'Prachar' pitches for the top  ( November '5,2003, ET)

Why does a small operator like Rajesh Jain, managing director, Prachar Communications, become relevant in a segment dominated by giants such as Mindshare, The Media Edge and the rest?

After all, the turnover of Prachar at Rs 200 crore, is just what one big advertiser may fork out for a quarter! Yet, it’s exceptions such as Jain, who have taught the bigger players the art of nimble-footed negotiations.

A trained chartered accountant, Jain found enough opportunity to wield his number juggling skills as early as 1993. Today his clients include the Emami group, Lux underclothing, Polar Fans, Link Pens, ADD Gel Pens, Today’s Pens, Liberty shoes, Archies cards, Siyaram suitings, Binny shirting, Casper coils, Fresh Ones, and the Japanese luggage brand Echolac.

In1998, he picked a 52-week deal on ZEE TV for Koshish at Rs 20,000 for 10 sec and this shot up to Rs 1.2 lakh. This year he says he bought a deal on Aaj Tak for Rs 1,700 for Siyaram, while he claims that MindShare bought the same spots for another brand at Rs 3,000.

Of course, media stalwarts have enough reason to knit their brows and be sceptical. Says one observer: “There are small players who do business on the basis of relationships. They like to wait and buy cheap on channels, which is not good for the long-term, growth.”

Says Jain, “I am an accountant and no one can accuse me of not knowing numbers. I use the same principles such as the P/E ratio, the advantages of portfolio management to try and identify situations where there’s limited share capital. I seldom get into situations that are over-bought.” There are cases where he’s bought high — he picked up the India-New Zealand series for Rs 5 crore as cricket is always a good buy. But with the same game on DD, he did not go for the price being asked by Nimbus of Rs 1.5 lakh; just two days before the game, he got it at a rate of Rs 75,000. But he also admits to occasional defeats: he misjudged the potential of KBC and had to buy later at a high price.