Reliance Industries and Eros International have announced that the former through a subsidiary, has agreed to subscribe to a 5 per cent equity stake in the latter at a price of USD15 per share.
The two companies have agreed to partner in India to jointly produce and consolidate content from across India. They will equally invest up to Rs 1,000 crores in aggregate to produce and acquire Indian films and digital originals across all languages.
Jyoti Deshpande, group CEO and MD, Eros will be stepping down from her executive role and move on to head the media and entertainment business at RIL as president of the chairman’s office. Deshpande will start her role at RIL from April 2018. She will remain as a non-executive director on the board of Eros. Kishore Lulla will continues as group chairman and CEO of Eros.
Deshpande's mandate is to lead the company’s initiatives in media and entertainment.
Mukesh Ambani, chairman and MD, Reliance Industries, said, “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 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.”
Lulla said, “I am very pleased that Eros is partnering with RIL in its entertainment journey with several synergies across technology, content and digital with Eros Now. We look forward to collaborating and growing as we continue to make new strides on the digital and content forefronts. I am confident that together, we can make a meaningful difference. Jyoti Deshpande has been an invaluable part of the incredible Eros growth journey and I am confident that she will make a positive impact on the industry in her new role at RIL. I wish her the very best of luck.”
Deshpande added, “Having worked and associated with Eros group since 1998, it has been an integral part of my professional career and I extend my heartfelt thanks to Kishore Lulla and the Eros family for the opportunity to build an amazing company together. I am delighted that RIL has strategically aligned with Eros, so the association continues. My new assignment at RIL will allow me to push boundaries, set new standards of excellence, assemble a world-class young leadership team and adopt a collaborative approach to architect and execute this ambition in true RIL tradition. I am genuinely honored and humbled to have been granted this opportunity but more than anything I cannot wait to roll up my sleeves”.