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Surge in funds, foreign investments marked 2006

(From left) Mr Yash Chopra, Chairman, FICCI Entertainments Committee, Mr Priyaranjan Dasmunsi, Union Minister for Information & Broadcasting, Mr Paolo Gentiloni Siliveri, Italy's Minister of Communication, and Mr Habil Khorakiwala, President, FICCI, at the inaugural session of FICCI Frames 2007 in Mumbai on Monday. — Paul Noronha

Mumbai March 26 The Rs 43,700-crore entertainment and media industry is poised to see heady days ahead.

Increasing market penetration, technological advancements, new platforms for content delivery and a surge in foreign and private equity fund investments will be fuelling growth of this sector in the coming years.

This was the dominant view of experts who participated on the first day of the three-day FICCI Frames 2007 here on Monday.

The experts were drawn from the entire spectrum of the entertainment and media industry.

The event, which is the eighth edition of the FICCI series, was inaugurated by the Union Minister for Information and Broadcasting, Mr Priyaranjan Dasmunsi.

A FICCI report on the industry, prepared by PricewaterhouseCoopers, which was released at the inaugural session, estimates that the industry could balloon to Rs 1 lakh crore by 2011, translating into a cumulative growth of 18 per cent in the next five years.

Among the segments in the industry, the television sector is expected to continue to contribute the largest share, as was the trend in the last three years.

"The television industry revenues are expected to grow from the current size of Rs 19,100 crore to Rs 51,900 crore by 2011, implying a 22 per cent cumulative annual growth in the next five years," the report said.

The print media too is projected to grow from the current size of Rs 12,800 crore to Rs 23,200 crore by 2011, mirroring a 13 per cent annual growth.

This sentiment is boosted by the growing interest in India among the global investor community, with the foreign media too evincing interest in investing in Indian publications.

The film industry, which is currently placed at Rs 8,400 crore, is expected to touch the Rs 17,500-crore mark by 2011.

"The industry is getting increasingly corporatised. Several film production, distribution and exhibition companies are coming out with initiatives to set up more digital cinema halls in the country."

Significantly, the entertainment and media industry saw the maximum flow of foreign investment in 2006, with 13 proposals cleared by the Ministry of Information and Broadcasting during the year. Another 22 proposals are pending with the Ministry.

The last two years, the report said, have also seen a flurry of funds entering this sector, including 3i, Matrix Partners, Warburg Pincus, De Shaw and T. Row Price International.

Earlier, inaugurating the session, Mr Dasmunsi said that the core groups constituted by the Ministry on the film sector have recently submitted their recommendations.

The need for the film industry to participate in overseas markets and stem piracy formed part of the recommendations.

The Minister said that the Cinematograph Act 1952 was being overhauled and the draft formulation of the proposed amendments would be ready soon.

The Government is going ahead strongly in the realm of signing co-production agreements with other countries.

Mr Yash Chopra, producer and Chairman of FICCI's Entertainment Committee, said that earlier only 200-300 prints of a film were released, while today about 900 prints get distributed across the country.

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