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Rediff News  All News  » Business » Hinduja TMT may merge media units

Hinduja TMT may merge media units

July 28, 2003 11:46 IST

Hinduja TMT is planning to merge three of its media companies InNetwork Entertainment, IndusInd Entertainment and Cable Video India.

The company is also planning to divest its 30 per cent stake in cellular telephony company Fascel.

"The legal process for completion of the merger is underway. We are also talking to a number of prospective investors to offloading our stake in Fascel. It will not be appropriate to disclose any names at this stage," S Solomon Raj, vice-chairman of Hinduja TMT, said.

The group is now focusing on the information technology sector to drive growth. The Hinduja group jumped on to the IT bandwagon in the early 90s through the creation of Ashok Leyland Information Technology, a wholly-owned subsidiary of the group flagship Ashok Leyland.

Later, ALIT was merged with Hinduja Finance Corporation to form Hinduja TMT.

Hinduja TMT has a number of subsidiaries in the media and entertainment business. It is now trying to rationalise these to impart greater focus.

"The business model of the company is to focus on ITES and build the rest of the IT business around this," R Mohan, president and CEO of the IT division, said.

The BPO business has five international clients -- four in the United States and one in the United Kingdom.

BS Corporate Bureau in Mumbai