Balaji Telefilms Ltd (BTL) on Wednesday announced a streamlining exercise for its group structure to combine similar business interests, improve allocation of capital, enhance operational efficiencies and optimise cash flow.
As part of the exercise, the film production undertaking of Balaji Motion Pictures Ltd (BMPL) will be demerged into BTL. The move will enable BTL to consolidate the content production business. After the demerger, BMPL will focus on the film distribution business. Simultaneously, BOLT Media Ltd will be amalgamated with BTL. BOLT is in a similar line of business as BTL and its amalgamation with BTL will help in focussed and effective utilisation of the production activities.
Both BMPL and BOLT are wholly owned subsidiaries of BTL. That is the implementation of the composite scheme of arrangement and amalgamation shall not have an impact on the share capital of BTL. However, the share capital of BMPL will reduce after the implementation of the scheme.
Axis Capital is acting as advisor and Shardul Amarchand Mangaldas & Co, Advocates & Solicitors, is acting as the legal advisor to BTL.
BTL Group CEO Sameer Nair said, "We are committed to improving margins and profitability and consolidation of our operations is a step in that direction. This will also ensure more efficient use of senior management's bandwidth, thereby allowing more time to focus on ALT Digital, our digital foray, which is set to redefine the entertainment viewing experience of Indians in India and across the globe."
BTL Joint Managing Director Ekta Kapoor added, "The scheme of demerger of BMPL and merger of BOLT will help us to focus more efficiently on our content creation capabilities across the genres and formats."
The scheme will help in achieving multiple goals. It is expected to enhance efficiencies and combine similar business interests, optimise operational synergies resulting in focused management and efficient administration and help streamline group structure. It is expected to help in consolidation of the business operations. The process is expected to result in contributing to the overall growth prospects of BTL. Lastly, the scheme would enable pooling of resources of BTL, BMPL and BOLT resulting in more productive utilisation of resources, cost and operational efficiencies which would be beneficial to all the stakeholders.