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Mr M. Raajhendhran

R. Ravikumar

Chennai, May 28 Raj Television Network Ltd plans to produce movies and start a 24-hour news channel. It is seeking private equity to fund the same. Sources in the film industry said that Raj has initiated steps to produce three films for starters, at a budget of Rs 30 crore, and has started discussions with producers. Mr M. Raajhendhran, Managing Director of the company, confirmed the move, but said the details are yet to be finalised. “Talks are in advanced stages,” he said. Besides, it also plans to dub Boys (a recent Tamil film) into Hindi, for which it acquired rights.

The company is also set to roll out its 24X7 Tamil news channel in a couple of weeks, which according to Mr Raajhendhran will be free-to-air. The channel is currently on air on test basis.

That apart, it proposes to construct a new 75,000 sq.ft. studio-cum-office complex at Rs 25 crore at its current premises. The company has 16 grounds (one ground is 2,400 sq ft) there including the two grounds it recently acquired. “We are also planning to invest Rs 10-15 crore in new studio equipment for captive and hiring purposes as well,” he said.

The debt-free company will meet part of its financial requirements through IPO funds and internal accruals, the rest may be through private equity investments. Recently, the company launched its round-the-clock music channel Raj Musix which is expected to add Rs 3 crore to the company’s topline in the first year of operation.

For the year 2007-08, Raj Television posted a net profit of Rs 13 crore on a turnover of Rs 50.7 crore against Rs 9 crore on a turnover of Rs 38.5 crore in the previous fiscal. Earnings per share work out to Rs 10.14 (Rs 8.47).

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