Here is what Kushagra Nayan Bajaj, joint managing director of Bajaj Hindusthan, has to say in his testimonial: “To my mind, the most important benefit of our association with ‘Times Private Treaties’ is the fact that it has enabled the two organizations transcend the ‘us versus them’ kind of feeling and perspective that inevitably develops in the interface between a business enterprise and a media organization...The key contribution that ‘Times Private Treaties’ has made is that it has enabled both sides rise above their narrow professional points of view and look at issues from a larger social perspective. It is also helping create, strengthen and reinforce a climate of mutual trust.”
Rajshekhar says the goal of BCCL’s treaties is to find companies that otherwise wouldn’t be able to spend a lot of money on brand building in their early stages.
“We look for companies that are in a growth phase,” he says. “They are either expanding or scaling up their business and hence, need to build consumer reach and brand pull, but are squeezed for cash to invest in their brand building and advertising. There are also some that need to position themselves to potential stakeholders or investors because they wish to raise capital from the markets either through strategic partnerships or through IPOs (initial public offerings).”
BCCL’s website says the company looks for “sectors that currently do not advertise so that we can create first-mover advantage for our partners.”
Because BCCL funds companies that normally don’t advertise or are just gearing up to advertise, and then negotiates long-term advertising deals, the company’s treaties help reduce the overall corporate tax liability on its own profits while ensuring a steady stream of new ad revenue for its media outlets, creating a circular flow of money as well as a big upside when the value of the company’s stake soars, as in the case of, say, Future Group, a rapidly expanding conglomerate.
Earl J. Wilkinson, executive director, International Newspaper Marketing Association, a trade group, says he has pitched the BCCL model to European publishers.
“I find private treaties to be a clever way of creating a win-win for the up and coming companies and established media players,” he says. “It’s a great example of creating opportunities where none, traditionally speaking, exist.”
Janmabhoomi’s Vyas, though, is convinced that private treaties will do an irreparable damage to the media industry.
“The Press Council of India will definitely take an action in the case, provided somebody lodges a complaint with us,” he says. “We cannot take a suo motu action against anybody.”
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