1. INDIA- The Content Distribution Market …
Focus on Indian Film Industry…..

2. Indian Demographics- Population & Income
Over 55% young population
Of under 30 years!!

3. Media and Entertainment – The India story

4. Media and Entertainment – The India story

5. Update on Indian Film Industry
The Indian film industry produces around 1,050 films and sells around 4 billion movie tickets, each year.
In 2008, the size of the Indian film industry was estimated to be USD 2.58 billion.
While the domestic box office collections contributed as much as 60%, the home entertainment contributed a mere 6% to the total revenues, which is significantly lower as compared to developed countries.
US Example:
There were 610 film releases and a total of 1.4 billion tickets sold in 2008.
In the same year, the revenues from the film industry were around USD35 billion, of which the domestic box office contributed 28% and the largest share of 54% came from the home entertainment segment.(E&Y,Apr-2009)

6. Key Catalysts of Growth- Movies at Home

7. India C&S Market Future Forecast
Source: Media Partners Asia Report 2007 7

8. Film Industry- India Distribution Platforms- Size
Source: KPMG-FICCI report 2009

9. Size of Indian Film Industry -Revenues
Indian film industry expected to grow at CAGR of 11.2% over next 5 years
[compared to over 15% CAGR growth before economic downturn]
Current size of Indian film industry estimated around Rs billion in 2008 which is expected to grow at a CAGR of 12.2% to reach Rs168.6 billion by 2013.
Source: KPMG-FICCI report 2009

10. Key characteristics of Indian Film Industry
Indian film industry is dominated by individual directors and local theatre owners
Film production in India is characterized by the presence of large number of small privately held, family‐owned production houses
Highly fragmented distribution segment
The country is geographically divided into six territories. There are usually 50‐75 distributors for each territory, while only 8‐10 distributors operate on an all‐India basis. Distributors generally sell rights to sub‐distributors who cover certain sections in a territory
Major impact of digitalization of film prints leading to increase of number of prints in market on the first day of a movie
The industry had been deriving approximately 75% of its revenues from domestic box‐office ticket sales but over the years this is expected to fall in the range of 60%, while the rest will come from sale of overseas rights , sale of cable and satellite television rights, home video sales, music sales and in‐cinema product placements
Foreign direct investment (FDI) of 100% is permitted in all film‐related activities such as film financing, production, distribution, exhibition and marketing

11. Key factors in the film industry impacting the future
Corporatization of the industry
Growth in multiplexes
Digital cinema
Increasing collections from overseas market
Co‐production
Improved models of financing films
High Growth in home video market
Increase in marketing spends
India is in talks with several countries for treaties and agreements in the domain of entertainment and media
Varied unique subjects
Foreign films in India
Market for niche and Hollywood content
Improved State of Art post production facilities

12. THE MEDIA COMPANIES OF HINDUJA GROUP
INDUSIND MEDIA & COMMUNICATIONS LIMITED
(A SUBSIDIARY OF HINDUJA VENTURES LIMITED)
May 2009

13. The Hinduja Group : Introduction
One of India’s premier transnational conglomerates
Been in existence for over 90 years
Present in 10 business sectors
Present in 32 countries
Employs over 35,000 personnel
Major Companies Listed in Stock Exchanges -India
Turnover of the Group is several billion dollars

14. Guiding Principles of the GROUP
The Hinduja Group
Founder- Parmanand D Hinduja
Guiding Principles of the GROUP
Work to Give
“My dharma (duty)
is to work, so I can give”
Word is a
Bond
Act Local;
Think Global
Partnership
for Growth
Advance
Fearlessly

15. Philanthropic Activities
Business Activities
Investment
Banking
Global
Investments
International
Trading
Philanthropic Activities

