After achieving the landmark of 4 million digital customers, the additional fund will be utilised to expand subscriber base to 10 million in FY2014-15
BestMediaInfo Bureau | Mumbai | April 3, 2014
With Siti Cable Network achieving the landmark of 4 million digital customers on March 31, 2014, its promoters have invested an additional Rs 243 crore to support the aggressive growth plan to achieve a subscriber base to 10 million in FY 2014-15.
As per the approval received from Foreign Investment Promotion Board (FIPB) in March 2013 to raise Rs 3,240 million from promoter entities, the company had already received the first tranche Rs 810 million in March 2013. The fresh funding is the balance tranche fund of Rs 2,430 million. With this, the total promoter shareholding rises to 72.82 per cent. The funds will be utilised primarily for business expansion and to partially reduce debt.
Subhash Chandra, Chairman, SIti Cable, said, âThe Indian television distribution industry is on the cusp of a high growth value phase as it marches towards the digitisation of balance phases of cable television in the country. With the change in leadership last year, Siti Cable has driven higher revenue and profitability through relentless focus on operational excellence despite uncertain environment. Our sustained investment in this sector will further accelerate the growth momentum and will serve the Digital Cable TV viewing needs of many more million Indians on Siti Cable network.â
VD Wadhwa, CEO of SITI Cable, added, âFor the wider digitisation rollout, the company needs to invest in upgrading its digital infrastructure further and enter into newer strategic markets. We plan to seed over 6 million set-top boxes in phase 3 & 4 markets through organic and inorganic growth. We believe that we are well poised to benefit from the ongoing digitisation implementation and ready to penetrate the market at a faster rate.â
Package-wise billing and collection has been initiated in phase 1 markets. The company estimates that by beginning of the next quarter, the package-wise billing and the collection will be in line. The company has made significant progress on subscriber-wise billing and collections in its phase 2 markets too.