The war has already begun. With Hindustan Times planning to launch its edition in Mumbai soon, The Times of India says it will beef up its operations in the city.
However, Bennett, Coleman & Co's Managing Director Vineet Jain said: "We wish Hindustan Times had bigger money to fight the Mumbai battle. It is a huge market."
Jain said the Rs 125 crore (Rs 1.25 billion) that Hindustan Times will get for selling 20 per cent of its stake to the Australian company AMP was not sufficient to take on The Times of India in Mumbai.
"The amount is too small for the purpose," he said.
Besides, Jain said Hindustan Times had been under-valued. "HT's value is much higher than what its investors are willing to pay. If we were to pick up a stake in the paper, we would have paid a higher price," he said.
However, he added that The Times of India was a proponent of competition as it expanded the market.
"The HT versus Times battle in Delhi has resulted in unprecedented increase in newspaper circulation in the city," he added.
Senior HT executives said that the paper would not be launched in Mumbai in a hurry.
"First we require various government approvals on foreign investment. Also, no research has been conducted to figure out the kind of product Mumbai readers are looking for," a senior executive said.
However, HT sources admitted that the paper would go into the market with invitation pricing. "It is too early to say whether it will be Re 1 or Rs 1.50," the sources said.
HT sources admitted that fighting The Times of India in Mumbai would be a challenge and the war might need about Rs 300-400 crore (Rs 3-4 billion).
Ravi Kiran, managing director (west & south) of the media buying company Starcom agreed that taking on TOI in Mumbai would be an uphill task for HT.
"Newspaper reading habits are not easy to change. Even though HT may come with a price advantage, it will be a big battle," he said.
Advertising agencies estimate the current size of print media advertising in Mumbai alone to be between Rs 450 and Rs 600 crore (Rs 6 billion).
Of this, almost 70 per cent is cornered by the English print media.
However, a print media marketer said, HT needed to go to Mumbai not for expansion but for survival.
"The Times of India mops up huge advertising money by bundling its Delhi, Mumbai and Bangalore editions. HT loses out on the opportunity," he pointed out.
