Mumbai, Mar 18: The scope for creating multi-media conglomerates through mergers and acquisitions (MA) in India is very much restricted under the present scenario where the value chain of the industry is yet to be corporatised, according to a recent study.

''One of the factors responsible is the lack of corporatisation in sectors such as film production,'' said the report prepared by chartered accountancy firm Amarchand Mangaldas commissioned by the Federation of India Chambers of Commerce and Industry (FICCI).
The problem is further compounded by restrictions on media cross holding and lack of clarity in government policy measures, it said.
For example, while Star TV has taken a 26 per cent stake in Hathway Cable Network, Siticable is a 100 per cent subsidiary of Zee TV. These holdings were against the norms in the communication bill 2000, which specifies a 20 per cent cap on equity stake in cross holdings that a broadcaster or a networking company can have in Direct To Home (DTH) services.
However, the study said that there were certain developments, mainly in the film exhibition sector, where players like Imax become organised through public listing and added acquisition of theatres by these companies can be expected in near future.


Bureau Report