Zee Makes Cutbacks
Zee Telefilms’ (ZTL) board has completed a major corporate restructuring involving some 11 broadcasting/multimedia subsidiaries, including E-connect India, Zee Multimedia Worldwide, BVI and Asia TV, USA will cease to exist. After the units are closed down, Zee will have only 12 subsidiaries. The entire process is expected to be completed in six to eight months after necessary regulatory approvals, ZTL Group Broadcasting CEO Sandeep Goyal said.
“In the past few years because of both organic and inorganic growth, the corporate structure of Zee had become multilayered and complex and also due to subsequent changes in regulatory and tax framework, inefficiencies had crept in,” he said after a board meeting. “We aim to achieve better tax-efficiency and leaner corporate structure by reducing the number of subsidiaries,” he added.
Zee expects to achieve considerable savings with closure of these subsidiaries, which would also facilitate the process of consolidation of financials of remaining subsidiaries with that of ZTL, the holding company. ZTL Chairman Subhash Chandra said this would help create value for shareholders and ensure better business practices.