UTV Software Communications Ltd (UTV), one of the most important integrated global media and entertainment companies in India, has seen recent rapid expansion, both in existing home business and into new offshore operations.
The CEO Ronnie Screwvala was driving the company on a double track:
On one hand he had started three verticals in India in order to diversify the offer and take advantage from the high-growth sectors opportunities;
On the other hand he wanted to expand worldwide the business throughout the launch of a global film distribution network in the United states, the United Kingdom, the Middle east and Mauritius .
In order to sustain the ambitious project of the firm they were looking for strategic investors that could boost the expansion in new countries . The principal global aim of the company might be to improve growth thanks to the 25 million non-resident Indians that pulled demand for Indian content, thus Indian channels were telecast and movies were distributed abroad.
At that time the first opportunity of the firm was given by the possibility to establish a partnership that could give to the company an edge to expand itself all over the world.
Even though UTV had this important opportunity it should not underestimate the possibility of future growth given by the local market, in fact that market is considered one of the most important from a growth perspective. Again the company had to balance the possibility of expansion in foreign market between the chance of enlarging the base of UTV thinking, for example, to an acquisition of other local companies.
In 2006 the firm was put in front of important decision, UTV was evaluating the proposal for an alliance with The Walt Disney Company that proposed to acquire Hungama TV and made a significant investment in UTV(14,9%), this offer signed a turning point for UTV that had to choose the best