Balaji Telefilms & STAR announce Joint Venture to Launch Regional Language General Entertainment Channels in India

STAR Group Ltd (STAR) and Balaji Telefilms on April 19, 2007, has announced a joint venture to create a leading television network of regional language general entertainment channels initially targeted at the fast growing South India market. The joint venture, 51% owned by STAR and 49% by the Company, will be headquartered in Chennai.

Under the joint venture, the two Companies will combine their resources to infuse VIJAY with the Company content. The joint venture also targets at launching a Telugu channel by the last quarter of the year. Channels in Kannada, Malayalam and other key regional languages will be launched within the next two to three years.

STAR, the leading television network in the Hindi market, will be responsible for the operations of the joint venture channels. Balaji, which has been creating top-rated shows in various languages for the past eight years, will produce regional language shows exclusively for the joint venture.

Mr. Jeetendra Kapoor, Chairman, of the Company said, "We are excited about this opportunity to strengthen our relationship with STAR. We believe that combining the expertise and resources of the two Companies will enable us to create the leading regional language TV network in the country. This new partnership also helps realise our ambitions to go upstream by taking a stake in the broadcast business. I am confident that our investment in this joint venture will generate significant value for our stakeholders."

Further the Company has informed that, Mrs. Shobha Kapoor, currently the Managing Director and Chief Executive Officer of the Company, has relinquished her role as Chief Executive Officer to Mr. R Karthik, currently President - Strategy And Business Development. Mrs.Kapoor will continue as Managing Director and Mr. Karthik will be the Chief Executive Officer of the Company.

Source : Equity Bulls

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