Intel Capital is investing close to $49 million in the Hinduja-run IndusInd Media as it makes its forays into the brave world of broadband and Internet delivery. The players involved have gone if for a convoluted structure for the investment. Intel Capital is actually picking up a 49 per cent stake in Grant Investrade Pvt Ltd, a subsidiary of Hinduja Finance, which in turn is owned by the Hindujas. The remaining 51 per cent stake in Grant Investrade continues to stay with Hinduja Finance. Grant Investrade holds 3.5 percent in IndusInd Media & Communications Ltd (IMC) and will increase its holding to 6.7 percent by directing the investment from Intel into IMC. IMC operates under the brand name IN CableNet.

Intel Capital‘s ultimate total investment could be increased up to 20 percent in IMC. The investment is subject to Indian regulatory clearances.

"This investment reflects Intel‘s ongoing commitments to enable rapid deployment of high-speed Broadband internet access on a world wide basis", said Claude Leglise, Intel‘s Vice President and General Manager, Intel Home Products Group. "We have decided to participate in IN CableNet, India‘s largest Multi-Systems Operator (MSO), based on IN CableNet‘s unique market positioning, the company‘s vision, capabilities and our common objectives for the Indian broadband market segment".

IN CableNet is the only corporate effort in India, to build the information super highway, with the first 550 MHz cable system, being up-graded to Broadband network with fiber optic trunks. It offers high quality multi-channel transmission to more than four million Indian homes. It is classified amongst the 10 largest Cable TV Operators in the world in terms of subscribers. The network operates in nine cities with market leadership. In Mumbai, it claims to serve over 80 percent of the cable market and in the principal cities of Delhi, Bangalore, Hyderabad and Ahmedabad, it has a claimed over 60 percent of the Cable & Satellite market segments.

Ashok P. Hinduja, Chairman, Hinduja Finance, recently announced the Group‘s "TMT" strategy continuing to create value through the convergence of Technology, Media and Telecommunications. "We believe this relationship with Intel will add significant momentum to IN CableNet ‘s deployment plans of Broadband to strengthen the Group‘s leadership position in the convergence space."

"This investment is strategically important to Intel South Asia, it reflects the importance we place on developing Broadband infrastructure to address the growing demand for internet access in the Indian market," said Avtar Saini, Director of Intel South. "Over the past 15 months, we have invested in 15 companies in India. Today‘s announcement is the largest Foreign Direct Investment (FDI) in Indian Broadband infrastructure and reflects our commitment to invest in India‘s growing technology sector".

The IN CableNet success story has taken five years, said A. K. Das, Chairman, IndusInd Media & Communications. "With its market segment leadership position and its dynamic management, the company will now exponentially grow to expand operations on a nationwide basis," he said. "The IN CableNet infrastructure will be enhanced with state-of-the-art technology to make convergence a household reality. We are excited about this new association with Intel Capital, which will enable IN CableNet to continue to maintain the technological edge."

The results of the MTV and Indiatimes.com co-sponsored event, Youth Marketing Awards were announced yesterday. The criterion for the awards, which are divided into two sections: marketing and advertising, is that the campaign should be "out of the box". It shouldn‘t be something which you have seen before and it need not be popular.
The awards which were instituted by MTV, which calls itself the 360 degrees brand, three years ago have come a long way since then. They had some 50 entries last year and the entries have risen to almost 450 this year.

Shumit Roy, head of the Mumbai Ad Club Mumbai, is the convenor for these awards. According to him, "When I say out of the box I don‘t mean popular. I mean something which has never been done before. But it need not just be creative work. It should be appealing and groundbreaking both."

Print ad of the year:

Print ad of the decade:

TV ad of the year:

TV ad of the decade:

As part of its newly-found camaraderie with UTV (see earlier story: UTV eyes foreign skies; to retain Star TV as an investor after IPO), News Television India Ltd - Star TV India - is likely to distribute the UTV-run Vijay TV too. The channel recently telecast the Filmfare South Awards. The addition of Vijay TV - a Tamil channel - to its bag will mean Star TV will have immediately bought its entry into the south.

For long, Star TV has been trying to coerce the politically-linked and Kalanithi Maran-run Sun Network to become its ally. But it has not been successful. It is quite likely that Star TV will use UTV to launch channels in other south Indian languages such as Telugu, Malayalam and Kannada.

It had earlier contemplated a tieup with the R.Basu-run Broadcast Worldwide Ltd but its MoU with the company has not made any progress. Broadcast Worldwide is slated to launch its Tara Bengali language channel soon and no distribution agreements have been signed with Star TV as yet at the time of writing. News Corp is an investor in Broadcast Worldwide and the Tara bouquet will have Gujarat, Marathi, Bengali, and Punjabi language channels.

The Vijay TV distribution agreement will mean that Star TV will have a bouquet to match Zee TV‘s package in time to come.

Star TV India CEO Peter Mukerjea is expected to be coopted on the board of UTV in the near future to further cement the close-found relationship between the two companies. UTV is scheduled to go in for any IPO in the next couple of months.

United Television is getting ambitious these days. And How. The content provider is looking at multi dimensional fields like Internet, entertainment & production of TV series as well as movies to spread its tentacles.

As far as alliances are concerned, UTV said that it would retain Star TV as their strategic investors. According to a report in the Business Standard the company is looking at a wide range of activities that the broadcaster and UTV could do together.

For starters, Star TV, which holds a stake of 12% in the company, would act as a delivery vehicle for its bouquet of channels for international viewing. This would involve packaging as well as distribution of the bouquet.

The similar arrangement has been worked out between the two where UTV will provide the content as well as packaging for Star‘s proposed education and health channels.

Apart from the this the two will also storm the movie market by producing movies for the big as well as small screen. The movies made will be shown on the small screen through the Star satellites. The distribution of these movies for the big screen would be done by UTV.

And this is just one of its alliances. The channel has allied with various other channels and Internet companies for providing content.