The Hindu Business Line : Compact Disc expects to gain $249 m from movie projects

New Delhi, April 1 Compact Disc India, the animation outsourcing company, is expecting earnings of about $249 million from its existing film projects. Reported to be the largest Asian animation company, CDI is also listing its production company MediaOne Ventures on the Alternative Investment Market, London in May and hopes to raise $50-60 million from the markets.

The line up of projects includes a co-production with White Light Entertainment the makers of Jurassic Park and Schindler’s List amongst many blockbusters. The Chairman Mr Suresh Kumar is clear, “No cross over films; no Indian actress in Hollywood films!”

“With Bollywood movies you are only catering to 10-11 per cent of the world market and most movies’ primary earnings are from the subcontinent and in rupees. We are interested in projects that are truly international in scale and scope, where we own or co-own the intellectual property and whose rights can be sold around the world,” said Mr Kumar. The $20 million animation movie Soccer for example will feature football star, Ronaldo in his animated avatar and, Mr Kumar believes, will find a ready audience around the world.

According to Mr Kumar, the co-production with White Light Entertainment, Playing with the Enemy, is expected to make about $159 million for both companies with MediaOne earning almost half of it. Talks are on with a dozen PE firms and banks to raise funds for individual projects for which special purpose vehicles will be created. MediaOne will also be co-producing Shah Jahan, for which discussion are on with Ben Kingsley company. The $15.7 million movie has been written by banker, Mr Vipen Kapoor.

In India CDI will continue to be focussed on the animation outsourcing model. “Revenues from the business grew by 49 per cent during FY 2006-07, with PAT having increases by 515 per cent to Rs 8.17 crore.” According to the company, PAT for 2007-08 is estimated to be to the tune of Rs 21.50 crore with sales revenues at Rs 103 crore. For the following year CDI is targeting sales revenue of Rs 183 crore. “Our excellent growth is due to the fact that we maintain extremely high quality standards and never compromise on delivery, which is key to our business. Each day of delay for a 15 month project could cost us as much as 10 per cent of our contract value” said Mr Kumar.

More Stories on : Outlook | Cinema

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page