Mumbai: Reliance Broadcast Network Ltd, earlier called Reliance Media World, said its out-of-home unit has bid for a 22-year contract in Delhi, its second in the capital, for installing street amenities.
The contract will include creating structures ranging from police booths, public toilets, vending kiosks, information panels, benches, dustbins, auto prepaid booth and free standing panels ahead of the Commonwealth Games.
“The outcome is expected in the next 10 days. This is the second such contract we have bid for in Delhi,” Rabe Iyer, business head, allied business, told Reuters but did not give any financial details. The Anil Dhirubhai Ambani Group firm on Wednesday won a similar contract from the Delhi Tourism and Transportation Development Corp for installing street amenities. Financial details of this contract were also not available.
“We will invest Rs10 crore in the next 2-3 months in building up the amenities..this is on build-operate-transfer basis,” Iyer said.
Reliance Broadcast Network has interests in radio with its marquee brand Big FM and has other allied businesses such as out-of-home, experimental marketing and mobile and online business.
“We expect our allied businesses to grow to 70% of our revenues in the next 4-5 years,” Tarun Katiyal, chief executive officer, said.
The firm currently gets 80% of its revenues from the radio business and the rest from its allied businesses.
Reliance Broadcast also plans to foray into television and has recently signed a joint venture with US based CBS Corp to launch English and regional language general entertainment channels in India.
The firm also said it plans to bid during the Indian government’s phase 3 roll-out of radio frequencies.
“From what we see the IB minister has indicated it will happen soon..it will open up about 1,000 frequencies and we will bid for it when the bidding starts,” he said.
Radio operators are expecting additional allocation of frequencies and opening up of current affairs and news content to private radio operators. At 12.32 p.m., shares of the firm were down 1.25% at Rs79.25 in a flat Mumbai market.