New Delhi: Indian Animation is making waves with films like Hanuman finding acceptance not just in the domestic market but also in the international animation arena. India has the world’s largest entertainment industry, a robust software industry and skilled manpower, which fuel the growth of the animation and special effects industry
According to an independent trade survey conducted recently, the Indian animation industry, which is now pegged at $550 million (Rs2200 crore) is expected to grow at 30% annually in the next couple of years and reach a level of $1.5 billion by 2010.
Leader of the pack
Compact Disc India Ltd (CDI), South Asia’s largest 3D animation film outsourcing company, will list its newly incorporated company MediaOne Ventures Limited at the Alternative Investment Market (AIM) of the London Stock Exchange this year. This overseas listing will facilitate in raising $50 million (Rs200 crore) to uniquely position CDI in the international film production market.
At an initial investment of one million pound, MediaOne Ventures Ltd. has been launched to cater exclusively to the international film production division of CDI. This newly formed company is largely structured to produce live action and animation films for an international audience that is either wholly or jointly produced with Hollywood production houses.
Through MediaOne Ventures Ltd., CDI plans to make four international film projects every year which will either be fully owned or co-produced with leading Hollywood film production companies. The company has appointed one of UK’s largest law firms, Howard Kennedy and investment bankers, Society General Hambros for the purpose.
The launch of MediaOne Ventures Ltd. will mark CDI’s foray into the booming business of Intellectual Property Rights (IPR). After having secured the IPR for animation content, the company can cash in on the collaterals accrued by way of merchandise.
Positioning in global film market
Mr Gautam Seengal, Managing Director, CDI, confirmed “We intend to position CDI as an international film maker and an overseas listing will facilitate joint ventures, acquisitions, alliances in major international markets with global film companies. With our close association with media majors like Canyon Films, Pantheon Entertainment Corp., Hyde Park Films and Working Titles Films we will have an advantage in the global film market.”
CDI has signed $20.15 million (Rs80.60 crore) deal to co-produce a Hollywood animated film Goaaal! with Motion Pixel Corporation (MPC), a Los Angeles based film production house. Besides producing a live action English film, Guru of Sex, starring Sir Ben Kingsley and written by Farrukh Dhondy, they are negotiating with two other film production houses.
This would be in line with their plans of co-producing four international film projects each year. Both Goaaaaal! and Guru of Sex, though signed by CDI, will be transferred to MediaOne Ventures. The sales revenues for these two films are estimated to be over $200 million(Rs800 crore).