Bennett, Coleman and Co Ltd (BCCL) is entering the public relations business in partnership with Mumbai-based PR consultancy and advertising group, Adfactors PR Pvt Ltd, says a Mint report.
The new entity, Tatva Public Relations Pvt Ltd, will be a 33-67 joint venture, with the Adfactors group holding the majority stake. Tatva will manage and build the public image of firms in which BCCL holds equity stakes.
Some details:
Tatva Public Relations, incorporated with an authorized capital of Rs1 crore, is expected to start functioning from fiscal 2009, beginning April.
According to a memorandum of association signed between the two partners and filed with the Registrar of Companies, the objective of Tatva is “to carry on the business of consultancy in India and abroad in the field of public relations and…to manage and build up public image and reputation of firms, bodies corporate, autonomous corporations and multinational conglomerates, international governments, state and Central governments and other institutions and of any other person, Indian or foreign.”
BCCL started picking up equity stakes in companies in 2004 through its arm, Private Treaties. The deals are similar to private equity deals, but typically, without any direct monetary transactions between two parties. Instead, it involves taking an equity stake in a publicly traded or private company for promoting the “partner” through long-term advertising and other publicity deals using BCCL’s many media vehicles.
The value of BCCL’s equity stake through private treaties in 36 publicly traded companies on the Bombay Stock Exchange, according to the shareholding pattern disclosed at end-September, amounts to Rs1,547 crore, calculated on Friday’s closing price of these stocks. The company owns stakes in scores of closely held companies as described in a 15 January Mint story.
