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General News Shop CJ to merge with HomeShop18 to create a TV shopping giant
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[Image: SHOP-CJ-Logo.jpg]MUMBAI: India’s second-largest TV home shopping network Shop CJ will merge with its bigger rival Homeshop18 to create India’s largest TV home shopping network.

The combination will be effected by way of a share swap wherein the shareholders of Shop CJ will be issued 25% equity stake in HomeShop18, making Shop CJ a subsidiary of HomeShop18.

Following the transaction, HomeShop18 will cease to be a subsidiary of Network18 Media & Investments. However, Network18 will continue to be the largest shareholder in the combined entity.

With two big players in the market coming together, the only other significant player in the market is Naaptol, which has been steadily expanding its fleet of channels by entering regional markets.

“The board of directors of TV18 Home Shopping Network Limited (‘Homeshop18’) and Shop CJ Network Private Limited (‘Shop CJ’) approved entering into a definitive agreement to combine the businesses of both entities,” Network18 said in a statement.

Shop CJ is a 50:50 JV between South Korea’s CJ O Shopping and PE firm Providence Equity Partners while Homeshop18 is a part of Network18 housed under the subsidiary company TV18 Home Shopping Network.

The transaction is aimed at uniting two of India’s top home shopping players, to create the largest home shopping platform in the country, the company added.

The merger will offer scale to Homeshop18, which will allow it to improve its standing in the TV home shopping landscape and compete better with the challenge from e-commerce players.[Image: homeshop118.jpg]

“HomeShop18 has optimised its operations substantially since the challenges faced in the last year. We believe multiple synergies with respect to sourcing, marketing and delivery can be exploited through a combination with Shop CJ, which shall further accelerate this process,” the company added.

TV18 Home Shopping Network operates a single channel named HomeShop18 while Shop CJ has three channels, namely Shop CJ, Shop CJ Tamil and Shop CJ Telugu.

In fiscal 2017, TV18 Home Shopping Network had posted a net loss of Rs 153.1 crore on a revenue of Rs 318 crore while expenses stood at Rs 470.7 crore. The financials of Shop CJ are not available in public domain since it is a private company.

Teleshopping market in India is projected to exhibit a CAGR of 17.20% during 2016–21, according to a recent research report by Research & Markets.

Teleshopping market in India grew significantly over the past few years owing to increasing disposable income, ease of shopping, rising television penetration in the country, it stated.

Moreover, increasing offerings by private label brands at affordable prices, growing discounts and offers, as well as a rising working population are other factors driving teleshopping market in India.

In July 2016, Homeshop18 had raised an undisclosed amount. Earlier, in April 2013, the company had raised $30 million from hedge fund OCP Asia and Network18 in equal proportion.

Source:

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Airtel Digital HD Recorder / Kerala Vision Digital TV
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