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Balaji Telefilms streamlining group structure to consolidate operations
MUMBAI: Balaji Telefilms Ltd (BTL) is streamlining its group structure to combine similar business interests, improve allocation of capital, enhance operational efficiencies and optimise cash flows.
The film production undertaking of Balaji Motion Pictures Ltd (BMPL) is being demerged into BTL. The move will enable BTL to consolidate the content production business. Post demerger, BMPL will focus on the film distribution business.
As part of the new structure, Bolt Media Ltd will be amalgamated with BTL. BOLT is in a similar line of business as BTL and its amalgamation with BTL will help in focussed and effective utilisation of the production activities.
Both BMPL and Bolt are wholly owned subsidiaries of BTL. Hence, the implementation of the composite scheme of arrangement and amalgamation shall not affect the share capital of BTL. However, the share capital of BMPL will reduce after the implementation of the scheme.
The scheme has got the nod of the board of directors of BTL. Said BTL joint managing director Ekta Kapoor, “The scheme of demerger of BMPL and merger of Bolt will help us to focus more efficiently on our content creation capabilities across the genres and formats.”
The scheme will help in achieving the following:
> Streamlining of Group structure: The scheme is expected to enhance efficiencies and combine similar business interests, optimise operational synergies resulting in focused management and efficient administration.
> Consolidation of the business operations: The scheme is expected to result in economies of scale, improving allocation of capital, operational efficiency, integration of processes and optimising cash flows, thus contributing to the overall growth prospects of BTL.
> Reduction in costs: The scheme is expected to enable pooling of resources of BTL, BMPL and BOLT resulting in more productive utilisation of resources, cost and operational efficiencies which would be beneficial to all the stakeholders.
Said BTL Group CEO Sameer Nair, “We are committed to improving margins and profitability and consolidation of our operations is a step in that direction. This will also ensure more efficient use of senior management’s bandwidth, thereby allowing more time to focus on ALT Digital, our digital foray, which is set to redefine the entertainment viewing experience of Indians in India and across the globe.”
Axis Capital is acting as advisor and Shardul Amarchand Mangaldas & Co, Advocates & Solicitors is acting as legal advisor to BTL.