Y Not Studios, founded by S Sasikanth has produced 12 feature films in Tamil, Telugu, Malayalam and Hindi, including Vikram Vedha in 2017, said a statement.
While, AP International Films is an overseas distributor and has distributed more than 700 movies and has interests in theatres in the Gulf and the UK, it added.
Commenting on the development, Reliance Entertainment Chief Operating Officer Shibasish Sarkar said: "This will allow Reliance Entertainment to make its presence felt strongly in the vibrant South film market, with production of high quality content."
Sasikanth from Y Not Studios said: "This collaboration will provide a platform that will enable Y Not Studios, which has backed content driven projects,to expand our portfolio not just in the regional segment, but also nationally and internationally."
In the Hindi film industry, Reliance Entertainment has joint ventures with Rohit Shetty Picturez, Plan C Studios (with Neeraj Pandey) and Phantom Films (with Anurag Kashyap, Vikas Bahl, Vikramaditya Motwane and Madhu Mantena).