DR J.K. JAIN'S FUTURE GAMEPLAN

The short and squat Dr J.K. Jain has been known in the Indian media business as the maverick-doctor-turned-politician who started out running a magazine, then moved into creating Video-on-Wheels, a venture which takes marketing promotions to India's deep interiors, launched Jain Studios, and finally flagged off a satellite television channel. The channel's life-span in its first avatar was relatively short, just a couple of years, and then it was wound-up. "The foreign backers ran out of patience and there were no funds forthcoming," says the former BJP member of Parliament who made many a fellow BJP member see red when he ran soft-porn movies on his channel before he shut it down in 1996.

Jain is back once again. Actually, he has been at it for the past six months, trying to make a place for himself in the television sun with a 24-hour news and current affairs channel which channel made its debut curiously before the elections, almost as if to give a fillip to the BJP's fortunes at the hustings. time. And the critics went at it hammer and tongs.

Re-launched just before the general elections were held in India the critics wrote it off as an election stunt for the benefit of the BJP, but Dr. Jain this time looks serious, at least more serious than last time. Says he, "I have proved critics wrong in the past too and this time round too I will do so. If they (the critics) see my business plans, then they would stop carping against me."

As an indication to his seriousness, Dr. Jain recently announced the launch of business programmes on the channel, though with a touch which is so reminiscent of his party ideologies. The business programmes, started on Diwali day (the festival of lights - in November), featured eminent astrologers along with financial market experts. Both the parties used their own skills to predict future of economy and indian bourses.

Dwelling on the decision to feature astrologers along with financial market experts on business programmes, Dr. Jain explained, "It (astrological predictions) is the demand of the public. We cannot ignore that. It is not our intention to couple astrology with economy but it is part of Indian life and beliefs. "

To many this may sound like mixing religious beliefs with business, but be rest assured Dr. Jain is one of the shrewdest businessmen stalking the corridors of power in Delhi. His Jain Studios Ltd (JSL), the broadcasting company for Jain TV channel, was written off many years back when a novel concept of campaigning during elections was introduced by JSL. But the video-on-wheels (where mobile video vans screened election-related films in the interior of India) did catch the fancy of the politicians and electorates.

So you cannot deny that Dr. Jain doesn't resort to innovations. Rather, he claims, he has pioneered many concepts which other satellite channels resort to now. "When we started the concept of exit polls much before in the mid-90s when nobody had heard of it. Now every channel seem to swear by it," the rotund Dr. Jain says.

If people think, he cannot be convincing, then they need to think again. He has managed to convince the Unit Trust of India to invest about Rs 100 million in the form of preferential shares with an option to convert the same into equity at a future date in JSL for his latest project which embraces the idea of Internet-to-TV. The Industrial bank of India too has issued a letter of intent to contribute a sum of Rs 24 crore to his rejuvenated project.

"We have settled the account and repaid in full the working capital loan of oriental bank of Commerce to the tune of Rs 2.4 crore. So, today we are a debt-free company,"

So, what are the big plans of JSL this time round ?

The company will undertake setting up software technology parks, earth stations gateways, broadcasting and multicasting projects related to radio or TV whether through satellite or terrestrially or otherwise of voice, data as permitted by government/regulatory authorities in any part of the country to promote software exports, manpower exports.

The IT-related projects are:
*Setting up gateway earth station at Noida in the state of Uttar Pradesh.
*Internet services to provide dial up and leased access, value-added and content services.
*Satellite home shopping TV channel.

The company has already obtained ISP licence. Says dr. Jain, "The 12 acre campus in the Greater Noida Area is proposed to be developed into a unique temple of technology where we propose to deploy modern and sophisticated tools of information technology with an objective to fight the poverty and backwardness and to accelerate the pace of development of our company and the nation too."

Sounds like a political speech, but once a politician always a politician, as they in India. But the fact is JSL has invested Rs 40 million in Noida Software Technology Park Ltd by subscribing to Rs 4 million equity shares with a face value of Rs 10 each for setting up a software tech park in the neighbourhood of JSL's proposed gateway earth station.

Asked why did UTI agree to invest in Dr. Jain's venture, a senior executive of UTI, one of the biggest financial institutions in India, revealed: "As an FI we do invest in many projects, some which are high risk ones too. But Dr. Jain's proposal was studied by us thoroughly and we realised its worth investing as media and IT ventures are on the upswing in the country."

Though the business of news programming proves expensive for most broadcasters (ask Star TV about Star News and they will tell you), Dr. Jain has found a synergy between TV and IT. Detailing the expansion plans Dr. Jain said that a daily seven-hour business news on all trading days would cater to the growing information market for economic events, corporate developments and ups and downs of the capital market. "Its an attempt to match the corporate India of the next millenium," he adds.

The about-to-be-started business news block will also carry a review of the US and European markets, mandi reports, interviews, bulletins and panel discussions.

The integrated project encompasses broadcasting, Internet and telephony. The initial investments are to the tune of Rs 50 crore. JSL has already leased a transponder on Thaicom-3 for 5 years at the rate of $ 1.4 million/year. As per the business plans drawn up, JSL's total revenue by 2003 has been projected to be Rs 267.1 million with ad sales growing at 100 per cent CAGR over a period of three years. The profit after tax is projected to increase from Rs 76 million in 2000-1 to Rs 634 million in 2002-3.

Having put the ghost of adult films behind him, Dr. Jain with his Jain TV looks more serious, though the team that he has gathered round himself can certainly do with some spring cleaning.

Article appeared in a local newspaper in late 1997