The Niche and Focused Approach

Ibrahim Ahmed

I am not sure if many of you know that VOICE&DATA is not the only
magazine that comes out of CyberMedia, a specialty media house. Over the last
two decades, CyberMedia has earned several acclaims for its independent
editorial and industry analysis, through its strong publication brands including
Dataquest, PCQuest, Living Digital, DQ Week, Channels India, and bpOrbit. These
publications have established a strong equity in the IT, telecom, and biotech
industries, besides enterprise and the user community.

It's the focused approach-on IT, telecom, and biotech—due to which
CyberMedia has now the confidence and has filed for an initial public offering (IPO)
of 28.22 lakh equity shares aggregating to Rs 17 crore.

CyberMedia, which specializes in the knowledge, media, and associated
services domain had posted an annual turnover of Rs 58 crores for this financial
year ending March 2004 and a profit after tax of Rs 3.7 crore. In the first four
months of the current financial year (April—July), the company registered a
turnover of Rs 20 crore, with a profit after tax of Rs 1.76 crore. Expected to
be offered within a price band of Rs 50—60 each, the issue is likely to open
in early December 2004. This first-ever equity offer by the company to the
public will open to domestic investors and the offered shares are to be listed
on NSE and BSE.

The strategy, to be focused and niche, will continue. The proceeds of the
issue are to be primarily deployed for new projects in high growth avenues,
including foreign strategic alliances to propel business growth in the years to
come. These funds would be utilized to build the necessary infrastructure,
equipment, and marketing expenses of its new initiatives.The company proposes to
launch two international publications thereby becoming the first Indian media
house to launch global publications.

Among its new projects, CyberMedia is planning to upscale its content BPO
business operations in the US and European markets. This would be a significant
move considering that the worldwide BPO market is slated to touch the
trillion-dollar mark by 2006. The Indian BPO industry revenue is expected to
grow by 40 percent during FY 2004—05. Content management is a significant
portion of BPO business.

CyberMedia is planning to launch Global Outsourcing, a magazine that will
reach out to international clients of BPO services. The publication will
comprehensively cover this rapidly expanding market. Global Outsourcing would
address outsourcing issues from a global perspective. There is also a plan
to take BioSpectrum, India's largest biotechnology publication, global-with
its proposed launch in Singapore. This is in line with the phenomenal growth of
biotechnology industry and India's increasing expertise in this arena. The
company has also applied to the Government of India for permission to launch
BusinessWeek in India. This publication would aim at the rapidly growing segment
of Indian companies going global so that they have up-to-date knowledge on
global trends, alongwith an Indian perspective.

Narration of CyberMedia's success story is to drive home the point that
specialization pays. The Indian service providers, sooner or later, will also
have to consider how to attack the market with a more niche and focused
approach.

Ibrahim Ahmed