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January 16, 2006

Can the Indian film industry scale?

Businessworld has a detailed cover story on the Indian film business, the major players and the challenges facing them.

PVR Cinemas, Yash Raj Films, UTV Software Communications, Adlabs, Sahara, Pritish Nandy Communications (PNC) and Percept Picture Company are among over a dozen companies finally emerging out of the wilderness. Most are putting their bets on becoming conglomerates with a hand in everything - production, distribution, retail, the overseas market, home video and so on. Over the last 24 months, investors have put in between Rs 1,500 crore and Rs 2,000 crore into the expansion plans of these companies. There is an entire ecosystem - investors, Internet, technology, marketing and advertising firms - that is building up around the film business. Companies like Spice, Epigram, Group M and Madison Mates (marketing); Interactive Television (a theatre activation company); Prime Focus, Pixion and Autodesk (post-production and special effects); and Hungama, Indiatimes and MSN (digital promotion) get a juicy chunk of their revenues from films.

Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.