MUMBAI, India--(BUSINESS WIRE)--Reliance Industries Limited (“RIL”) and Eros International PLC (“Eros”) announced today that RIL, through a subsidiary, has agreed to subscribe to a 5% equity stake in NYSE listed Eros at a price of $15.00 per share, which represents an 18% premium to last closing price. The transaction is subject to customary regulatory and other approvals.
Furthermore, RIL and Eros International Media Limited (“Eros India”) announced that they have agreed to partner in India to jointly produce and consolidate content from across India. The parties will equally invest up to approximately $150 million to produce and acquire Indian films and digital originals across all languages.
In addition, it was announced that Ms. Jyoti Deshpande, Group CEO and MD of Eros will be stepping down from her Executive role after more than 17 years in Eros and move on to head the Media and Entertainment business at RIL as President of the Chairman’s Office. Ms. Deshpande will start her role at RIL from April 2018, but will continue to remain as a Non-Executive Director on the Board of Eros. Mr. Kishore Lulla will resume his position of Group Chairman and CEO of Eros.
In her new role at RIL, Ms. Deshpande will lead the company’s initiatives in Media and Entertainment to organically build and grow businesses around the content ecosystem such as Broadcasting, Films, Sports, Music, Digital, Gaming, Animation etc., as well as integrate RIL’s existing media investments such as Viacom and Balaji Telefilms with a view to build, scale and consolidate the fragmented $20 billion Indian M&E sector.
Mukesh Ambani, Chairman & Managing Director, RIL commented, “We are pleased to join hands with Eros, as it will bring further synergies into our plans, making for a win-win partnership. We are delighted to welcome Ms. Jyoti Deshpande into the Reliance family and believe that she will not only give wings to our plans but also play a pivotal role in transforming the sector.”
Commenting on the development Mr. Kishore Lulla said, “I am very pleased that Eros is partnering with RIL in its entertainment journey with several synergies across technology, content and digital with Eros Now. We look forward to collaborating and growing as we continue to make new strides on the digital and content forefronts. I am confident that together, we can make a meaningful difference. Jyoti Deshpande has been an invaluable part of the incredible Eros growth journey and I am confident that she will make a positive impact on the industry in her new role at RIL. I wish her the very best of luck.”
Ms. Jyoti Deshpande commented, “Having worked and associated with Eros group since 1998, it has been an integral part of my professional career and I extend my heartfelt thanks to Kishore Lulla and the Eros family for the opportunity to build an amazing company together. I am delighted that RIL has strategically aligned with Eros, so the association continues. My new assignment at RIL will allow me to push boundaries, set new standards of excellence, assemble a world-class young leadership team and adopt a collaborative approach to architect and execute this ambition in true RIL tradition. I am genuinely honored and humbled to have been granted this opportunity but more than anything I cannot wait to roll up my sleeves.”
RIL is India’s largest private sector company, with a consolidated turnover of INR 330,180 crore (USD 50.9 billion), cash profit of INR 42,800 crore (USD 6.6 billion), and net profit of INR 29,901 crore (USD 4.6 billion) for the year ended March 31, 2017.
RIL is the first private sector company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 203rd in terms of revenues, and 110th in terms of profits. The company stands 106th in the ‘Forbes Global 2000’ rankings for 2017 – the top-most among Indian companies. It ranks 10th in LinkedIn’s ‘Top Companies Where India Wants to Work Now’ (2017). RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.
About Eros International Plc
Eros International Plc (NYSE: EROS) is a leading global company in the Indian film entertainment industry that acquires, co-produces and distributes Indian films across all available formats such as cinema, television and digital new media. Eros International Plc became the first Indian media company to list on the New York Stock Exchange. Eros International has experience of over three decades in establishing a global platform for Indian cinema. The Company has an extensive and growing movie library comprising of over 3,000 films, which include Hindi, Tamil, and other regional language films. The company also owns the rapidly growing OTT platform Eros Now. For further information please visit: www.erosplc.com.
About Jyoti Deshpande
Ms. Jyoti Deshpande has over 25 years of experience in media and entertainment across advertising, media consulting, television and film. She has been part of the leadership team of Eros International Plc since 2001 and as Group CEO & MD she has spearheaded Eros’s growth as a global leader in Indian filmed entertainment. Prior to joining Eros in 2001, Ms Deshpande has worked for 7 years in the field of advertising, media consulting and television with companies such as J Walter Thompson India, Mindshare, Zee Television and B4U Television. Ms. Deshpande has a Bachelor’s Degree in Commerce and Economics from Mumbai University and a Master’s Degree in Business Administration (MBA) from SPJIMR, Mumbai University.
Ms. Deshpande was featured in the prestigious Fortune India magazine’s 50 Most Powerful Women in Business (2017/2015) which celebrates the journeys and triumphs of women who not only impact their organizations but are also thought leaders in their industry. Ms. Deshpande was also featured in the list of Top 50 Most Powerful Women in Business by Business Today (2015). She was also recently awarded as one of the Women of the Decade for Innovation and Leadership by Women Economic Forum.