Kolkata: The scheme of reconstruction of Saregama India Ltd (SIL) was discussed today at a meeting of the minority shareholders, with the issue being sent to the polls.
Under the scheme of arrangement approved by the SIL board, with effect from 30 June 2003, the television software division of SIL will be transferred into another subsidiary of SIL, Saregama Films Ltd.
Explaining the rationale behind the move, SIL managing director Dilip Mehta told shareholders that though the TV software business is much smaller than SIL''s core business of music, it is an emerging growth area, which has the potential as an independent full-fledged business.
"The TV business, which was started in 2000, is now on a sound footing," he said, adding that two of the Tamil serials produced by the division, Soolam and Velan (aired on Sun TV), have done over 100 episodes with high ratings.
The demerger of the TV business will help meet its funding needs or even find a strategic alliance partner, say company sources. "SFL will be engaged in filmmaking and also focused TV software and will be capable of independent evaluation after this recast," Mehta said.