The Hindu Business Line : New year may see US studios entering India

THE changes in the Hindi film industry have opened up possibilities not only for alternative themes but also for filmmakers of all genres. The metamorphosis of this industry could also see the entry of US studios into India.

"The door is opening to all kind of filmmakers. Previously, connections determined the success of your film. Today, most films made efficiently, manage to recover their costs," Ms Vinta Nanda, filmmaker, said.

"The power structure has shifted to new people," Mr Amit Khanna, President, Film & Television Producers Guild, said. He is also the Chairman of Reliance Entertainment Pvt Ltd. In June, Reliance Capital had acquired a 51 per cent equity stake in Adlabs Films Ltd for Rs 360 crore. Adlabs later signed on director Ram Gopal Varma to anchor a series of films totally costing Rs 80 crore. Sahara One announced its participation in producing a Hollywood film. The principal photography of `Marigold,' a co-production between Adlabs and US-based Hyperion Pictures has been completed. And of great interest to all was Sony Pictures' deal with director Sanjay Leela Bhansali. "It could eventually signal the entry of US studios into India,'' Mr Sunir Kheterpal, Head (Media & Entertainment Banking), Yes Bank, said.

If five years ago, corporates in Bollywood was dismissed as a case of optimistic bankers shouting themselves shrill, at present, the enhanced transparency and security of investment are what lends the 2005 growth story a touch of permanence. Yes Bank had estimated that the share of non-traditional funding in the production of the top 50 films of 2004 would be over 50 per cent.

This year, that figure is projected to touch 65-70 per cent. "The buoyancy should continue given the ongoing growth in multiplexes and the fresh round of equity funding for companies in the entertainment business,'' Mr Kheterpal said. Private money has moved into Adlabs. UTV and Shringar Cinema went in for IPOs and PVR Ltd and Inox Leisure also propose to go for IPOs. Film maker Ram Gopal Varma is also entering the capital market to raise Rs 100 crore through an initial public offer from his company RGV Film Factor Ltd.

For an industry previously held ransom by its dubious funding and unpredictable stars, the quality of its passage into 2006 should be heart-warming. It is now up to Bollywood to keep that going.

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