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`Hindustan Times' among newspapers targeted by global media

These days media developments in India are grabbing headlines because here, as in other sectors of the economy, the outside world is taking an interest. Perhaps most significantly, the Wall Street Journal is planning a launch in the country through a tie-up with Bennett, Coleman & Co, publisher of one of the largest broadsheets in the world, the Times of India, which claims a circulation of 2.2 million.

The venture is planning to publish the Wall Street Journal five days a week, edited for global Indian business readers and international business travellers, drawing on the newspaper's global content. Dow Jones would own 26 percent in the venture -- the maximum foreign equity allowed under law, and Bennett, Coleman would pick up the balance.

As newspaper publishers across the world worry about diminishing returns, India is one of the few countries showing a growth in newspaper circulation. For the period 1998 to 2002, newspaper sales in India were up by 17 percent, according to the World Association of Newspapers.

The industry seems to be on a high after the government liberalized print media rules -- ending years of debate -- and allowed 26 percent foreign ownership. "This may just be a starting point," says Shobhana Bhartia, vice-chairwoman of the Hindustan Times, which has become the first publisher to obtain government approval for bringing in foreign equity.

Henderson of the UK, a subsidiary of Australia's AMP, is forking out 1.25 billion rupees (US$300 million) for a 20 percent stake in the Hindustan Times.

The Times of India group, which owns English language lifestyle and film magazines Feminaand Filmfare, has also recently signed a memorandum of understanding with the BBC for a "long-term and meaningful partnership" in the magazine publishing business.

The Financial Times, which has a tie-up with the daily Business Standard, is another prominent newspaper investing in India.

"India forms part of our global strategy to grow the FT brand by investing in key markets and offers a huge potential," says Joanna Manning Cooper, director of communications at the FT. Pearson, which owns the FT, is investing 141 million rupees (US$3.07 million) for a 13.85 percent stake in Business Standard.

The FT is also planning to increase sales by making the paper available in key cities in India on the same day it is printed, whereas now it arrives a day later.

The FT already has an Asia edition, which was launched in September, 2003. It is published in Hong Kong and serves key markets such as Singapore, Japan, Korea and China.

The Hindustan Times is looking at launching an edition in Mumbai, the financial capital of India, which generates the bulk of national spending on advertising.

There has been speculation that another prominent newspaper group, Anand Bazaar Patrika (ABP), which owns the Telegraph title, is also eyeing the Mumbai market and may tie up with a foreign group.
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