Zee Entertainment Introduces Monthly Management Mentorship (3M) Program
The Board of Zee Entertainment Enterprises (Zee) has introduced a structured Monthly Management Mentorship (3M) Program to guide the management team to achieve key performance metrics, including a targeted 20 per cent EBITDA margin as proposed by the MD & CEO. This initiative, spearheaded by Zee Chairman R Gopalan, demonstrates the Board's dedication to delivering enhanced value to all stakeholders. Gopalan emphasised the meticulous approach adopted by the Board to safeguard the interests of the company's stakeholders in recent interactions with the press and investors. The implementation of the 3M Program represents a decisive step in this direction.
To oversee the 3M Program, the Board has established a Special Committee tasked with reviewing the management's business performance and offering necessary strategic guidance. This committee is composed of Gopalan and Uttam Prakash Agarwal, Chairman of the Audit Committee.
The inaugural sessions of the 3M Program Special Committee involved comprehensive reviews with the management to assess business vertical plans, refine revenue generation strategies, and optimise resource allocation to enhance overall operational efficiencies throughout the company.
Gopalan, Chairman, Zee, speaking after the completion of the first phase of the 3M Program, said, “After completing a detailed set of 33 meetings with various business verticals, corporate functions and leaders of the management team; our confidence and belief in the potential of the Company to deliver the targeted results, has certainly strengthened. Under the able leadership of Punit Goenka as the MD & CEO of the Company, the businesses are well-aligned and focused towards the set goals for the future. Leveraging the external lens and an outside-in perspective, the Committee has provided its independent, neutral and fresh views to the business leaders enabling them to further improve their efficiency and performance. The Board has also advised the MD & CEO to further simplify the management structure and optimise the utilisation of the human capital.”
The 3M Program Special Committee has identified specific business verticals that necessitate a critical evaluation. These include - 1) Margo Networks (Sugarbox), 2) Teleplay & Zindagi, 3) Hipi, 4) Weyyak, and 5) the English Cluster of the Linear TV business. The committee has advised that these identified verticals must reduce losses and elevate their performance standards.
Furthermore, the Special Committee has dedicated time to conduct an exhaustive analysis of the Technology and Innovation Centre (TIC), which incurred an expenditure of approximately Rs 600 crore in the previous year. While acknowledging the TIC's advancements in technology and tools, the committee has emphasised the immediate need to focus on Return on Investment. While appreciating the TIC's contributions in gaming and product development, the committee suggests that many projects have reached maturity levels.
After evaluating the TIC's strategy to evolve into an independent technology company, the Committee has recommended that the management maintain focus on its core expertise, ethos, and DNA, particularly in content creation. Consequently, it advises utilising the TIC's services to enhance the Company’s content development and distribution processes. Moreover, it suggests leveraging the TIC’s Artificial Intelligence (AI) and Machine Learning (ML) tools to gain deeper insights into consumer profiles. With this perspective, the Committee proposes a 50 per cent reduction in TIC expenditure for the Financial Year 2024-25, directing resources towards enhancing content development, distribution, and monetisation strategies within the company.
The 3M Program Special Committee has conducted a thorough review of the Company's Music Business, advising its leadership team to explore additional monetisation avenues to bolster the vertical’s contribution to the Company’s profitability. Furthermore, it recommends that the Music Business focus on further cost optimisation while maintaining its dominant position in the market.
The Board maintains a keen focus on upholding the highest standards of corporate governance, having implemented numerous incremental measures to safeguard the Company's intrinsic value. To protect stakeholder interests, the Board has recently established an 'Independent Investigation Committee' tasked with meticulously examining all allegations raised by regulatory agencies against the Company, its Promoters, and Key Management Personnel (KMPs). This committee will submit its findings and propose necessary actions to the Board.
The recent appointment of three Independent Directors, endorsed by shareholders on 15 March 2024, underscores the confidence shareholders have in the Board. Looking ahead, the Board remains steadfast in its commitment to offering guidance and counsel to the management to attain the Company’s defined objectives.
