Laura Kauderer, MIT ID: 927732643

15.227b Spring Trip to India

Final Paper Mini Case Study
May 13, 2004

The Times of India: Emerging Strategies for Growth

On January 22, 2004, Vineet Jain, managing director of the Times of India, entered his
office smiling. He had just signed a joint operating agreement with Dow Jones & Co. to
publish the Wall Street Journal for India. The Journal would be published 5 days a week,
with Dow Jones owning 26% the maximum allowed by foreign ownership laws and the
Times of India, owning 74% of the new venture. The content would focus on Indian readers
and tap into the global resources of the Wall Street Journal. Additionally, the editor named
was Suman Dubey, a nationally recognized Indian journalist.
This marked a major accomplishment for the both the Times of India and the country
as a whole. The presence of a customized Wall Street Journal for India validated its growth
and economic importance worldwide, a sentiment noted by Peter R. Kann, chairman and CEO
of Dow Jones, who said in a press release: India is a vibrant and growing part of the global
economy, and we look forward to playing an increased role in charting and spurring that
growth. Jain himself echoed these comments, stating:
The joint venture comes at a moment when India is poised to become a global player
across a range of industries: from software outsourcing and entertainment, to
pharmaceuticals, textiles and automobile components. As Indian companies, investors
and consumers begin to think beyond the geographical boundaries, the need for global
information and perspective will grow. We believe that the venture fits in perfectly
with the emerging needs of the time.
Indeed, the future seemed bright for The Times of India.

History of Journalism in India

While the printing press appeared in India as early as 1670, not until 1777 was the first
newspaper printed in Bombay. These papers were operated by Parsi businessmen, and printed
in English several dozen existed by 1800. Papers in native languages appeared in the 1820s
and 1830s; one example, Mumbai Samachar is still in publication today. By 1850 political
newspapers like Rast Goftar began publication.
British colonialism contributed a tradition in freedom of the press, and ownership of
many British newspapers was transferred to Indian business groups after independence. The
country experienced an impressive growth after independence in 1950 there were 214 daily
newspapers and in 1990 that number had increased to 2,856. Today, India is a country rich
with publications, with over 31,000 news titles published, including over 4,000 daily
newspapers written in almost 100 languages. The largest newspaper in the country is the
Times of India, published by Bennett, Coleman & Company.
Bennett, Coleman & Company
Bennett, Coleman & Co. is Indias largest media group, and owns several different
media channels. It first published the Bombay Times and Journal of Commerce, later known
as the Times of India, in 1838. Originally a British operation, the company has been under the
leadership of the Jain family for 50 years. Vineet Jain is the third generation of his family to
run Bennett, Coleman, and many of his family members play key roles in the business.
The American, and to a large extent worldwide, newspaper industry has experienced a
slow decline in the past decade. Investors classify it as a mature industry and both circulation
and advertising dollars have diminishing returns. But the Times of India is one of the papers
to have bucked this trend, having grown 17% in the last five years, and becoming the largest
English-language broadsheet in the world.
Bennett, Colemans holdings include:

The Times of India Their flagship product and the worlds largest English
broadsheet daily, with a circulation of 2.2 million copies nationwide daily and
readership of 4 million.

The Economic Times Indias most widely read financial paper and the second
largest English business daily newspaper with a circulation of 400,000.

Femina Magazine for the modern Indian woman. Femina organizes the Miss India
pageants, the national feeder for Miss Universe.

Filmfare Magazine about the Indian film and entertainment industry (Bollywood).

Navbharat Times/Sandhya Times The nations leading Hindi daily newspapers.

Times FM The largest FM broadcaster in five Indian cities, with an audience of

over 7 million people.

Internet Websites of their publications as well as a media portal.

Planet M Retail Music and entertainment store.

Times Music Label Indian and International music.

Critiques of Diversification
Jain has encountered much disapproval for his rapid growth. Critics argue that the
Times of India uses its pages for too much blatant cross-promotion of its media products,
which in turn diminishes its journalistic credibility. The paper published articles and used
extensive editorial space touting their other media holdings, often ignoring stories pertaining
to their competition. In 2003, the paper launched edvotorials, sections where public
relations firms and companies can place content which, while they are advertisements, appear
as news, save for a small disclaimer at the articles end.
Press in India and around the world have picked up on the recent practices, which has
cast a cloud over the integrity of the newspaper. The Times defends its methods with
transparency, noting that paying to be featured in the newspaper is a practice they have never
claimed to hide. Moreover, other media companies have looked at the soaring profits posted
by Bennett, Coleman and considered replicating their methods. This has frightened many
journalists, who have actively campaigned against these practices.
The backlash against the Times of India has been a continued concern of management.
Ardent opponents have called for boycotts of all Bennett, Coleman products, prompting a
protest campaign on a website http://techrose.org/justsayno, and calling the company the
Microsoft of Indian media too penetrating, too rich, too arrogant, and too powerful.
The Times of India sees this diversification and business development in a different
light, an opportunity to meet a growing segment the swelling ranks of the urban Indian

middle-class. [Combining news and advertising is] a model the rest of the media industry
could follow and benefit from, notes the Times Internet CEO Mahendra Swarup. Jain and his
team have made the Times a destination, the must-read paper to begin the morning, not only
for the current national, world, and business events, but also for the society gossip. And that
combination sells papers. Jain noted:
Today's readers don't just expect news about politics or society or business issues
anymore. They also expect an editorial line on contemporary issues like fashion,
entertainment, and lifestyle. So instead of sticking to the traditional age-old methods
of reporting on these categories, why not get the advertiser to give the news to you and
pay for it as well! It's a win-win the reader benefits and so does the advertiser.
Thoughts for the Future
As Vineet Jain reflected on the new exciting partnership with the Wall Street Journal,
he reflected on other growth strategies for the future. He had publicly commented on his goal
for more partnerships, stating: We are open to strategic alliances that will not only bring value
in terms of money but will enable us to emerge as a global media company. In fact, a
partnership with the BBC was already in the works.
However, the recent financially-motivated editorial decisions had serious implications
towards partnerships with top global media companies. Jain had to wonder, does the richest
privately-held media group in India really need to tarnish its journalistic integrity by chasing
funds through quasi-news stories? Were there other emergent strategies for growth? Should
Bennett, Coleman, & Company go public?
Staring out the window of his office, Vineet Jain reflected on these thoughts and where
to bring his company in the future.