The Hindu Business Line : Prime Focus to have strategic investor

A string of special effect projects from Bollywood has not only resulted in a comfortable order book for Prime Focus but has also prompted it to look at an initial equity offering.

"An IPO is on the cards; it is graduating to go on to becoming a listed entity," said Mr Namit Malhotra, Managing Director, Prime Focus Ltd, a company which is into digital production facilities catering to the film, television and advertising industry.

The company - promoted by Mr Malhotra and his father, Mr Naresh Malhotra, a Bollywood producer - has entered into a deal to bring aboard a strategic investor. However, he declined from naming the investor or the extent to which the stake is being offered.

Prime Focus is one among the many companies in the entertainment services business that is reaping the benefits of Bollywood warming up to technology. Its order book has a range of film projects including, Aan, Dev, Deewaar, Garv, Gayab, Asambhav, Mujhse Shaadi Karogi and the promos of Hyderabad Blues - 2.

"After films such as Matrix and Lord of the Rings, Indian audiences are exposed to special effects in a big way. Today complex shots are possible without the effort of special effects showing up on screen," Mr Malhotra said.

Prime Focus involvement in each of the projects commences at the pre-production level. "For Gayab, we had a number of meetings with the team from Prime Focus. The team is able to throw up a number of ideas that can be incorporated at the time of shooting," said Mr Prawal Raman, director of the film.

While most of its work is project based, the company decided to become a joint venture partner in Gayab jointly with Ram Gopal Varma and K Sera Sera Productions.

This is possibly the company's first foray into film production business taking on the element of risk. "Projects like these could give us the spike that we need in our top line. If the film does well, my profit goes up," Mr Malhotra said.

Prime Focus, which offers a range of post-production services, operates in all the genre of entertainment - television programmes, commercials, and feature films. Ad films contribute 50 per cent to its revenue.

The company is also seeking outsourced work from overseas clients. "We can offer work at one-fourth the cost in some of the US post-production houses," Mr Malhotra said.

With heightened activity primarily from Bollywood, investments in infrastructure have become imperative prompting Prime Focus to look at an IPO.