MUMBAI: Jaipur based Kushal Global Ltd has become the first commercial FM radio player in Phase II resolving to discontinue its FM radio venture- Super FM.
Kushal Global is currently on the lookout for probable buyers to take over its radio business. With radio stations in Jodhpur and Ajmer, Super FM is the first operator in Phase II to declare its intention to exit the FM business.
Kushal Global Ltd chairman and managing director Kamal Mehta confirms, We plan to wind up our commercial radio business as we lack technical expertise of running a station. Kushal Global is into the educational sector and we did not find the radio business viable although we didn’t incur any losses in two years of operations….
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For acquiring licenses in Phase II, the group had bid for approximately Rs 20 million in 2006 – Rs 7.6 million for the Ajmer frequency and Rs 11.4 million for its Jodhpur frequency
Super FM has already been approached by national players who are on the lookout for expanding their foothold in the Jaipur region. Reveals Mehta, We are looking out for partners to sell our radio station or lease it out, whatever is profitable. We haven’t incurred any losses in our radio venture as we operated on a smaller scale and are looking to recover costs. We are looking for a buy out at approximately Rs 20 million…. Sources mention that national players including Radio Mirchi and Red FM are in talks with Super FM for the possibility of a buyout.
The current Phase II regulations restrict tradability of licenses till the completion of five years of operation and therefore, such an acquisition becomes questionable. Clearing the air Mehta says, We can work out solutions by getting into an agreement with the company through stake buying or lease out…
Entering the commercial radio business in Phase II, Kushal Global rolled out its first station in Ajmer in August 2007, followed by its second frequency- Jodhpur in December the same year
However, the station has been non-operational since March 2009. The Information and Broadcasting FM Cell wrote to the company last year for violation of the GOPA (Grant of Permission Agreement) provisions. The ministry further dispatched a letter in February 2010 intimating revocation of license as per GOPA agreement
Last year, Pan India Network Infravest Private Limited (an Essel Group company) surrendered its five licenses for phase II. The group had returned the other three licences in 2008 itself
Radioandmusic.com had earlier reported about smaller stations on the verge of bankruptcy looking out for national buyers. With players opting out of the radio business citing non-viability, the pending Phase III becomes a concern for the industry.
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