s slum women help themselves

With a beautiful smile on her face, Shanta, a junior supervisor at the Centre for the Study of Social Change’s (CSSC) Deepakwadi clinic in Bandra, proudly claims, “I have been here for 18 years, and I love to work for CSSC because I work for my own people.” CSSC has 21 Women of India Network (WIN) clinics spread across Bandra, Khar and Santa Cruz in Mumbai. Registered as a public trust in 1972, CSSC was started by intellectuals like Govindrao S Talwalkar, NV Sovani, GD Parikh, AB Shah and the late Tarkateerth Lakshmanshastri Joshi. The late
Dr Indumati Parikh, a distinguished humanist, had guided the activities of CSSC from the 1970s. The Centre is now headed by Dr Ramesh Potdar, who is the honorary general secretary and a committed medical practitioner.

WIN is CSSC’s flagship project. It covers areas like reproductive health, child health, family planning, water & sanitation, empowerment through non-formal education, skill development programmes, income generation and formation of self-help groups (SHGs). Dr Potdar says that the nature of their work allows health workers to first bring these women to the clinics, which then opens the door to other initiatives to empower them. CSSC is in touch with nearly 200,000 families through its health workers and mainly helps slumdwellers. “Our health workers are in touch with every household in the slums of Bandra, Khar and Santra Cruz. They bring women and children to the clinic for regular check-ups.

This helps make a big difference in the lives of these people,” says Dr Deepali Prabhat of CSSC. Using health as an entry-point was a helpful tool in motivating slum women to accept non-formal education and training for income generation.

Dr Potdar says, “We help people to be well-informed and not follow blindly what everybody says. It is always better to ask ‘why’. It has been an uphill task to inculcate an enquiring approach among these people and make them listen.”

CSSC has undertaken several projects. These include strategic research, customised training and capacity-building for government departments and non-governmental organisations (NGOs); skill-training for income-generation; awareness campaigns on development issues; and knowledge management and partnership between policymakers and grassroots workers. CSSC has also conducted community-based interventions for urban and rural poverty alleviation and training of trainers (TOT) in health & development.

A research project named ‘Saras’, a trial intervention for food-based micronutrient supplements, is currently under way. It will monitor the health of 6,000 women during the pre-conception and pregnancy period to ensure an increase in the birth-weight of 1,500 newborns and reduce neonatal problems and deaths. Vanitha, a junior supervisor on this project, said, “I am never tired of my work as I get to know the patients and understand their problems.”

CSSC also holds ‘Special Clinics’ for children who are below five years of age and ‘Gynaec Clinics’ for women once a month at each WIN centre.

There are plans to initiate a project called ‘Salaamat’ which involves setting up a primary healthcare hospital on the CSSC campus and transit emergency medical services with emergency ambulance access.

CSSC also plans to create a cropus for healthcare and set up a federation to help poor communities to cope with the burden of rising healthcare expenditure. This initiative will involve the local, state and central governments and a host of other government bodies.

Initial funding for CSSC was provided by ICICI Bank, Mumbai. The International Fund for Population Development, based in Lausanne (Switzerland), also provides support to WIN. CSSC is seeking to raise funds for its projects through grants and support from a group of regular donors (in cash and kind). Donations to CSSC are tax-exempt under Section 80G

Centre for the Study of Social Change (CSSC)
MN Roy Human Development Campus
Opposite Govt. Colony Building 326
Bandra (East), Mumbai 400051
Tel: 91-22-26570924/ 26570973
Email: rdpotdar@wincssc.com
rdpotdar@snehamrc.com
Website: www.cssc.org.in


This appeared on Moneylife's website on 3 June 2010.

A Social Cocoon For Senior Citizens

On The Family Welfare Agency which keeps Mumbai’s elderly in fine fettle

As soon as you enter the 10th building of the BDD Chawl (Mumbai), you hear peals of laughter; an elderly man of about 63 years screams: “I told you the Rani will be mine.” Keshav Sawant, who has been coming here for many years, loves playing carom with others of his age group at the day-care centre run by The Family Welfare Agency (FWA). He said, “Apart from recreation facilities that the centre provides, it gives us the opportunity to interact with people like us. Difficulties are resolved because we discuss our problems and try to help each other; it is not possible at our own homes.”

The FWA’s main focus has always been elder care. It has completed 60 years in providing services to senior citizens in Mumbai. Alpa Desai, a social worker with FWA, said its reach is quite diverse as it includes senior citizens from the working class, labourers, mill workers and even those who are well-educated but are just as eager to explore and enrich themselves. “We are not bound geographically but it becomes difficult to cater to everyone in the city (Mumbai). We believe in horizontal networking rather than vertical (the agency has no plans to expand to other cities). We encourage independent entities to collaborate in helping the older citizens of the city,” she says.

FWA was established in 1950 and has two centres located in Lower Parel meant for the mentally ill and another centre at Dharavi for elderly people with no mental illness. The Agency has metamorphosed from community-based social work to providing specialised services in the field of ageing and mental health. In 1979, FWA initiated its day-care services for the elderly, including recreational, medical, educational and income-generating activities.

Subhash, who is 63 years, finds relief and happiness in FWA. “Earlier I had blood pressure and knee problems when I was sitting at home. The yoga exercises that we were taught here help me to keep fit. In fact, my knee has stopped paining because of regular exercise. We love to be here with each other.”

FWA reaches out to the care of senior citizens facing neglect or ill-treatment, widows, the destitute and those suffering from Alzheimer’s/dementia or other mental diseases. Along with counselling, FWA provides legal information. Reading sessions are held whenever possible for those who cannot read but love to learn more. Recreation is more of a therapeutic activity which makes them happy. There are structured indoor and outdoor games and trips organised by FWA for the elderly. There are seminars and interactions conducted on social issues. “Two months ago, we held a seminar on the RTI (Right to Information) Act. Our next step would be to acquaint them with the procedure for filing applications; maybe we will take up an issue that concerns senior citizens and file an RTI application on it. We also try to ensure that senior citizens are made aware of new and existing laws directed towards them,” adds Alpa.

FWA also promotes elder care by campaigning in colleges and organisations in Mumbai. “We had organised a poster competition among colleges last year with the theme of ‘Elder Abuse’, in English and Marathi. The posters are still used by us for issue-based networking. The most encouraging result was that 10 senior citizens came forward as volunteers. These 10 volunteers are very enthusiastic about the campaigns and also enact a 10-minute play depicting ‘elder abuse’ to promote awareness.”

FWA’s physiotherapist also provides home care to the elderly, though this facility is limited to Bandra. “We would like to extend this service; we have many students who have volunteered to help,” says Alpa. FWA had developed several training modules for care of the elderly. The Agency was actively involved in advocacy for the National Policy for Older Persons.
FWA accepts donations which are tax-exempt under Section 80G.

The Family Welfare Agency
Near BDD Chawl No.10,
NM Joshi Marg, Lower Parel (E)
Mumbai: 400 013
Phone: 23082085
Email: fwa.eldercare@gmail.com


This appeared on Moneylife's website on 1 July 2010.