04 December,2009 08:36 AM IST | | Kranti Vibhute
After running losses for years, BEST makes Rs 63 crore profit from first-ever auction for advertising rights
The Brihanmumbai Electric Supply & Transport Undertaking (BEST) has a multi-crore reason to smile.
Its decision to organise an auction for advertising rights on single and double-decker buses for the first time has worked wonders.
BEST, which had expected to sell the advertising rights for Rs 60 crore, was in for a surprise when Andheri-based Bright Outdoor media company quoted a whopping Rs 123 crore to bag the three-year contract.
The bidding, which started at Rs 60 crore, took place on November 25 at the BEST's main office in Colaba.
Uttam Khobragade, GM, BEST, said, "We decided to hold an auction to ensure better competition and the results were fabulous. BEST made a profit of Rs 63 crore, which will be used for our daily operations.
We function in a transparent manner. We are already doing a lot to improve our services. There are better seats and there is entertainment for commuters because of TV screens inside the buses."
Added Sakhshi Rajesh Ambokar, vice-president, finance, Bright Outdoor, "I attended the bidding with our MD and chairperson, Yogesh Lakhani.
I'm thrilled that the first auction for BEST as well as Outdoor Media paid off. I'm sure the government will benefit.
Around 18 companies, several from outside Mumbai, participated in the bidding, but only five were eligible as per BEST criteria."
4,065
The number of single-decker BEST buses, along with 125 double-deckers, for which u00a0Bright Outdoor won the advertising rights
