Pyramid plans media-centric SEZ

Chennai-based entertainment company, Pyramid Saimira Group, is planning to set up a special economic zone (SEZ) for media-centric, animation and game publishing activities.

The group is currently scouting for a viable locational base, driven primarily by the availability of skilled manpower. It is evaluating Chennai, Hyderabad and Bangalore for acquiring around 800 acre of land, and a blueprint for the proposed project is expected to be ready in the next six months, said managing director PS Saminathan.

Addressing mediapersons here on Thursday, he said the group would invest Rs 250 crore and the project was expected to attract investments to the tune of $2 billion.

"The project will create employment to around one lakh and would service close to 150 films a year, besides creating IPs for games for the Indian market at a suitable price point," he added.

Pyramid Saimira is in the process of raising funds for its expansion plans and has set an investment target of about $1 billion by June this year.

It is also contemplating listing its content production arm Pyramid Saimira Productions International Limited and cine advertising subsidiary Dimple Cine Advertising Private Limited on the Indian stock exchanges, besides listing its content distribution company Pyramid Saimira Entertainment Limited, Singapore, on the London Stock Exchange.

The group, on Thursday, announced its strategic acquisition of UK-based Aurona Technologies, a video games and interactive entertainment software company that has its development centre in Hyderabad, for an undisclosed sum.

This marks Pyramid Saimira's foray into the high-margin animation and gaming industry, besides providing it an entry into the European market. The company currently has presence in India, Malaysia, Singapore and the North America.

Aurona Technologies delivers full game development from India for platforms such as Sony Playstation 2 console, Nintendo DS and PC. It owns the IP of a location-based wireless social community and also owns on a portfolio of six mobile games.

"We see console games as an important segment for multiple revenue exploitation. We have enough physical space available at the 800 properties that we own, spanning across six million sft, of which 2.5 million sft is being used for the box office. We plan to use the rest for food and beverages, retail and gaming and consoles. We expect the gaming business to be a major revenue churner for us in future," Saminathan said.

Stating that the group witnesses huge volume of footfalls at its properties due the low price points, especially in the tier-II and tier-II cities, he said they expected to convert close to 10 per cent of this theatrical population to its gaming initiative.

The company also plans to produce around 70 films, including 30 in Tamil and 12 in Kannada next year, besides creating 10 to 15 native games for mobiles.