The Hinduja group is acquiring the balance 49 per cent stake in its movie channel subsidiary Cable Video India Ltd (CVIL), which owns the CVO channel, as a step towards consolidating the business of its media companies.
Currently, Hinduja TMT, along with its media holding subsidiary IN Network Entertainment, holds a 51 per cent stake in the company with the balance being held by Asia Vision Entertainment and its associates.
The decision to buy out the remaining equity stake in CVIL comes in the wake of the group putting in place a restructuring plan on the basis of the recommendations of consulting firm Accenture.
Accenture had suggested a simpler structure for Hinduja TMT with intermediate layers of 100 per cent subsidiaries as opposed to 51 per cent subsidiaries, which would impart greater transparency.
CVIL, launched in 1996, owns and operates CVO, a leading Hindi movie channel having a library of over 1,600 Hindi films. The channel currently has a viewership of around 6 million households in 104 centres across the country.
CVIL has also recently launched an English movie slot on the CVO channel. The company has also expressed its intention to start an interactive music channel.