Reliance spins off radio, ad business
Move designed to 'unlock shareholder value,' CEO saidHONG KONG – Reliance ADA Group, the giant Indian conglomerate that is a backer of DreamWorks, Friday spun off its Indian radio and outdoor advertising businesses.
Reliance Media World began trading on the Bombay Stock Exchange after shareholders in film production and exhibition group Reliance MediaWorks, previously known as Adlabs Films, were issued with shares in the demerged unit.
"The main purpose (of the listing) is of course to unlock shareholder value," said Tarun Katial, chief executive of Reliance Media World.
Commercial radio is a relatively new phenomenon in India and Reliance Media World, which has operations in 45 cities and claims to be the country's biggest radio broadcaster with a 22% market share, is currently losing money.
"We are looking to get an operational break-even this year and move to a net breakeven next year," said Katial.