Hindu faces Deccan offensive

The Rs 400 crore (Rs 4 billion) Kasturi & Sons, publishers of The Hindu, faces a battle in Chennai, its home turf.

The Hyderabad-based Deccan Chronicle is planning a brand new English daily within the next six months.

The Times of India is also reportedly planning to enter the Chennai market shortly.

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Sources in Hyderabad said the owners of Deccan Chronicle were inclined to come to Chennai with a new brand, rather than introduce Deccan Chronicle, which was the largest circulated English daily in Andhra Pradesh.

T Venkat Ram Reddy, chairman of the board, could not be contacted for comment.

Reacting to the news of Deccan Chronicle's proposed entry into Chennai, N Murali, joint managing director, Kasturi & Sons said, "I do not see Deccan Chronicle as a serious competitor. It cannot replicate its success in the Andhra Pradesh market in Chennai. They are probably targetting the Telugu speaking audience here, as their coverage is highly Andhra Pradesh specific."

"In Andhra Pradesh they are doing very well and have managed to compete well with The Times of India. We are much stronger than them financially and don't expect them to pose any threat to us," Murali said.

Deccan Chronicle has doubled its circulation in Hyderabad in the last three years, fighting off a challenge mounted by The Times of India. The paper halved its cover price and extended its distribution reach.

In preparation for its Chennai debut, Deccan Chronicle is expected to set up its printing unit in Chennai and is constructing its own building.

It has also recently converted itself from a partnership between two brothers into a company with limited liability, and is expected to expand its equity base as well to take on more debt.

Investment details though are not yet known.