Zee Entertainment Enterprises Ltd. (ZEE) has floated a structured Monthly Management Mentorship (3M) Program in a bid to measure business growth, the broadcaster said in a regulatory filing. The objective of the program is to guide and enable the management team to achieve key performance metrics, including the targeted 20% EBITDA margin, proposed by the MD & CEO.
The program, led by ZEE Chairman R. Gopalan, has been constituted to protect the interests of all stakeholders of the company. The institution of the 3M Program is a firm step in this direction. To drive the 3M Program, the board has formed a Special Committee to review the management’s business performance and provide the required directional guidance.
The Special Committee comprises of Zee Chairman, R Gopalan and Uttam Prakash Agarwal, Chairman of the Audit Committee.
ZEE Entertainment said the 3M Program Special Committee has already conducted the first set of extensive review sessions with the management to evaluate business vertical plans, enhance the revenue generation approach and optimise resource utilisation for improved efficiencies across the company.
Gopalan 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 optimize the utilisation of the human capital.”
The 3M Program Special Committee has identified business verticals that require a critical assessment. The critical verticals include: – 1) Margo Networks (Sugarbox) 2) Teleplay & Zindagi 3) Hipi 4) Weyyak and 5) English Cluster of Linear TV Business. The Special Committee has advised that the identified business verticals will need to substantially reduce losses and enhance their performance levels.
The 3M Program Special Committee has also conducted a detailed analysis of the Technology and Innovation Centre (TIC), which had incurred an expenditure of approximately Rs 600 crore in the last year.
“The Committee has noted that the TIC has developed a substantial level of technology and tools; however, it has highlighted the immediate need to focus on Return on Investment. The Special Committee has advised that the management should leverage the TIC’s Artificial Intelligence (AI) and Machine Learning (ML) tools to gain a deeper insight into the consumer profiles. With this view, the Committee has advised that the management should reduce the expenditure at the TIC by 50%, for FY25; and utilise its services to enhance the Company’s content development, distribution and monetisation approach,” said Zee.
The move comes after Zee faced a tough situation after its much-talked $10 billion merger with the Indian unit of Sony got scrapped. Besides, a $1.4 billion cricket broadcasting agreement with the Walt Disney -owned Star India was also affected after Zee quit the deal.
The committee has also advised that Zee’s management reduce expenditure at its Bengaluru-based Technology and Innovation Centre by 50% for fiscal 2025, the company said.
Shares of Zee Entertainment Enterprises closed at Rs 139.50, down by more than 2.07%.
