Top Story

e4m_logo.png

Home >> International >> Article

Walt Disney proposal differed by 2 weeks

23-November-2001
Font Size   16
Walt Disney proposal differed by 2 weeks

Walt Disney’s proposal to set up a wholly owned subsidiary in India for operating its pay channel has been deferred by two weeks by the Foreign Investment Promotion Board (FIPB). According to industry sources, ministry of information and broadcasting as well as the department of industrial policy and promotion (DIPP) is examining the proposal.

Disney has proposed to set up the new subsidiary for its pay channel (TWC) while it has an existing joint venture with the KK Modi group for distributing Disney television software to other free-to-air channels. The Modis have opposed the proposal.

As per a policy guideline (popularly known as Press Note 18), a foreign firm is not permitted to set up a separate subsidiary if it has an existing joint venture in the same line of business.

In case the JV has been terminated, there has to be a cooling off period of at least six months.

On previous occasions, the Indian joint venture partners have been asked to give no-objection certificates when their foreign collaborators wanted to set up another subsidiary.

In Disney's case too, the KK Modi group has an existing joint venture. In its application to the government, Walt Disney has claimed that the Disney group has signed a non-binding MoU with the Modi group.

Since the project was not feasible, it has decided not to proceed with the project and that neither party will have any claims against the others if the project did not proceed.

Walt Disney also intends to launch TDC as a pay channel. So the proposed activity does not clash with the existing activities of the JV with the Modis which has a license to distribute Disney programmes on free-to-air TV until late 2002.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

The campaign, featuring brand ambassador Farhan Akhtar, exhorts consumers to showcase their achievements through the walls of their homes.

We list a few important stories that you may have missed in the week gone by

The campaign takes the narrative forward to persuade prospective investors to invest in mutual funds