16. Worldwide Locations Major Centres and Establishments :
Hinduja Group in India has a national footprint reaching to over 6 million people through
customers, cable operators, employees, dealers, branches and suppliers of it’s companies
Major Centres and Establishments :
Europe : London, Paris, Geneva, Moscow, Spain
United States : New York, Washington
India : Mumbai, Delhi, Chennai, Bangalore, Hyderabad
Middle East : Tehran, UAE, Saudi Arabia
South East Asia : China, Philippines, Jakarta
Africa : Johannesburg, Cairo, Mauritius
S. America : Argentina (Buenos Aires)

17. Hinduja Group – Overview
The Financial Services Group operates amongst the leading banks in Switzerland and India with specialization in Corporate, Retail, Private Banking, Trust Services and Merchant Banking
The Global Investments Group has eight investment divisions. Each of these, in turn, has individual companies within the defined area of business.
Information
Technology
Transport
Banking
& Finance
Chemical & Agricultural Business
Healthcare
Energy
Project Development
Media &
Communication
Hinduja Bank (Switzerland) Ltd 17 17

18. About us…. In Films…
A glorious chapter in the history of Indian Cinema, a chapter scripted in the early years by Hinduja Group’s initiative to finance, trade and distribute movies globally
The group tapped and exploited its role as a distributor of Indian films in both traditional and non-traditional territories. Realizing its role as the cultural ambassador of India, the Hinduja Group set up Ashoka Co. Ltd. In Iran in 1958
The first Indian movies to hit the Iranian screens were Raj Kapoor’s Shri 420 and the Dev Anand’s Baazi. In less than a year, the group set up offices in Istanbul, Egypt, Bangkok, Tel Aviv, Beirut, Jordan, London, Singapore, Jakarta, Mauritius, Madagascar to name a few
Ever the trend-setter, the Hinduja group broke new grounds by adding value to these movies in the form of dubbing, sub-titling, etc. The group formed a number of joint ventures with leading distributors globally to enhance the reach of Indian cinema into the hearts of millions around the world
Over the years, the Hinduja group associated with the leading Indian film makers to from partnership that heralded some of the greatest hits to ever hit the Indian screens. These movies would then transgress geographical boundaries thanks to the extensive distribution network of this group
Today Group’s Media Businesses are metamorphosed into “IndusInd Media & Communications Limited” (IMCL), an integrated media power house with service offerings in the content, access and commerce segments directly and through its various subsidiaries.

19. INDUSIND MEDIA & COMMUNICATIONS LTD. (Hinduja Group)19

20. The Market: What has changed
Under-declaration
Last mile control
Collection
Funding & Exit Strategies
Addressability is a reality now .Solves the problem of under-declaration through the government order that forced the upgradation of networks & purchase of over 3 million boxes by the MSOs
Digital migration & DTH competition are destabilizing forces to the LCO monopoly. These forces will shift the balance of power in favor of the MSO
In an addressable environment the utilization of a prepaid model will eliminate delinquent accounts. This model is a success
An exponential increase in the number and types of institutional investors interested in India and the switch from traditional asset backed lending to financing secured by cash flow.
Changes
Historical Challenges

21. The India Content Distribution Opportunity
Market and Legislation have changed to enable broadcasters to exploit content in an organized and transparent manner
Legacy issues of under -declaration of subscribers, income leakage, lack of bandwidth, piracy would soon disappear
Deployment of Digital set Top Boxes, DTH, IPTV etc offers an opportunity for offering niche/ customized channels to a large and young population
STBs would pave for services such as Pay per View, Video on demand etc enabling the broadcasters , film companies and studios to exploit library and fresh content

22. IndusInd Media and Communications Ltd. (IMCL) Subsidiaries/Associates
IndusInd Media & Communications- A Hinduja Ventures Company- (Restructured)
Public
Hinduja Group
Institutions
IndusInd Media and Communications Ltd. (IMCL)
(Cable TV, Movie Channel, Broadband Internet)
Hinduja Ventures
Real Estate, Cash,
Media, New Ventures
Subsidiaries/Associates
(Planet E Shop,-Shop 24/7-USN, UMN Networks)
New Networks
65.81%
19.19%
15% 22

