Hinduja TMT Limited has worked out an expansion strategy. The company plans to offload 20 per cent stake to strategic partners in its cable subsidiary IndusInd Media Communication, raise Rs 11 crore in its second subsidiary In2cable.com, and go for a private placement in the holding company HTMT.
IndusInd Media Communications, which owns InCablenet, is aiming at the cities where other multi-system cable operators like Siti Cable and Win Cable are not present. As suggested by PwC, the company is looking at smaller cities with a population of about five lakhs.
The business plan for IndusInd Media Communication includes, improving franchisee-operator relationship and introducing addressability on the cable network. However, incorporation of strategic partners in IndusInd Media Communication will need Intel’s approval, which has invested around Rs 230 crores in the company and holds about 3.3 per cent stake.
HTMT’s ISP subsidiary, In2cable.com, too is spreading its wings in the cities other than Mumbai, Hyderabad, Bangalore, Delhi, Ahmedabad, Nagpur and Belgaum. In these cities, as an ISP it also runs cyber cafes. Talks are on with some investment funds and the deal is expected to be signed within three months.