The Rs12,900 crore Bajaj Group, which is present in 26 businesses from sugar to scooters, has just identified a 27th area it wants to be in—entertainment. BEAMS, short for Bajaj Entertainment, Art, Music, & Sports, is a division of Bajaj International Pvt. Ltd (BIPL), and it is the latest effort by an established business group to enter a business that touches millions of Indians.
BEAMS will function more like an agent than a production house, according to details provided by Anant Bajaj, director, BIPL (Anant is the son of Shekar Bajaj who runs Bajaj Electricals; Shekar is the brother of Rahul Bajaj, the chairman of Bajaj Auto and the patriarch of the Bajaj Group).
It will manage musicians, actresses, artists, and even athletes and match them with opportunities in entertainment.
Anant Bajaj said the company aims to use a corporate approach and leverage its relationships to bring some science into the booming business of entertainment. Bajaj is set to announce the launch of BEAMS on 30 March.
The launch will be accompanied by a performance by a Polish band. It may not seem such an odd choice when you know that the band is BEAMS’ first client.
Bajaj, who said the company would find talent and groom it for stardom, expects the company to be profitable in a year.
BIPL is a trading firm focused on electronics and lighting equipment. It shares no synergies with BEAMS but will support the new business which will share its infrastructure and management.
Earlier, in 2003, the Aditya Birla Group had entered the business of entertainment by promoting production house Applause Entertainment Pvt. Ltd. In 2005, the Reliance Anil D. Ambani Group acquired a majority stake in production, distribution and exhibition firm Adlabs Films.
Girish Swar, entertainment and media analyst at brokerage ASK Raymond James Securities India Pvt. Ltd, said companies are entering the sector because they see the business growing, and because they are looking to diversify risk.
Bajaj did not divulge further details about BEAMS, but said there were several other opportunities to make money in the entertainment sector. “The two main themes are leveraging the Bajaj brand and regularizing the industry,” he added.