iWorld
Eros Now driving Eros International growth
MUMBAI: The popularity of digital content has got traditional media scrambling to understand and shift to newer mediums. Leading production house Eros International’s digital arm is gradually emerging as the driving factor for the company’s growth given its Q1 result while its theatrical business revenue declined. Eros Now has not only seen a huge subscriber jump but also largely contributed to the record revenue digital and ancillary business. After gaining momentum in India, the company is seeing an influx of B2C subscribers from international markets boosting the platform’s overall growth.
“International is starting to track in line, we just started with some independent state campaigns in the US and the UK over summer. So we are going to start seeing a lot more action from international,” Eros Digital CEO Rishika Lulla said in an earnings call. Along with international, India’s B2C conversions are happening earlier than expected since B2B2C was targetted first.
Eros Now stands with 10.1 million paying subscribers as of 30 June. Initially, it did not opt for advertising so that people get accustomed to subscription. However, the company is also very confident about reaching its target of 16 million subscribers by the end of FY 2019.
It is now looking at nonintrusive brand integration. Lulla said that though it has not integrated with any brand yet, the initial conversations with several brands are on. “We’d probably see something being rolled out within the next quarter and hopefully we will start seeing a bit more revenue recognition from that post one quarter,” she said.
To scale up the digital business, the company is looking at a robust library including movies and originals. The target is to premiere minimum one to two movies in each week of a month leading to a total of 50 to 100 movies a year. In terms of originals, it is looking at 18 to 20 flagship originals, which is minimum one a month, and then two in some months. Other than flagship shows, the platform will have ‘normal originals’ also.
While the number of originals will be increased, the cost will be adjusted from the allocated $250 million capex. The content production powerhouse is looking at a mix between the movie and digital content production. Since Eros Now is helping margins to build the scales may be tiled in favour of more original shows.
“[For] the big tenfold movies, the cost has doubled and the box office of those movies are going down and thereby the other movies, the good script and the star cast, which are not being paid more are performing well and hence you have seen increase in the margins for those movies and less capex. That’s the reason [for] the less capex for those movies. Between that Rs 250 million allocated, we could allocate the capex for the originals,” Eros international executive chairman and CEO Kishore Lulla explained the strategy.
Eros International is looking at spending $750 million for all its businesses in the next three years. Though the amount may seem huge but cash flow from the studio business, Eros Now, gives the company the confidence that it won’t enter negative cash flow in the average of three years.
iWorld
Tech firms tweak office operations amid LPG shortage concerns
Infosys, HCLTech and Cognizant adjust cafeteria services and work policies.
MUMBAI: When geopolitics turns up the heat, even office cafeterias start feeling the burn. Several technology companies in India are adjusting workplace operations and food services as concerns over a nationwide shortage of liquefied petroleum gas (LPG) grow following escalating tensions in West Asia. Major IT firms including Cognizant, Infosys and HCLTech have begun rolling out contingency measures to reduce dependence on office cafeterias that rely heavily on commercial LPG.
The disruption stems from rising geopolitical tensions involving Iran after military action by the United States and Israel reportedly led to the closure of the Strait of Hormuz, a critical global shipping route for oil and gas supplies. The closure has disrupted the movement of LPG and liquefied natural gas across international markets, triggering concerns about supply constraints and price volatility.
According to a report by The Times of India, Cognizant has advised employees to bring their own meals to office where possible to reduce reliance on office cafeterias dependent on LPG based cooking.
The company has reportedly told staff that it is preparing for potential disruptions driven by supply prioritisation, price fluctuations and pressure on vendor networks.
As part of contingency planning, Cognizant is identifying alternative food vendors that do not rely on LPG. These include kitchens using induction based or solar powered cooking systems.
The company is also exploring partnerships with cloud kitchens that operate on electric or solar power to ensure uninterrupted food supply in case conventional cooking gas availability worsens.
Additionally, Cognizant is evaluating the possibility of expanding work from home or hybrid arrangements for non critical roles, partly to reduce commuting exposure if fuel prices rise sharply due to global energy disruptions.
Meanwhile, HCLTech allowed employees at its Chennai office to work from home on March 12 and March 13 after cafeteria vendors were unable to operate because of the LPG shortage.
Several food service vendors at the campus reportedly suspended operations as they struggled to secure cooking gas supplies, prompting the company to permit staff to work remotely for the two days.
Infosys has also issued internal advisories across multiple locations, including its campuses in Bengaluru and Chennai.
The company informed employees in Bengaluru that cafeteria services would continue but with reduced menu options due to concerns around commercial LPG availability.
As part of the temporary adjustments, live food counters have been suspended, and employees have been encouraged to bring home cooked food while the situation evolves.
While LPG shortages in India remain a developing situation, the measures taken by these technology firms highlight how global geopolitical disruptions can ripple through unexpected corners of the economy, even the humble office lunch.
For companies with large campuses and thousands of employees relying on daily cafeteria services, cooking fuel shortages can quickly turn into an operational challenge. Until global supply chains stabilise, many workplaces may find themselves rethinking everything from food sourcing to flexible work policies.
