One of the most talked about developments of the Indian print industry in 2010 – Jagran Prakashan’s acquisition of Mid Day Multimedia’s print business – completed a year in April 2011. While the two companies wasted no time in consolidating forces on purchase, printing and even content & circulation in relevant markets, now the relationship will show effect in the companies’ financial results and advertising sales as well.
Sanjay Gupta, Editor and CEO, Jagran Group, divulged that the results of the two companies that were hitherto being reported separately, would now be consolidated from the fourth quarter of fiscal year 2010-11.
The other interesting development is on the advertising sales front, where the groups have already started cross selling. The companies have worked out selected categories and certain kinds of advertisers to whom cross selling of advertising space would be done.
Gupta added, “We are cross printing at different locations, so in Delhi, Mid Day is being printed from our press. In Mumbai, we shifted to Mid Day’s press. Even on the content front, there are areas one can collaborate. The two publications track each other’s news. You see Mid Day news in (Jagran) newspaper and that gives us an edge in terms of reporting. For example, in cricket, Mid Day is very strong, so we get an edge there.”
The deal has not only given Jagran Group presence in the English print market, but also a footprint in the dynamic media market of Mumbai. Manajit Ghoshal, CEO, Mid Day, remarked, “Jagran Group is looking forward to launch many initiatives in Mumbai using the strength of Mid Day’s infrastructure and understanding of the Mumbai market.”
Post the deal, Mid Day has benefited by using Jagran’s scale in terms of purchase of newsprint and capital goods too. Mid Day now also has access to the multiple business and sales offices of Jagran across the country and this, according to Ghoshal, greatly enhances Mid Day’s reach to new markets and clients.
Gupta also noted that the City Plus team, the marketing team, the procurement team and the editorial teams are leveraging synergies at various levels. “These are small things, but eventually you start saving on strategy decision making teams. They become smaller and that is where synergies come in,” remarked Gupta.
Mid Day officials informed that there would be content and sales synergies on digital initiatives of the two Groups as well.
As is known, Jagran Prakashan bought the print business of Mid-Day Multimedia through a demerger of Mid Day’s print business and a merger of that into Jagran with swap ratio in the year 2010.