ZEEL Shareholders Rejects Reappointment of Punit Goenka as Director

Zee Entertainment's shareholders have rejected a move to reappoint Punit Goenka as director, according to a regulatory filing from the business.

Goenka recently resigned as managing director and withdrew his consent to be reappointed, which was originally scheduled for the November 28 AGM. Goenka will continue to serve as CEO for a five-year term until 2029 in spite of these changes.

Another significant move was the Zee board's approval of Saurav Adhikari's nomination as an additional director, serving as a non-executive director, with effect from November 29. Member approval is required for this appointment, which was suggested by the Nomination & Remuneration Committee.

Goenka presented his vision for ZEEL's future at the AGM, emphasizing the need to ensure long-term sustainability while enhancing short-term performance. He restated the company's dual goals of maintaining profitability with solid margins and producing alluring returns for shareholders. He identified three pillars—frugality, optimization, and high-quality content—as the foundation of ZEEL's operating approach.

Goenka acknowledged issues including a muted advertising landscape and pointed out that ad spending was dropping in industries like direct-to-consumer companies, gaming, and FMCG. He did point out that certain revenue pressures had been lessened by the implementation of New Tariff Order (NTO) 3.0, which allowed for inflation-linked increases to subscription prices.

Notwithstanding these challenges, ZEEL has solidified its position as India's second-largest entertainment network thanks to its increasing viewership in important markets. Goenka said she had faith in ZEEL's capacity to adjust to a changing competitive environment and achieve steady growth going forward.

Since the intended merger agreement with Sony Pictures Networks India fell through, ZEEL has had difficulties, which have forced the company to reduce expenses and streamline operations.

The company reduced its personnel by 15%, impacting over 700 of its 4,500 employees in a variety of activities, in order to reach its goal of an 18–20% EBITDA margin. Half of the employees at its Bengaluru-based Technology & Innovation Center had been let go.

"As anticipated, Punit Goenka's reappointment did not receive the necessary number of votes because shareholders are upset that the company was unable to complete the merger with Sony while he was in charge." The founder and managing director of InGovern Research Services, Shriram Subramanian said that the board should reflect on the company's direction and leadership.