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| Kavithalaya in talks with PE funds |
| T E Narasimhan / Chennai Sep 29, 2009, 00:47 IST |
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Chennai-based Kavithalaya productions, owned by the veteran director K Balachander, has said that it is in talks with private equity (PE) funds to support its proposed investment plan of Rs 100 crore, over the next three years. Besides, the company is also planning to launch a venture capital fund to support upcoming directors in the film industry.
Speaking to Business Standard Kandaswamy Bharathan, executive director, Kavithalayaa Productions said since 1981 the company was into film production and then added television content into its bouquet. “It is time for us to move forward and to become an integrated player.”
Apart from producing contents for movie and televisions the company is now planning to produce content for mobile and internet users through new media business, which is expected to contribute 50 per cent of the business in the next three years. The company has joined hands with an US-based company to access technology and also prepared business model for its new media business foray. Bharathan did not disclose the partner’s name.
The proposed diversifications would help the company become a Rs 200-crore company, from the current Rs 45 crore, over the next five years, he added. The company is planning to invest Rs 100 crore over the next three years mainly to produce content. “We are looking for partner to distribute content and a private equity partner for the proposed diversification and investment,” Bharathan did not comment on the percentage which the company is planning to dilute and the quantum of money to be raised.
Company’s founder Balachander, considered to be the guru of leading artist in Tamil and Telegu, in his career introduced famous actors including Tamil super star Rajinikanth, Kamal Hassan and Prakashraj. He would now introduce the concept of PE to south Indian production houses, which are known for being conservative.
Speaking about movie production, Bharathan said, major portion of the Rs 100 crore would go towards content production. The company which was traditionally focusing on Tamil, Telegu, Kannada and Malayalam is now planning to produce movies in Hindi and English languages.
It is also planning to produce Indian English movies targeting Non Resident Indians (NRIs), he added.
The company which has 57 films in its library is now planning to rerelease some of the selected movies both in selected domestic and overseas markets. Of the total movies, 60 per cent were hit and some of them were super hit.
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