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K.D. Maheshwari, Managing Director of NS Group—one of the leading OOH companies in Rajasthan and Gurgaon—shares insights into the challenges facing the outdoor advertising sector and about his ambitious plans for expansion into hospitality, sustainability and adventure tourism.
Could you tell us about the NS Group's journey and the diverse markets you cater to today?
It all started with my father 60 years ago. He was a true pioneer in the advertising industry, working across various mediums like newspapers, radio, and television. He even explored outdoor advertising (OOH) – in fact, he was one of the first in Jaipur to venture into this field. However, the outdoor advertising landscape was quite challenging then, with limited infrastructure and resources. He faced difficulties with permits and navigating the complexities of installations. It wasn't as organized or formalized as it is today. So, he strategically decided to focus on other, more established avenues of advertising.
After gaining experience in the fast-paced world of online advertising in Delhi, I joined my father's business in Jaipur. At that point, we only had a couple of OOH sites remaining from his earlier ventures. But I was intrigued by outdoor advertising. I saw its potential to capture attention in a way other mediums couldn't – its constant visibility, its impact on a captive audience. It was a challenge, no doubt, but I was drawn to it. And today, I can proudly say that we have grown to an impressive 22,000 sites across Rajasthan.
But we didn't stop there. We expanded beyond our home state and established a strong foothold in Gurugram. It's a dynamic market, and we have achieved a dominant position there, holding close to a 90% market share.
What were some of the pivotal moments that propelled this growth?
The cellular industry boom was a defining moment for us. When companies like Oasis, which was later acquired by Airtel, entered the market, they needed extensive outdoor advertising to build brand awareness and reach potential customers. We were strategically positioned to meet that demand. I remember giving a presentation at the Sheraton. Securing that deal with Oasis was a game-changer. It gave us the confidence and the resources to expand rapidly.
Government campaigns also played a crucial role in our growth. They recognized the power of outdoor advertising, and we partnered with them on numerous initiatives. In fact, at one point, government spending accounted for almost 50% of the OOH market.
You have spoken about the importance of rural markets in your business strategy. Can you shed some light on the trends you are observing in rural OOH?
We have learned that unipoles, those tall standalone billboards, are highly effective in rural settings. Digital wall paintings have also become increasingly popular. They offer a unique advantage in that they are more permanent – once they are up, they are difficult to remove, ensuring long-lasting brand visibility.
What's interesting is the rise of local businesses utilizing OOH. Hospitals, schools, and colleges in rural areas, which traditionally relied on word-of-mouth, are now embracing outdoor advertising to expand their reach. They are realizing the value of brand building and wider exposure. For example, a hospital in a village might use OOH to attract patients from surrounding villages and schools use it to showcase their facilities and attract students.
On the other hand, we have seen a decline in vehicle advertising in rural areas. It seems that with the rise of mobile phones and digital media, people are less captivated by moving billboards.
Just how significant is the rural market within the overall OOH landscape in Rajasthan?
We estimate the total OOH market in Rajasthan to be around 500 crore rupees, encompassing rural areas, digital displays and wall paintings. Initially, we were hesitant about investing heavily in rural areas, thinking the returns wouldn't be substantial. But we were proven wrong. The rural market turned out to be incredibly receptive to OOH, sometimes even more so than urban areas.
What are some of the most pressing challenges facing the OOH industry?
Government policies can be unpredictable and road construction projects often lead to the dismantling of our sites. We also have to deal with damage from storms and the ever-present issue of theft. Theft is a significant concern, resulting in losses of 20-25 crore rupees in Rajasthan alone, and over 100 crore rupees across India. It's a constant battle to protect our infrastructure. We have tried various measures, but it's difficult to completely eliminate this problem.
Looking ahead, what's your vision for the NS Group? What new ventures are on the horizon?
We are excited about expanding our presence in the hospitality sector. We are developing a magnificent 500-room, fort-themed hotel in Jaipur. It's a passion project for me and we are sparing no effort to make it an extraordinary destination. We faced challenges finding a hotel group to manage it, especially since we wanted it to be purely vegetarian. But we are confident that it will be a success.
Sustainability is also a priority, and we are investing in solar power projects. And to tap into the growing adventure tourism market, we are building tent houses in Ranthambore and Sariska, offering travelers an immersive experience in the natural beauty of Rajasthan.
