Media firm Deccan Chronicle Holdings Ltd (DCHL) is merging two of its subsidiaries including the owner of its Indian Premier League cricket club Deccan Chargers Sporting Ventures Ltd and specialised retail venture Odyssey India Ltd.
The two wholly owned subsidiaries of the publisher of newspapers, such as Deccan Chronicle and Financial Chronicle, had posted net loss of Rs 41.92 crore for the year ended March’10 on revenues of Rs 138.8 crore. DCHL is estimated to have invested around Rs 116.8 crore in Odyssey and Rs 50 crore in Deccan Chargers as equity.
Started in 1995, Odyssey opened its flagship bookstore in the southern suburbs of Chennai in Adyar. Overtime it has diversified its business into various specialised lifestyle retail formats.
According to its website, Odyssey operates in 13 cities through 58 stores at present that includes 50 Odyssey Stores besides other formats. These include two optical eyewear store under The Eyewear Stores, five premium and luxury writing instruments store branded as Editions and one toy store under Toyopia.
The merger of Odyssey with the parent was long pending say analysts. This had also ramped up stock price of DCHL a few years ago when retail was in flavour in the market generating high valuations. Although no such premium is tagged with the sector as of now, a merger could be prompted by better bottomline picture for the retail arm. This could also be true for the cricket club being less of a drain on resources or potentially making money from hereon.
Deccan Chargers that won the second edition of the domestic T-20 cricket league had roped in England’s Kevin Pietersen and Sri Lankan Kumar Sangakkara in the refreshed side during the player auctions early this month.
