The Ramoji Group

Ramoji Rao – Spotting New Opportunities Contd...

Apart from ETV-Bangla, ETV-Marathi, and ETV-Kannada, ETV launched the first Urdu channel in India, ETV-Urdu in June 2001. By the end of 2001, Eenadu was planning to launch channels in two other niche markets – Gujarati¹² and Oriya¹³. Said an Eenadu official, "The aim of the network is to build a brand and cater to niche audiences in all major regional languages." Analysts felt that an important characteristic of the Ramoji Group was that it had always been a family-run organization. The flagship company of the group, Margadarsi Chit Funds, was managed by one of Ramoji Rao's daughters-in-law. Another daughter-in-law looked after the hotels run by the Dolphin Hotels chain in the Film City.

The Road Ahead

From one company in 1962, the Ramoji Group became a Rs 15 billion business empire with presence in many industries by 2001. For future growth, Ramoji Rao planned to concentrate on the group's core businesses like the print media, satellite television and films. As part of the future plan, Ramoji Rao announced investments in film industry. In 2001, Eenadu TV planned a Rs.600 million upgradation of its earth station. The project included a Rs.180 million project to automate its newsroom. The group also planned to launch newspapers in other south Indian languages. As a first step, Ramoji Rao planned a Kannada daily for Karnataka to be launched by 2002. His plans included making his Film City the best not only in India but also in the world.

He described the City as "The Last Milestone." He said, "Our immediate concern is to make it the best… It is an open ended project where facilities will continually be upgraded." The group was also focussing on its new venture – Margadarsi Apparels – to make it the best in the textile retailing industry.

Exhibits

Exhibit I: The Ramoji Group
Exhibit II: Post-Production Facilities at Ramoji Film City

12] One of the 18 official languages in India.

13] One of the 18 official languages in India.

Case Details

Case Code : LDEN001
Themes: Differentiation
Case Length : 8 Pages
Period : 1992-2002
Organization : Varied
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Media and Entertainment

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