Reliance Industries Limited (RIL) announced a joint partnership with Eros India to co-produce and consolidate content. In a press announcement, RIL agreed to subscribe to a five percent equity stake in Eros to set up Rs 1,000 crore investment.
The deal is subject to customary regulatory and other approvals. After the completion, Jyoti Deshpande, Group CEO and MD of Eros, will step down from her role to head RIL’s media and entertainment business as President of the Chairman’s Office.
RIL and Eros India will together produce and acquire Indian films, and digital originals across all languages. This can also be seen as the company’s efforts at expanding its digital content portfolio.
Deshpande will assume her new role at RIL starting April 2018. However, she will continue to remain as a Non-Executive Director on the Board of Eros. She will lead the company’s initiatives in Media and Entertainment to organically build and grow businesses around the content ecosystem such as Broadcasting, Films, Sports, Music, Digital, Gaming, Animation and more.
The partnership will also see efforts towards integrating RIL’s existing media investments such as Viacom and Balaji Telefilms with a view to build, scale and consolidate the fragmented $20 billion Indian M&E sector.
Mukesh Ambani, Chairman & Managing Director, RIL commented, “We are pleased to join hands with Eros, as it will bring further synergies into our plans, making for a win-win partnership. We are delighted to welcome Ms. Jyoti Deshpande into the Reliance family and believe that she will not only give wings to our plans but also play a pivotal role in transforming the sector.”