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Kirloskar Multimedia makes a comeback bid

The company, which has had troubles in the last two years after snapping ties first with Videocon and later with Padmini Polymers, hopes to generate revenues this year.

T O D A Y

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Ajay S Kirloskar, managing director, Kirloskar Multimedia, said 1998-99 would be a significant year. The company has invested Rs 140 million till date and hopes to develop 50 more titles in 1998-99. According to Kirloskar, the company could not proceed with the planned launch of 15 titles earlier, as Videocon, which had agreed to invest Rs 250 million through equity, backed out after an initial investment of Rs 100 million. The promoters had to bring in the balance.

Subsequent to this, KML tied up with Padmini Polymers for the marketing and distribution of its titles abroad as the latter has a good network in the Far East, Europe, West Asia and the US. The company launched its first title, Fables from India, in 1996. This marketing arrangement too did not work well for KML as Padmini, which sold about 15,000 titles abroad, did not pay the agreed royalty fee to KML.

"We felt that Padmini Polymers did not market our titles well and sales were much below expectation. Since the agreed royalty amount too was not paid to us, we decided to terminate the contract,'' said Kirloskar.

Now KML is planning to market and distribute its titles itself, both in the export and the domestic markets. The company is planning to open an office in the US and has identified major cities for the first phase of its distribution network.

According to Kirloskar, the company has chalked out an aggressive distribution strategy for the domestic market. "We are planning to distribute our titles in about 1,200 retail outlets in 30 cities in the next four months,'' he said.

- Compiled from the Indian media

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