Financial Daily from THE HINDU group of publications
Wednesday, Feb 13, 2002
AOL-Time Warner to revamp local biz
NEW DELHI, Feb. 12
THE AOL-Time Warner Group, one of the largest media groups in the world, is restructuring its educational, music and video products business in India and has firmed up plans to take the wholly-owned subsidiary route for import and distribution of these products.
For this, the group company Sammler Kabinett Inc, based in Virginia, US, has approached the Foreign Investment Promotion Board (FIPB) for permission to set up a 100-per cent subsidiary to undertake wholesale trading through ex-bonded warehouse sales of home education and home entertainment products.
Time Life Asia, one of the three AOL-Time Warner brands, has been marketing products in the country for the last 25 years, with an annual sale of $1 million.
The proposed Indian company will now undertake wholesale trading of educational, music and video products through mandatory bonded warehouse sales.
According to the application filed with FIPB, the company will bring in investments of Rs 7.5 crore, to be spread over a five-year period.
While Time Life Customer Service Inc will hold one share as a nominee of Sammler Kabinett Inc, the remaining will be contributed by the latter.
The company proposes to co-ordinate and supervise the import of educational, music and video products in economical lots and establish a professional marketing and distribution structure comprising independent distributors, sales consultants and book advisors.
It will also undertake marketing support activities such as advertising, promotion, product brand and pricing and train independent distributors/sales consultants.
The company plans to provide value-added logistics and fulfilment services including inventory management, secure warehousing and delivery, specialised packaging, product branding and pricing and promotions.
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