23. IndusInd Media & Communications Limited (IMCL) Effective Shareholding Pattern: IMCL
59%
(ICL-Mauritius)
Hinduja Venture’s effective stake in IMCL:
59% plus 51% of Grant’s 6 % Stake = 63% 23

24. IMCL: Divisions and Businesses
INDUSIND MEDIA AND COMMUNICATIONS LTD
Cable TV
Services
Content
Broadband
Internet
Analog Cable
Movie Library Licencing
Internet on cable
Hindi Movie Channel
VOIP/Internet Telephony
Digital Cable
Premium Channel
Foreign Channels Aggregation
Planet E Shop Holdings India Ltd.( Associate) 24

25. IMCL Platform utilises best technology from global leaders
Subscriber Management System
(SMS)
IMCL has invested in developing a strong technical foundation partnering with global cable TV and convergence leaders like Magna Quest, NAGRAVISION, Motorola etc. which provides them a differentiator in quality and scalability of operations
CAS System
Set top Boxes
Other technology partners 25

26. IMCL ( Incablenet)Today: Assets
Infrastructure in Place:
Pioneer and leading multi-system Cable & Broadband operator in India
Present in 24 cities, of which 15 are main cities , 5 are neighborhood satellite cities including new expansions in 8 cities. In key cities - over 40% market share .
Only MSO to have extensive intra-city fiber networks
6,300 km of trunk and access HFC networks—80% of which is 2-way enabled
Digital systems implemented in 11 cities and STB box roll out commenced
Over 1000 employees
2,400 affiliated local cable operators—LCO
LCO averages 6 employees = effective service network 14,440 26 26

27. IMCL – Geography 14 Broadband cities Network Spread :
24 centres, out of which 15 are main cities
12 digital Cable cities : Mumbai, Delhi,Bangalore,Thane,Navi Mumbai,NOIDA,Ahmedabad, Vadodra, Belgaum, Nagpur,Sholapur and Kolhapur
Estimated subscribers in analogue : over 6.5 million homes
Digital Cable subscribers: around 300,000 , Exponential growth expected when regulations are implemented
Fardibad
NEW DELHI
NOIDA
UDAIPUR
AHMEDABAD
INDORE
SURAT
VADODARA
NAGPUR
THANE
NASIK
AHMEDNAGAR
MUMBAI
NAVI MUMBAI
Hyderabad
Baramati
BELGAUM
Nizamabad
GOA
Main Cities
Gulbarga
New Cities
BANGALORE
Satellite Cities
MYSORE
14 Broadband cities
ALLEPY 27 27

28. IMCL Today: Assets Our Differentiators:
We own and operate our own head-ends
We have the largest number of employees
We have our own technical and field staff
We design and implement our own plant
Only MSO with fiber optic infrastructure in our locations
We operate out of one head with redundancy in almost all locations 28 28

29. Content – TV channels MOVIE and Thematic In House CHANNELS:
CVO, the number 1, premier Cable Movie Channel, over 1000 titles
CVO’s Movie library can be utilized for Digital Cable through PPV
Indigital Premium Movie channel , which is ad free
Indigital Music channel ( ad free)
Indigital Classic Movies Channel ( ad free)
Multiple Thematic Movie Channels
CHANNEL AGGREGATION:
IMCL associate (PESHIL) receives permission for down linking Foreign channels
Satellite Channels with exclusive tie ups for Marketing and Distribution in INDIA
ARIRANG TV ( Global English language, Korean Channel)
MIRACLENET ( English Language Spiritual Channel of USA )
Radio RNW ( Radio Netherlands) tie up for “Indigital”
Tie ups and at advanced discussions with more International TV channels and Content Groups 29 29

30. Foreign Channel Distribution and Marketing

31. Content - Rights
Negative Rights Movies ( including the following):
Baghbaan- Amitabh/Hema
Boom-Amitabh/Jackie
Pitaah- SanjayDutt/Jackie Shroff
Mard/Coolie/Naseeb/Toofan- Amitabh
Asia Satellite Rights- 22 Movies
Cable Rights ( India) Movies
Premium Channel 31

