The publication major Dainik Bhaskar Group, which earlier created a stir by launching its Gujarati daily Divya Bhaskar, seems to be in an acquisition mood.
In a Rs 7-crore (Rs 70-million) deal, the group has picked up 90 per cent stake in one of the oldest vernacular dailies in Gujarat, Saurashtra Samachar.
Dainik Bhaskar will use the new acquisition to launch Divya Bhaskar's latest edition from highly competitive Rajkot city, hub of Saurashtra region. On Saturday the company had launched it Vadodara edition.
Girish Agarwal, director (marketing), Dainik Bhaskar Group, said that Divya Bhaskar will launch its fourth edition from Rajkot.
He added that the group is also planning to launch the paper from Mumbai, targeting the huge Gujarati population in the metro.
"We will continue with the 'Saurashtra Samachar' brand name, which has a circulation of about 45,000 copies at present. The acquired paper will enable us to enter the Saurashtra region without much effort," said Agarwal.
In order to lure the Gujarati readers to its fold, the Bhaskar group has signed up the prominent Gujarati columnists like Kanti Bhatt and Chandrakant Bakshi from its arch rival dailies.
Divya Bhaskar entered Gujarat with its first Gujarati edition in Ahmedabad in June 2003 and today has four Gujarati editions including Ahmedabad, Surat, New York and Vadodara.
"We have invested a total of Rs 200 crore (Rs 2 billion) in Gujarat including Rs 50 crore (Rs 500 million) in Vadodara, which includes entire set up cost of infrastructure and one year operating cost," said Agrawal.
The inaugural function held at Vadodara was attended by Shankarsinh Vaghela, Union Minister of Textiles and Arun Jaitley, general secretary Bhartiya Janta Party.
"Our first print order is 3,08,000 copies for Sunday and we hope to sustain the same readership base in coming days. The Vadodara edition will also be distributed in Bharuch, Narmada, Panchmahal and Godhra," said Agrawal.
"We have surveyed around 300,000 readers in Vadodara and 200,000 in other part districts with the help of about 800 surveyors to know their expectation from a news paper," added Agrawal.
At present Divya Bhaskar covers 70 per cent of sales potential markets of Gujarat, i.e. 12 districts in Gujarat through the Ahmeabad and Surat edition.
Ahmedabad edition covers north and central Gujarat and Surat edition covers the entire South Gujarat and with the launch of the Vadodara edition, Divya Bhaskar will cover almost 85 per cent plus of the potential markets of Gujarat.
