MY FM expands into Maharashtra with Rs 24 crore investment
DB Corp has expanded its radio footprint as it enters Maharashtra by spending nearly Rs 24 crore for 9 new frequencies. It has now extended its reach to 31 cities across North and West India
MY FM, the radio brand of DB Corp, continued its focus on Tier II and Tier III cities in the first stage of the Phase III auctions by acquiring 14 new frequencies at a collective price of around Rs 32 crore. Interestingly, this time around the focus has been in the state of Maharashtra, where it has acquired 9 new frequencies at a price of just over Rs 24 crore. These include Ahmednagar, Dhule, Akola, Aurangabad, Jalgaon, Nanded, Nasik, Sangli, and Sholapur.
“Maharashtra is new for us. Music preferences change from city to city, so we will learn what works in the state and adapt. The content is largely the same as we are a customer-centric company,” said Harish Bhatia, CEO of MY FM.
Apart from Maharashtra, the company wanted to expand its footprint in all states where it currently has operations (MY FM operates in 17 cities, mainly in the north). The investment in Maharashtra, now gives it a firm hold in the non-metro market in western India.
“We did not want to place all our bets on places where there is no shareholder or associate value. We want to be where we can create profit,” he told us, further adding that the aim is to become profitable within 4-5 years of starting operations as per IRR.
Accepting the challenges ahead, especially considering the heavy investments made by a number of players in the auctions, Bhatia was still optimistic that with changes in the economy, the radio industry would see profits in the coming years.
“We will see overall net growth after only certain period of time but I expect growth in the next 2-3 years. The market will grow and this will be beneficial for us,” he said.
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