Independent News & Media has been linked with the radio division of Indian media group Jagran Prakashan, in which it already holds a 20 per cent stake.
The Irish group is believed to be acquiring a 20 per cent stake in Shri Puran Multimedia, which has eight licenses to operate radio stations in India.
A spokesman for Independent News declined to comment on Shri Puran, but confirmed the company was looking at opportunities in the radio sector in India.
He said any interest by the Irish group is likely to be modest.
The private radio market in India is still small, but it is starting to grow. Narendra Tripathi, who was recently appointed as chief executive of Shri Puran, has said considerable growth can be expected in the sector, in particular in advertising.
Radio, he said, has widespread potential in terms of reach and affordability.
Shri Puran plans to launch three radio stations in Gorakhpur, Karnal and Hissar by the end of this year and another two in January. The remaining three will be launched in February and March next year. The company also has plans to introduce six more radio stations in the future, according to reports.
Jagran Prakashan, which publishes India's popular daily newspaper, the Hindi-language Dainik Jagran, last month reported profit after tax of €4 million in the first quarter. Revenue increased 20 per cent, to €24 million.
The company attributed the gains to improved advertising revenue and higher circulation.
Indian news reports also said yesterday that the group is planning to launch a new newspaper next month priced lower than its flagship Dainik. The launch, as well as the growth in its internet portal, event management, messaging service and outdoor advertising businesses, is expected to help revenue increase by 20 percent in the year to March 2007.
Independent News & Media, which also has interests in Australia, New Zealand, Britain and South Africa, reported a 17 per cent rise in profits last year.
In June it said earnings in the first half of this year are likely to be more than 10 per cent ahead of the same period last year.
At the annual general meeting in June, chief executive Sir Anthony O'Reilly was upbeat about growth in the firm's Indian investment and expressed an interest in acquisitions in eastern Europe. The company is also known to be considering possibilities in Russia.
