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T-Series mulls music venture with Warner EMI Music

The music company plans to join hands with the global major to introduce international rock bands under the T-Series brand in India.

Super Cassettes Industries Limited or SCIL is planning to set up a separate joint venture company with Warner EMI Music for introducing international rock and pop bands in India under the T-Series brand.

In the first phase, both the companies are negotiating a licensing agreement whereby the international bands under Warner EMI Music would be released in India under the T-Series brand, SCIL managing director Bhushan Kumar informed.

"For the initial two years, we would be marketing international music here under the licensing agreement on royalty payment basis. After two years, we intend to convert this into a separate joint venture company, with equity investments by, both, SCIL and Warner EMI Music," he added.

Though, initially, both the firms are targeting the music world with this new venture, Kumar added, "Soon, we can also think of joint production of movies, provided both partners find it feasible.'' The new company would be independent of SCIL.

The venture, he said, is part of the SCIL group's thrust on its music business. "T-Series today controls around 65 per cent market in film music and Hindi pop albums. We are now planning to expand our horizons into ghazals and even English music. We have lined up some big artistes in the ghazal field, including Jagjit Singh. For the foray into English music, we are joining hands with Time-Warner.''

"The deal is expected to be finalised close on the heels of the completion of the global merger of US-based Time-Warner and UK's EMI Group.

EMI's most powerful stars include Rolling Stones, Spice Girls, and Radiohead, while Time-Warner has solo artistes and bands like Cher, Goo Goo Dolls, and Red Hot Chilli Peppers under its wings.

EMI group is merging its music business with Time-Warner in a 50-50 joint venture called Warner EMI Music. The group will be valued at about pounds 12 billion (about Rs 840 billion), and will be the world's largest music group with annual revenues of about pounds 4.9 billion (about 340 Rs billion).

Meanwhile, SCIL is also planning a major thrust on film production and has lined up several big names in the film industry for directing their films.

Kumar said that the company is also planning to become a major force in the consumer electronics sector. It has tied up with the $ 6-billion Sichuan Changhong Electric Company Limited of China for marketing digital video disc or DVD players and video compact disc or CD players under the T-Series-Changhong brand in India, he said.

The DVD player is priced at Rs 20,000, while the video compact disc or VCD player would sport a price tag of Rs 9,000.

The VCD player, he claimed, has all the features that are currently available in the Indian market. It also comes with FM karaoke cordless microphone for free.

SCIL, he said, is also launching old time Hindi movies on DVDs. In addition, the company is planning to increase the variety of music available on its cassettes as well as penetration in the market. "We intend to grow into a leadership position in home entertainment in the year 2000.''

In addition to the tie-up, the Rs 3-billion SCIL will continue to market indigenously produced audio systems and colour televisions under the existing T-Series brand. The company also has an existing tie-up with Hyundai Corporation for producing VCD players.

"We will continue to market these products directly through SCIL. They will complement the Changhong range and not compete with it,'' he said.

SCIL, he said, is also eyeing a foray into the home appliances market. ''We already have ceiling fans under the T-Series brand. And are planning to extend it to toasters and mixer grinders. We intend to make these products indigenously.''

UNI

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