Saregama India Ltd Company Summary

Saregama India Ltd Summary

Saregama India Ltd (SIL) (earlier known as The Gramophone Company of India) was incorporated in August 13th, 1946 and taken over by the RPG Group in 1985 from EMI, UK. The Company is currently managed by R P Goenka, Chairman. It is engaged in manufacturing and sale of Music storage device viz. Carvaan, Music Card, Audio Compact Discs, Digital Versatile Discs and dealing with related music rights. It is also engaged in production and sale/ telecast/ broadcast of films/ TV Serials, pre-recorded programmes and dealing in film rights. The Company is the most reputed audio entertainment company in Indian subcontinent. It owns nearly 2,00,000 tracks created over the last number of decades. It is estimated to own about 50% of the music ever recorded in India. It has been intimately associated with the development of Indian music from the time the first recording was made on Indian soil in 1903; the company also recorded the first song in an Indian film - Alam Ara in 1931.The companys achievement covers twelve languages spread across eight musical categories- new Hindi films, old Hindi films, regional films, ghazals, devotional classical, Indianpop & International.The companys products are sold under the brand name of HMV and Saregama. The international market managed by Saregama Plc- UK which is responsible for sales in USA, Canada, UK & Europe & RPG Global Music -Mauritius responsible for the rest of the international teritories.To de-layer the companys structure, two of its subsidiaries, Gramco Music Publishing & RPG Music International were merged with it. The company restructred its operation by forming business groups centres of excellence & support groups. In August 2000, it launched a portal, HamaraCD.com, to mark the beginning of the use of digital downloading. Saregama has also picked up a 42.85 per cent stake in the RPG controlled music retail chain, MusicWorld. The company has acquired four reputed South Indian music lables - Sangeetha, Sargam, Pyramid and Sea Records. With the acquisition of these lables it has complete dominance in the southern regional segment. Also it has entered into contract to provide content to a radio station.In Jan. 2001, the company has decided to merge its UK-based subsidiary Saregama Plc and the Mauritius-based RPG Global Music(RGML). The company has a 100% stake in RPG Global and 72% in Saregama Plc. The merger will bring the Gulf, African and Far Eastern markets within the arena of Saregama Plcs operations. The company ventured into production of Television Software as it is a growing segment in Entertainment Industry. By taking this venture it has got slots in Sun TV for producing Tamil Serials and it also plans to start serials in Doordarshan very soon. The installed capacity of Pre-recorded Cassettes was increased to 70000000 Pcs during 2002-03.In June 2003, the company has transferred its Television Software Division to its wholly owned subsidiary Saregama Films Ltd.The company has expanded the installed capacity of Converted Compact Discs during the year 2004 by 88000(Nos) and with this expansion,the total capacity has risen to 118000(Nos).The Scheme of Amalgamation between Company and Saregama Films Limited, the wholly owned subsidiary, has been approved by the Honble High Court at Calcutta by its Order dated 28th November, 200, which took place effective from 31 st March, 2007.During the year 2007-08, Company acquired 50,000 Equity shares of Rs.10 each representing 100% of share capital of Kolkata Metro Networks Limited (KMNL) at a price of Rs.10 per share.In 2008, Company signed an agreement with Regency Media Pry Ltd., Australia, a leading manufacturer of optical media, for investingin a joint venture company in India, Saregama Regency Optimedia Private Limited, for manufacture of Compact Discs (CDs), View Compact Discs (VCDs), etc. It acquired 10,000 equity shares of Rs.10/- each in RPG Publications Pvt. Ltd. for a consideration of Rs. 1,00,000/- on 15th May, 2008, and RPG Publications became a wholly-owned subsidiary of the Company.During the year 2011-12, the Company ventured into niche and lucrative business vertical for production, distribution andmarketing of audio and audio-visual content for children educational entertainment products including Rumble-n-Tumble Play time by Preeti Sagar, Sweet Values, etc. In 2016, Company launched two prestigious applications offering Classical Music and Devotional Music in their Music Audio Business. It acquired new film music of Hindi and Tamil films in 2017. The Company invested in 100% share capital of Saregama FZE, comprising of 100 shares of AED 1,000 each aggregating to AED 1,00,000 and consequently became Wholly Owned Subsidiary of the Company in 2019.In 2022, the Company acquired worldwide audio & video rights of 436 new film and non-film songs, in perpetuity, with their monetization kick-starting immediately via music streaming platforms, music video licensing, social media platforms etc. It acquired over 1500 song catalogue from Mango Music, which comprises songs of over 280 Telugu films released. The Board of Directors of the Company in its meeting held on 30th March, 2022, approved the Scheme of Arrangement by demerging its E-Commerce Distribution Business into Digidrive Distributors Limited, which provides for demerger, transfer and vesting of the Demerged Undertaking from the Company into Resulting Company, on a going concern basis, and in consideration, Resulting Company shall issue its equity shares to equity shareholders of the Company in same proportion of their existing holding in the Company and the existing share capital of the Resulting Company held by Company will be reduced. Pursuant to Scheme, the equity shares of Resulting Company will be listed on BSE Limited and the National Stock Exchange of India Limited.