Wednesday, February 7, 2007

UTV, Future Group in talks for retail JV

Entertainment and media company UTV Software Communications and Future Group (Pantaloon Retail) are in talks to float a retail venture together. The blueprint for the project is to open Cafe Lounges as a brand extension to UTV’s upcoming youth centric channel in June. The Cafe Lounges targeted at the youth will be a fusion of entertainment, gaming and a lounge where youngsters can relax. While UTV will use its strength in the entertainment and broadcasting space, the Future group will use its expertise in the retail domain to jump start this venture.

The Cafe Lounges will be a brand extension of UTV’s youth centric initiatives and will use these to attract the youth both in terms of footfalls to these outlets as well as to ensure eyeballs on the channel. Work on this front has already begun, and placement agency sources also confirmed that UTV has started recruiting people from the retail and cafe space. The retail outlets planned would act as entertainment zones encompassing all the youth initiatives including the channel. Twenty two cities have been identified, and currently locations for the outlets are being tied up. The partnership between UTV and the Future Group would either be a lease and profit sharing model or a joint venture company, still being discussed by both parties.

Read The Economic Times article.

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