[ZESTMedia] Interview with Sir Anthony O'Reilly

Mon, 19 Dec 2005 02:11:15 -0800

Op-Ed
 
 
THE MONDAY INTERVIEW: SIR ANTHONY O'REILLY
 
‘A newspaper business has to grow on the shoulders of smart marketing’
  Independent News & Media plc (INM) is a media organisation based in Dublin, Ireland with worldwide interests. Founded by media tycoon and former CEO of Heinz, Sir Anthony O’Reilly, the company owns over 170 print titles; these include a number of national newspapers in Ireland. In the UK, the company publishes The Independent and The Independent on Sunday. The group is the largest newspaper publisher in South Africa, owning 14 newspapers including The Star and Pretoria News, amongst others. The company owns a 40.3% stake in APN News and Media Limited, a large newspaper publisher in Australia and New Zealand, listed on the Australian Stock Exchange. It also holds stakes in the Unison ISP and the iTouch electronic payments and premium rate telecom operator.
Mr O’ Reilly was on a private visit to India recently. In a freewheeling interview with Ashish Sinha, he explained the company’s logic behind picking up 26% stake in Jagran Prakashan, the company behind the Hindi newspaper, Dainik Jagran. He also shared INM’s plans of launching a facsimile edition of UK’s The Independent in India by mid-2006. Excerpts:
What were your reasons for choosing the Jagran group for investment?
We have known the Gupta family of Dainik Jagran for over six years. It’s a family tie-up. So when they approached us for investments, I did not think twice. The Dainik Jagran group was a family-run business and investments in family-run business houses are always a risk. But going by the stronghold of the Hindi newspaper and its proven track record, it’s a good investment for us. We want to grow in India with them. By early next year, Jagran will go public and we are with them right through each and every step of the way.
Can we expect more investments from INM in Indian media?
No, not really. We are committed towards our relationship with the Jagran group. Any further scope of spreading our business interest will be in association with it. I know that the Indian media, both print and television, along with Bollywood are thriving sectors. But they do not interest us businesswise.
Hypothetically, if the 26% FDI ceiling in the Indian print media is extended further, will you be interested in increasing your stake then?
Of course! We have been in the business of running newspapers around the world for over three decades. We understand the importance and growth of this market. In India, Hindi newspapers have been expanding faster than any other language, including English. So having a strong ally in the Jagran group makes sense for us. In different countries, we have a varied percentage of stakeholding in newspapers. The partnership and growth from the market matters to us more than anything.
With the government relaxing rules for bringing in the facsimile editions of foreign publications, will INM be interested in bringing in any of its newspapers?
Yes, we are in the final stages of our plans to bring in The Independent from UK. We believe it has a strong niche market in India. And we plan to launch the paper by the middle of next year. The association will be through the Jagran group and we might print 8,000-10,000 copies. We will price it aggressively and make it available in the metro cities and embassies.
Having owned newspapers around the world, what is your opinion about the growth potential of the Indian newspaper industry?
There is potential here and that is why we are here. But I strongly feel that some gaps have to be filled. Firstly, the quality of newsprint at cheaper rates is an issue here. That needs to be addressed anywhere for faster growth. Secondly, there is a further need to bring in better technology in printing. But most importantly, every newspaper business has to grow on the shoulders of smart marketing and advertising-sales people. All round improvement in these areas will show definite results, and that is the learning we carry forward to every market.
What about plans of investing in the private FM radio business, a sector opened recently? Do Bollywood companies interest you for investment purposes?
We are keenly watching the developments in the FM radio market. It’s really a start-up phase. But any further expansion of our business interests in India will be executed through the Jagran group. As for Bollywood, we like to watch some of the leading ladies in your movies back in Ireland. But businesswise, nothing is on the cards.
Any interest in strategic investments in advertising agencies in India? WPP has been increasing its presence here, any plans to give them some competition?
Martin (Sorrell) and I are friends. Once he had offered me a post at WPP. But that’s that. No investment in the business of advertising agencies here or anywhere. It’s too complicated for us. WPP is our client in several countries and we do not want to disturb our relationship with Martin (laughs). But outdoor advertising has attracted our attention in Australia and New Zealand. It is a growing and very effective medium for attracting attention. We believe some amount of work on trains and buses is being done in Mumbai as well. This area can be explored further in India...but not at the moment.
 
 

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