Zee Telefilms has established control over the management of ETC Networks, with Subhash Chandra, chairman of Zee Telefilms, being elected chairman of the ETC board, and Sandeep Goyal, group broadcasting CEO of Zee Telefilms, being appointed managing director of ETC. Rajiv Garg, Vikas Gupta and Hema Malini have been appointed additional directors on the board.
Jagjit Singh Kohli, former managing director and original promoter of ETC Networks, has stepped down from the board. Y Radhakrishnan and Yogesh Shah, former promoter-directors, have also followed suit. However, they will continue to remain involved in the management of the company.
Zee Telefilms acquired a controlling stake in ETC Networks in June 2002, following a memorandum of understanding (MoU) signed between the two companies in February this year. As per the MoU, Zee was to acquire 57 per cent in ETC in two stages for Rs 25 crore.
ETC’s bouquet of channels include ETC Music and ETC Punjabi. According to sources, ETC Music enjoys a market share of 35 per cent, as compared to Zee Music’s market share of 11 per cent. ETC Punjabi has a 34 per cent market share, while Zee’s Alpha Punjabi enjoys 24 per cent.
The deal gives Zee Telefilms access to ETC’s library of film rights, and will also enable it to exploit synergies between Zee Records and ETC Music.