The objective of this joint-venture is believed to be aimed at keeping imminent competition at bay, as there is strong speculation that the India Today Group is planning to enter the morning paper category, while DNA continues to remain a threat.
"The reasons for exploring an option such as this could include the fact that their individual yields are lower in Delhi than their yields in Mumbai," said Anurag Batra, editor-in-chief and publisher, Exchange4media Group.
"If they collaborate, there is the possibility of growing the market with a sizeable chunk going to a common entity."
The likely target market for the new joint daily is young office workers. "Though still not as evolved as Mumbai, distribution in Delhi is improving, with Metro becoming a strong channel," added Batra.
Asked if there was room for yet another print offering in India, Batra said: "It's not just newspapers — the entire gamut of print is growing. New magazines are being launched and major media barons such as India Today are planning to foray into the print market. There is definitely a place for a niche product in the market."
Hindustan Times declined to comment, while Times of India brand director Rahul Kansal said: "At this point in time, it is all speculation. We are unable to comment."
The projected market size of the print industry of India in 2006 is Rs 6,840 crore (US$2.1 billion) in advertising revenues, accounting for half of the total projected adspend, according to a Madison-Synovate-TAM study.
