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The Marathi paper industry faces a great struggle
There were ten newspapers, a slowly growing magazine brand and advertising revenue of 1,000 Swiss francs. Will the DB Corporation's advance into the Marathi news publishing industry upset it? Dainik Bhaskar(Hindi), Divya Bhaskar(Gujarati) and DNA(English), among others, are on an aggressively expanding course. The last big introduction took place in August last year at the small Jharkhand fair.
Dainik Divya Marathi is due to leave Aurangabad by the end of May, followed by spending in the 10 uneven towns of Maharashtra, one of India's wealthiest states. Approximately half of them are expected to subscribe to Dainik Divya Marathi. DB Corporation CEO Girish Agarwal believes the paper will generate operational profit margin in three to four years.
Lokmat, its flag ship, is one of India's best-selling papers and the Marathi name. Are there two main factors why Dainik Divya Marathi could be good news for the esteemed Rs 1,000-crore Marathi newsmarket. This will accelerate economic development and could at last produce a pan-Maharastric paper. A new, aggresive player will boost the reader base.
"Marathi paper has been stagnating for some time. As the Marathi channel grows, the daily paper grows at a slower pace than the population," says Punitha Arumugam, CEO of Madison Media Group. The Marathi papers cover half of the 112 million inhabitants. At around 77 percent, the state has one of the highest rates of alphabetization, so that the capacity to extend the audience in the country is maintained.
Dainik Divya Marathi, Kumar Ketkar, editorial journalist, tells why he believes that. "The Maharashtra is India's most urbanized state, with more than 10 second towns, five of which are becoming large towns in this ten-year period. Secondly, the state has the second good thing about it.
"Marathi markets are segmental. "For example, Sakal is powerful in Pune and west/South Maharashtra or The Maharashtra Times and Loksatta in Mumbai. "Maharashtra's (six) areas have different historic ties, completely different farming economies, a diversity of policy development and cultures, and are ecologically far apart.
It is so much so that hardly anyone in Marathwada is interested in parts of Konkan or nobody in western Maharashtra is concerned about what is going on in Vidarbha. There is a chance for Dainik Divya Marathi because it has no particular geographic identity," he says. Vis-à-vis the difference Ketkar speaks of, a pan-Maharastric label is a major challange, emphasizes Janak Sarda, Managing Editor of the Deshdoot Group of Newspapers.
"It' going to be interesting to see if these boys (DB Corp) can get the state reading public. In other countries where DB is present, such as Gujarat or Jharkhand, TV is not a fierce rival. DB faces a powerful TV industry in Maharashtra. The Marathi is one of the biggest and most lucrative news and entertaining categories.
That is a good thing, because a large part of the work to develop the markets, namely the transformation of regional advertising companies into massmedia, was done by television. Second, pricing battles (a popular DB tactic) do not always work in this particular industry, says L. S. Krishnan, CEO of Sakal Papers. It points to Pune, where the Maharashtra Times started in January this year with an 11 for four mo.
At Pune Markt Sacal costs 3 R' per copy. Pune, however, is Sakal's home town. In the Marathi news publishing business, many repeat this feeling of "content will be the winner of the cover". "The Marathi reader is very loyal," Sarda emphasizes. Nonetheless, in every country in the world India has shown that they are very vulnerable to the prices of their newspapers.