The Hindu Business Line : Eros forms jt venture with Ayngaran

Mumbai, July 12 Integrated media company Eros International has forged a 51:49 joint venture with Ayngaran, which has a dominant share in the content and distribution industry.

Eros will have a 51 per cent majority shareholding of Ayngaran International Ltd, the newly incorporated holding company that is acquiring the business, goodwill and assets of Ayngaran, subscribed for a nominal sum.

The transaction will give Eros access to Ayngaran’s library of over 600 films, while securing rights to approximately 25 new films already in development.

The deal, following Eros’s recent announcement of a 76 per cent rise in full-year profits, forms part of a strategy to pursue partnerships and acquisitions in the film industry.

Mr Kishore Lulla, Chairman & CEO, Eros International, said: “Ayngaran is the Eros of Tamil films. The business is in the same stage as the Hindi film segment was 10 years ago, poised to expand rapidly.”

Mr K. Karuna Moorthy, Chairman of Ayngaran, said: “Aligning with Eros will allow us to accelerate our growth and become a global player in Tamil films by maintaining and building on our competitive advantage.”

Eros will provide an initial funding of $33 million through internal and external sources to take over and grow the existing business as well as to produce, acquire and distribute forthcoming Tamil films based on agreed forecasts and targets.

More Stories on : Strategy | Alliances & Joint Ventures | Cinema

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