“India is the most conducive market for consolidation in the media and entertainment sector”, asserts Anurag Batra

Anurag Batra is the Chairman & Editor-in-Chief of the BW Businessworld Group and the Founder & Editor-in-Chief of the exchange4media Group. Anurag Batra is a serial entrepreneur, media mogul, a journalist and an angel investor all rolled into one. Anurag Batra is also appointed by Government of India as the Chairman of an industry committee formed to come up with a vocational training framework for the media, communication and entertainment industry. Anurag Batra discusses on the Zee-Sony merger matter and the immense opportunities that the combined entity will be able to create. He also highlights the importance of home grown Indian giant companies and the essential role they play in the Indian media and entertainment sector.

Zee is a home-grown Indian company and its merger with a global giant predicts well for the industry as it is bound to drive consolidation and growth while bringing in enhanced investment into the sector. Anurag Batra highlights that the immense opportunities the combined entity will be able to create in terms of employment generation can be transformative for the entire Indian creative ecosystem. He also identifies that this can in turn propel advertiser sentiment and spending.

As per the thoughts of Anurag Batra, India is the most conducive market for consolidation in the media and entertainment sector. “With behemoths like Google and Facebook scaling up massively in India, we need larger players to take them on”, Anurag Batra states. This can lead to the race for digital advertising ending up as a two-horse race with maybe one challenger, who may have the financial resources. Anurag Batra suggests that we need a strong counterbalance to the other bigger players to keep the Indian media and entertainment sector vibrant and competitive.

Anurag Batra believes that financial investors should not suddenly assume the mantle of strategic partners. If they want to see the creation of value for all stakeholders, they must continue to trust the management and board of the company while establishing appropriate checks, balances and governance controls. Anurag Batra considers this especially important if the management is always delivering spectacular returns. Strategic support and inputs would certainly assist the management, he says, but intervention when it is not required can become a sure cause for long-term disaster on the back of some misplaced desire for short-term satisfaction.

Anurag Batra is the Chairman & Editor-in-Chief of the BW Businessworld Group and the Founder & Editor-in-Chief of the exchange4media Group.

Anurag Batra also identifies the fact that family-driven companies deliver more shareholder value. Empirical research has shown that family-run companies have delivered spectacular returns too. Anurag Batra is certain that the Zee-Sony consolidation led by Zee’s Punit Goenka will create even more value for all stakeholders. This merger will empower family-driven companies to be the anchor of India’s vibrant and fast-growing business environment, attracting foreign investments, Batra hopes.

Home-grown Indian giants such as Zee have also contributed to the betterment of various socioeconomic indicators in the last three decades and to the betterment of the country across the board, through employment generation, pioneering the sector, gigantic CSR efforts and their unflinching and deep support to the nation during the pandemic.

While Gautam Adani’s impending entry into media may happen this year, Annurag also notices that Sanjiv Goenka has also been keen on media and entertainment for a long time and has been keen on growing his portfolio. Even if that happens, Anurag Batra asserts that we need to preserve the Zee legacy and strengthen it by creating a strong Zee-led entity through this merger with Sony. In Anurag Batra’s view, till more large Indian business houses invest and create larger players in the sector, the prudent approach would be to encourage consolidation to create larger entities that can compete well and continue driving growth in the Media and Entertainment sector.