UTV Software Communications - History

History

UTV started off as United Software Communications Pvt. Ltd. on 22 June 1990. Subsequently, they went public and were renamed as UTV Software Communications Ltd. in 1998.

The UTV Group was incorporated as ‘United TeleVision Software Communications Private limited’ on June 22, 1990; under the Companies Act, 1956 as a Private Limited Company. Subsequently, it became a deemed Public Limited Company and the word Private was deleted on November 27, 1995. It was renamed as ‘UTV Software Communications Limited’ with effect from March 19, 1998.

At the time of incorporation in 1990, the group was primarily engaged in the production of television content for Doordarshan- Prasar Bharti and also production of ad films. In 1992, with the entry of satellite TV, ZEE TV commissioned the group for producing content of around 250 hours wherein it became one of the largest content providers. Around the same time, it also expanded into the businesses of in-flight entertainment programming and dubbing. In 1993, it ventured into the business of acquiring programs from outside producers and marketing airtime on their programs. In 1995, it launched a daily soap titled ‘Shanti.’

In May 1995, it acquired 54.60% stake in Laezer Production Private Limited in order to enter into the area of post-production. Laezer Production Private Limited was incorporated on January 29, 1982. On becoming a deemed Public Limited Company, the word ‘Private’ was deleted on November 27, 1995. Subsequent to the acquisition of 54.60% stake by the UTV Group, Laezer Production Limited was renamed as UTV Studios Limited in December, 1995. At that point of time United Studios Limited (USL) was engaged in the business of providing post-production facilities to television software houses, private producers and advertisers.

In 1996, Disney contracted the UTV Group to dub its library into Indian languages. In 1996, the company’s In-flight Entertainment division, which was hitherto catering to Air India only, also started catering to other international airlines.

In 1998, the company's subsidiary USL took over Ram Mohan Biographies, a well-known animation production house pioneered by Mr. Ram Monan, one of the leading animation artistes in the country. The animation division in USL was originally called RM-USL and thereafter was rechristened as UTV Toons and remained as a division of USL.

The company then diversified into Broadcasting, by acquiring controlling interest in Vijay Television Limited in November, 1998. Vijay Television Limited was incorporated on May 30, 1996 and operated Vijay TV, a 24-hour Tamil-language channel out of Chennai. The Udayar family of Chennai initially controlled Vijay Television as GEC channel since 1992. In 1995, United Breweries Group acquired the operational control of the channel and the name was changed to Vijay TV. The UTV Group acquired the controlling interest from United Breweries Group.

In 1995-96, the company also ventured into the movie distribution business.

In 2000, it incorporated a group company called UTV Net Solutions Ltd. (UTV Net) in which it held an 86% stake. UTVNet was in the business of Internet content creation and aggregation, Indian regional language portals (with dual language content) and leveraging of their audio/video library rights for Internet usage. In 2000, UTVNet started the business of broadband content aggregation under the brand name sharkstream.com, through its subsidiary Sharkstream.com Pte. Ltd., Singapore.

In 2002-03, the group acquired the studio business of Western Outdoor Media Technologies Limited (WOMTL) in order to attain leadership position in the Post-Production, Special Effects and Animation business. The Studio operations of WOMTL were thus merged with the group’s post-production business. Since 2000-01, the UTV Group initiated a corporate restructuring exercise in order to consolidate their holdings in certain group companies and subsidiaries. The objective of these exercises was to maximize shareholder value, remove conflict of interest and build a powerful combined entity that would be involved in various aspects of the entertainment business.

Between 2007 and 2011 UTV was targeted for acquisition by studios in USA and UK. Fuse Global, global media fund had approached and made several attempts to play a role in becoming a financier to the studio, but it never materialized for Asian media billionaire Keyur Patel who has also done similar large format deals in USA.