Reliance Broadcast looks to stem attrition, grow at 30%

Reliance Broadcast Network Ltd (RBNL), part of the Reliance ADA Group, is looking to grow its top line at over 30 per cent annually over the next five years. The company closed FY '11 with standalone revenue of Rs 251 crore, up 36 per cent, with its radio business under brand Big FM contributing 70 per cent.

The company expects future growth to be driven by radio and its more recent television foray, with each contributing 30 to 40 per cent to the top line in five years.

It has 45 Big FM stations across the country, and Big FM is keen to expand with new licenses to be issued under phase three.

Big FM

Mr Tarun Katial, CEO, RBNL, noted that Big FM's presence in 45 cities would allow it to leverage economies of networking significantly, allowing for low cost expansion in Tier II and Tier III towns. He expects the first stations under phase three of FM radio expansion to be operational by the end of the current fiscal year, post-Government clearances.

Over the last six months, RBNL launched three English entertainment channels in partnership with CBS, and a customised Hindi entertainment channel, Big Magic, for the Hindi heartland. A partnership with RTL Media will see the launch of two entertainment channels — one each in the action and reality genres — in the current fiscal.

RBNL is considering taking the ‘Magic' brand global, and also replicating it for audiences in Gujarat, Maharashtra, West Bengal and Punjab. Imagine Showbiz, which RBNL bought out from Cinestar Advertising, will be re-launched in partnership with RTL in six to eight weeks.

Live events (and IP) and Out Of Home advertising complete the current business interests of RBNL. The two will explore synergies with the radio and TV businesses, with live events also leveraging them as media multipliers to increase revenues. RBNL is also working on a digital offering, though details are not available.

Talent Crunch a challenge

Even as the five-year-old media enterprise makes plans for the next five years, there is acknowledgement that expansion would come with its attendant challenges led by the talent crunch.

According to Mr Katial, attrition, which is at 30 pc across RBNL, should ideally be not more than 10 to 15 per cent. He said, “Talent is the biggest issue not just for us but across the industry. There is no ready source for talent in the country for radio. Our attrition rate would be less than that in the industry, but it is something we want to work on and improve.”

RBNL is engaged in several initiatives on the HR front to increase retention. The company has over 1,000 employees, of whom over 800 are engaged in the radio business. After expanding from radio to cover more business verticals, attrition has come down thanks to internal transfers becoming possible, claims the CEO.

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