THE RAMOJI GROUP
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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.
hen Ramoji Rao saw the tremendous success of Hindi
movies, with heavy investments, he planned to enter the film industry, but with
creative and thought-provoking low-budget movies.
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Ramoji Rao explained, "Convictions make you do things.
With mega-budgets and big names, Mumbai could work magic. But I thought, with
some creative effort, low-budget films could be made." The movies from Ushokiron Movies seemed successful, appealing to all age
groups. There were family dramas, comedies, love stories and social movies to
appeal to all kinds of movie-goers.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. |
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QUESTIONS FOR DISCUSSION:
1. Analysts felt that, with excellent business acumen, sharp insight and an
eye for spotting out opportunities, Ramoji Rao became a successful entrepreneur.
Do you think the Group's diversification into unrelated areas is a reflection of
poor entrepreneurship on part of Ramoji Rao.
2. By 2001, the Ramoji Group had diversified into different businesses. Analysts
felt that one of the main reasons for Ramoji Rao's success was the synergy
between his different ventures. What were the synergies between the different
businesses?
ADDITIONAL READINGS & REFERENCES:
1. Hollywood at home, The Week, October 25, 1998.
2. Datta Kausik, Competition set to hot up among Bengali Channels, Business
Standard, April 13, 2000.
3. Eenadu TV moves to Kannadiga houses, Financial Express, December 6, 2000.
4. Kohli Vanita, Is it time for regulation?, Business World, January 2001.
5. Bhushan Nyay, Hollywood goes Hyderabad, www.indiatimes.com, May 2001.
6. www.eenadu.com.
7. www.ramojifilmcity.com.
8. www.margadarsiapparels.com.
9. www.priyafoods.com.
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