The Hindu Business Line : Bollywood looks to co-production to lower risk impact

Co-production is not merely about collaborating but a risk mitigating measure that is gaining importance for the Indian film industry faced with the vagaries of box office performance.

Quite recently, a number of filmmakers and film production companies collaborated as partners, thereby sharing the cost of the film and along with it the risks and gains too.

Co-production does improve prospects for bringing in funds through the organised sector, industry representatives say. Institutional financiers are wont to offer funds for co-production film projects as more than one producer is involved.

Shree Ashtavinayak Cine Vision Ltd recently announced plans to enter co-productions. "There is sense in getting into co-productions at least in a few of the projects. It is better business model," said Mr A. Shyamsunder, Chief Financial Officer, Shree Ashtavinayak Cine Vision.

K Sera Sera Production Ltd entered into an agreement with filmmaker Ram Gopal Varma to co-produce or jointly produce movies.

A host of film companies have looked at tying up with filmmakers on various projects.

Apart from better availability of finance, the coming together of production companies on a project possibly helps in making a better assessment of how the film would fare and thereby raise the bar on production qualities.

"The co-production route helps in the creative aspect of filmmaking. It does help in choosing a creative partner through this route. This model makes sense," says Mr Parag Sanghavi, Managing Director, K Sera Sera.

A few of the established film production companies have looked at co-production seriously in a market where too many films and films with similar themes are made competing for the window of theatrical release.

At FICCI-Frames 2006, a discussion on international co-production arrangements pointed out the benefits to both the Indian film industry as well as the international partners. According to FICCI- Amarchand Mangaldas Lawbook, access to international financing, location, expertise and a wider audience would be among the benefits of bi-lateral co-production treaties.

The report said international filmmakers would be encouraged to pool their creative, artistic, technical, financial and marketing resources with their Indian counterparts.

"More Indian locales would be utilised even for non-India specific projects, thereby generating employment and encouraging local industries," the report said.

Bi-lateral co-production deals help Indian producers gain better access to finance while foreign filmmakers would have access to low cost post-production facilities.