32. Content-Film Financing ,Movie Production/ JVs-
Film Financing of select movies
IMCL in association with “Serendipity Films” ( Of “Being Cyrus” Fame) has commissioned a New Movie – “Teen Patti”
Starring: Amitabh Bachchan , Sir Ben Kingsley and Madhavan
Expected Release : July- 2009
In dialogue with other Directors / Production Houses for new Projects
Co- Production and JV’s with Studios
Digital Cinema Distribution opportunities- Satellite based, Broadband based for National and International 32

33. Regulatory- TRAI’s Recent recommendations on Restructuring of Cable Industry
Greater emphasis laid on network digitization, increased addressability and to encourage voluntary CAS
Incentives prescribed to Multi System Operators (MSOs) to introduce total digitized networks
The registration for cable TV operator to be replaced by a comprehensive and supportive licensing framework
Separate licensing frameworks for Cable TV operators (LCOs) and Multi System Operators (MSOs)
Eligibility criterion made specific to identify the entities who can act as LCOs and MSOs
Option and flexibility to choose Service area given both to LCOs and MSOs 33

34. What Media Group can Provide
Full Management of TV Channels ( uplinked from Abroad) ,including exclusive rights for Distribution and Marketing in India
Niche Program Contents for Digital Video (PPV) or utilisation in any video digital channel of Media Distribution Company
Feature Films, Documentaries and other content aggregation for digital distribution
Distribution of Indian Content in International Markets
Co-production of Movies National/International
Tie ups for Main line Distribution of Indian Films overseas with various Studios/Sales Agents/Distributors
Other Innovative Opportunities in Digital Cable,IPTV platform - India
Server based city specific channels in India with content aggregation in Digital Cable platform
Events and live contents, location wise
New Movies and niche content which can be utilized in digital platforms of Cable, IPTV, Mobile TV

35. Why Partner with IMCL
We can offer full solution through the use of our platform.
Guaranteed wide distribution through a well respected distribution player
Guaranteed distribution with IMC on our digital tier.
Packaging options in analogue and digital distribution.
Nationwide distribution to all platforms ( e.g.: Cable, Terrestrial, DTH, IPTV, Mobile etc) through Content aggregation Company/Division
Providing an easy access of new channels, new movies and niche contents to the Indian market by providing ready made solutions
Provide statistical information on all digital distribution
Provide an on-the-ground marketing force to maximize distribution
Provide ongoing compliance and information for channels and contents regarding all changes and developments
Liaisoning and coordinating with all Government and Regulatory bodies
The best value proposition for operating in the Indian marketplace

36. Film Distribution – Key Success Parameters Hinduja Media Group Strategy
Maximize Returns from the Satellite Market:
With the spurt in the number of Television channels, there is an increase in demand for movie content
Players can take advantage of this situation and enter into innovative arrangements with the channels. PPV’s ,VoDs,PVR’s are all possible in digital addressable systems
Digital Cable with addressability has options for launching films citywise and regional /segment wise
Instead of sale of satellite rights for a specific period, companies can enter into revenue arrangements based on number of screenings with satellite channels
This way the players need not get tied up for a specific number of years and also can sell these rights to multiple number of channels.

37. Film Distribution – Key Success Parameters Hinduja Media Group Strategy
Focus on Innovative marketing and packaging of content :
Today the theatrical windows in India are being greatly compressed
It has now become imperative to package ones product innovatively that could get the audience into the theaters in the opening week itself and sustain it self post that with word of mouth and second rung of promotional activity
In today’s age of clutter, it is as important to package and present your product cleverly as much as focusing on the right content
Companies need to focus on maximizing their revenue from alternate revenue streams ,mainly on the addressable digital TV distribution stream
With the Video on Demand services on Digital Cable, DTH and IPTV expected to pick up in future, players need to build up a strong and diverse content library to capitalize on content demand as well as mitigate their risks.

38. THANK YOU www.hindujagroup.com www.hindujaventures.com