 "Zee")
Zee Entertainment Enterprises Ltd (ZEE) has launched a structured Monthly Management Mentorship (3M) Programme, as announced by the company's board through a filing on the exchanges. The primary goal of this initiative is to support and empower the management team in achieving the targeted 20 per cent earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin set forth by the managing director and chief executive officer.
To oversee the 3M Programme, a special committee has been formed, comprising ZEE Chairman R Gopalan and Uttam Prakash Agarwal, chairman of the audit committee. The Committee's primary responsibility is to assess the business performance of the management and offer strategic guidance as needed, as stated in the company's filing.
Following an initial review process undertaken by the Committee, specific business verticals that require critical assessment have been identified. These include Margo Networks (Sugarbox), Teleplay & Zindagi, Hipi, Weyyak, and the English Cluster of Linear TV Business. Recommendations have been made to these verticals to reduce losses and significantly enhance performance levels.
"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, have certainly strengthened. Under the able leadership of Punit Goenka as the MD & CEO of the Company, the businesses are well-aligned and focused on 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 filing read.
Additionally, the Committee scrutinised the Technology and Innovation Centre (TIC), which had incurred an expenditure of approximately Rs 600 crore in the last year. The Committee emphasised the need to focus on return on investment (ROI).
While acknowledging the TIC's technological advancements, the Committee recommended redirecting resources towards content development and distribution, leveraging AI and ML tools to gain insights into consumer behaviour.
"With this view, the committee has advised that the management should reduce the expenditure at the TIC by 50 per cent, for the Financial Year 2024-25; and utilise its services to enhance the company's content development, distribution and monetisation approach," Zee said.
