Movies

Mukta Arts sells 12 films to Zee Cinema for Rs 220 million

MUMBAI: Mukta Arts has sold telecast rights for 12 movies to Zee Cinema in a deal worth Rs 220 million, while the remaining 14 in the library come up for renewals in different periods.


The Subhash Ghai-promoted film production and distribution company expects to rake in Rs 400 million from its library over a five-year window. "We have signed a five-year contract with Zee. The total earning potential of our library of 26 movies, which is fully amortised, is upward of Rs 400 million in every five-year window," says Mukta Arts CEO Ravi Gupta.


The movies sold to Zee Cinema include Karz, Hero, Karma, Saudagar, Khalnayak, Trimurti, Pardes, Taal, Yaadein, Ram Lakhan and Rahul.


Mukta Arts has also sold the home video rights to Shemaroo Entertainment for Rs 32.5 million for a period of five years. The re-make rights of its film Karz has been sold to T-Series.


"These deals have boosted Mukta Arts‘ profitability in 2006-07 while our topline grew over 130 per cent," says Gupta.


Mukta Arts plans to scale up its production pipeline to 10 movies a year by 2010. In 2006-07, the company released four movies - Shaadi se pehle, 36 China Town, Apne sapna money money and Khanna and Iyer.


Recently, Mukta Arts stitched a deal with Eros for distribution of its three upcoming movies. Eros will pay Mukta Arts Rs 730 million and have the distribution rights for five years.


Mukta Arts also acquired a 50.01 per cent stake in start-up company Red Carpet Films to increase the bandwidth of its production pipeline.

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