The Conde Nast group of the US, which brings out a string of top end lifestyle publications, has decided to bring two of its best-known magazines, Vogue and Glamour, to India through a 100 per cent subsidiary.
Conde Nast Asia Pacific, through which the investment into India will be routed, plans to acquire BVA Publishers Private Ltd, an Indian printing house, from Bahram N Vakil and Alka Nalavadi.
Conde Nast, which posted a turnover of $2 billion in 2004, will initially invest about $5 million, either directly or through affiliates in the Indian company. It also plans to pump in additional equity in the Indian operation when required.
It has applied to the information and broadcasting ministry and the Foreign Investment Promotion Board for permission to acquire BVA.
The government's media policy permits 100 per cent foreign equity in non-news and non-current affairs specialty magazines. About 50 specialty publications have already been given permission to set up shop in India.
Once it acquires BVA, Conde Nast will licence the two brands to the subsidiary, which will pay an annual royalty to the US company based on its subscription, wholesale and advertising revenues.
Conde Nast will draw on Indian expertise to run its operations here. The editorial content will be localised to meet local requirements.
At present, Advance Magazine Publisher Inc, the parent company of Conde Nast, has a licensing agreement with Aroon Purie's Living Media to print and publish Indian editions of Golf Digest and Golf World.
Conde Nast has given an undertaking to the Indian government that this tie-up will not be affected by the launch of its own operations in India.
Conde Nast Group, founded in early 20 century, launched its flagship magazine, Vogue, in the US in 1892. Since then, it has launched over 100 magazines and 63 Web sites.
It also publishes magazines --directly or under licences -- in various countries and has a readership base of over 120 million. Other magazines published by the group include The New Yorker, Vanity Fair, GQ, Brides, Cargo, House & Garden and Teen Vogue.
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