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Mukta Arts Ltd.

BSE: 532357 Sector: Media
NSE: MUKTAARTS ISIN Code: INE374B01019
BSE 00:00 | 24 Jan 43.65 -2.25
(-4.90%)
OPEN

46.90

HIGH

46.95

LOW

43.65

NSE 00:00 | 24 Jan 43.45 -2.25
(-4.92%)
OPEN

47.00

HIGH

47.00

LOW

43.45

OPEN 46.90
PREVIOUS CLOSE 45.90
VOLUME 7350
52-Week high 65.35
52-Week low 25.60
P/E 20.21
Mkt Cap.(Rs cr) 99
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 46.90
CLOSE 45.90
VOLUME 7350
52-Week high 65.35
52-Week low 25.60
P/E 20.21
Mkt Cap.(Rs cr) 99
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mukta Arts Ltd. (MUKTAARTS) - Chairman Speech

Company chairman speech

This year has been a year of consolidation and development for your company. Manyinitiatives taken this year will surely blossom into strong performance in the comingyears and I am very optimistic about the future course of the company and the developmentof our main areas of business.

The Media and Entertainment industry has continued to outperform the economy. Overallgrowth has been 12.6% against GDP growth of around 6%. Film and music have seen excellentgrowth with Film growing at 21% and Music at 18% according to the latest FICCI report. TheIndian box office continues to grow from strength to strength with a host of filmperforming extremely well. Content has been the key with audiences willing to accept newstorylines as well as traditional commercial films. It's an exciting time to be in ourbusiness.

The year has again seen Mukta Arts Limited grow overall. Our top-line continues toincrease, growing over 20% in key revenue generating areas so that the company can againpost record income of Rs 2626.29 millions in the financial year just completed. Profitsare down from last year, which was on account of other income, but the company continuesto be profitable overall and is building for the next phase.

I have spent most of this year preparing and shooting my next project. 'Kaanchi' is afilm that I have great expectations from. It is a movie that I believe will strike astrong chord with audiences given its subject and storyline. 'Kaanchi' stars RishiKapoorand Mithun Chakaravarty in pivotal roles but it's the fresh cast that I am extremelyexcited about. Mishti and Karthik both have huge potential and I believe that post thisfilm, they will be big stars.

Filmmaking has always been my greatest passion and the return to doing what I love themost has reinvigorated my love for the movies. Along with my own film, this year we haveannounced a film with Dharmendra, Sunny Deol and Bobby Deol titled 'Ishq De Maare' as wellas a sequel to our hugely successful comedy 'Apna Sapna Money Money'. In addition we havecontinued our regional focus with films in Marathi, Kannada and shortly Punjabi.

Our Marathi film, 'Samhita' has won a host of awards from festivals in which it hasbeen showcased including MAMI in Mumbai and IFFK in Cochin. The film has also won twoNational Awards - for best female playback singer and best music direction. It gives us asense of great pride and I believe regional cinema is a place of great growth.

Other significant events this year include a joint venture creation with UFO Moviez.Mukta Movies is recognized as one of India's leading distributors and also one of theleading programmers of films for cinemas. Your company does programming for over 450screens and our deal with VN Films Pvt. Ltd (subsidiary of UFO Moviez India Ltd) means wewill significantly add to that whilst still remaining the major shareholder. UFOthemselves bring significant strengths to the new company and together I am sure the newventure will create great value.

Exhibition continued to be our major investment this year. Mukta Cinemas is now presentin three locations -Baroda, Ahmedabad and Gulbarga, which opened in January this year. Wewill be quickly adding Vizag and our first Mumbai theatre in August and our pipeline meanswe should reach 12 plus locations by the end of the next financial year in locations likeLalbaug, Sangli, Aurangabad, Kundli (Haryana), Raipur, Bhopal, Selu and Ambernath as wellas adding two more theatres in Mumbai - one in Goregaon and one in Panvel.

Mukta Cinemas is concentrating on a partnership model rather than paying out largerents as overheads. This allows us to continue to be profitable even if a poor box officeperiod persists. Also, we are sourcing the materials for our multiplexes from the bestvendors at the best prices ensuring little wastage in set-up costs. This control onexpenses added to our shrewd sense of picking up properties in strong segments means ourpayback period of investment is greatly reduced.

Ahmedabad and Baroda have established themselves as excellent performers in theirlocalities and have built a strong clientele and repeat audience. Gulbarga is a largertheatre where the programming mix differs but slowly it is becoming the leading theatre inits area as well. Mukta Cinemas is focusing on delivering a world-class cinema-goingexperience to all our patrons and this culture is what we are moving forward stronglywith. I am extremely excited about this venture.

Whistling Woods International (WWI), despite all the odds, has continued to live up toits reputation of being one of the best film schools in the world. This summer, the schoolhas opened its doors to over 200 new students, which is the best intake ever. Theinstitute has managed to plan a host of new feathers in its cap over the past year andcontinues to do us proud. The institute is now almost breaking even on a cash basis andsome of this year's initiatives should finally see it profitable.

WWI signed a deal with DY Patil Institute, one of India's biggest educational players,to open a second campus in Pune. The courses start in August 2013 and this will generatemore students across WWI courses without any investment from the institute. Thispartnership is a first step to what we believe can be a huge springboard for the WWI brandand I am thankful to Dr. Ajeenkya Patil for placing his faith in me and my team.

Further, WWI will open its first international campus in September 2013 when theBradford-WWI Film School opens. Bradford College, drawing on WWI's goodwill and expertise,will combine its successful photography and make-up programmes with a new three year filmcourse to form one of the UK's brightest new Film and media schools.

WWI has also formed a new joint venture with renowned fashion designer Neeta Lulla toopen the Whistling Woods-Neeta Lulla School of Fashion. Fashion designing is an extremelypopular course and we are confident that with WWI's expertise and infrastructure coupledwith Neeta's understanding of the industry, we will have a school that will rival the bestin the country. The courses begin in September 2013 and I am sure this will be anotherpromising area for the Institute.

We are hoping that the Review petitions pending in the High Court on the issue of theJV under which land was allotted to WWI is heard favorably and WWI is allowed to continuein its prestigious campus. We are committed to ensure that the Students Education is notdisturbed and would address the issues within the legal framework to help find appropriatesolutions. WWI is now a well established Brand and acknowledged to be offering goodquality Creative and Technical Education in the space of Media, Entertainment, Film andAnimation. It continues to be rated as among the Top Film Schools in the World anachievement we can all be proud of.However, we are also working on other plans, should thecourt order have to be executed in its fullest.

WWI now has graduated over 1000 students into the industry and at the most recentConvocation event where over 200 students graduated, Mr. Amitabh Bachchan our guest ofhonour and one of the Maestro Awardees lavished high praise on the institute, the team andthe students. The industry is with us in this endeavor and I know you all are too.Theother Maestro Awardees were Shiv-Hari (Pt. ShivkumarShankarand Pt. Hari Prasad Chaurasia)and the key-note address to students was delivered by Mr. Anand Sudarshan, former CEO ofManipal Global Education.

As I said at the start, I believe we are now moving toward higher levels of performanceand this year will be seen as the start of that upswing. Movies, cinemas, distribution andeducation are the pillars of your company and I firmly believe they are growing strongerand stronger.

Subhash Ghai

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