Television

Institutional finance on the up for Indian movies

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/07/26/Sony%20Pictures%20Television%20International.jpg?itok=Yc8F5I_e

MUMBAI: Institutional finance is beginning to flow in to fund Indian movies. IDBI, for instance, has sanctioned Rs 5.5 billion on a cumulative basis over the last five years. Exim Bank, similarly, has extended lending to over Rs 4 billion for film projects which have potential to earn foreign exchange.

"Overseas earnings from films recently financed by us has touched Rs 1.15 billion. We are not only financing on the production, but also on the overseas distribution side. The industry has a lot of potential even in the animation business," said Exim Bank chairman & managing director TC Venkat Subramaniam, while speaking at "India The Big Picture," a seminar here today on the film entertainment industry organised by the CII.

Exim Bank has a lending cap of Rs 250 million for a single film project. The film industry earns an estimated Rs 69 billion a year, contributing 26 per cent to the total revenue of the entertainment sector. This is just 1.7 per cent of the global market, said Subramaniam.

Export revenues have jumped from Rs 2 billion in 1998 to Rs 4 billion in 2000 and further to Rs 11 billion in 2005, accounting for 16 per cent of the total earnings. "There is a healthy outlook as we increase earnings from the international market, strengthen animation outsourcing, provide institutional financing and extend government incentives," he added.

IDBI is also cautiously bullish on the industry. "We have funded 70 movies. We are not only providing rupee loans but also in dollars for borrowers to hedge foreign exchange risk. Besides, we are extending line of credit so that film producers can cover up not on one but a slate of movies," said IDBI general manager Aloke Dasgupta.

IDBI funds only projects which have a minimum budget of Rs 4 billion and have a debt-equity ratio of 1:1. "We are providing financial support only for film production. We don't fund in the reail and distribution end of the business. But for supporting smaller movies, we are in dicussions with NFDC to ensure that money is put in the right place for such projects," said Dasgupta.

But are the southern films having access to institutional finance? South Indian Film Exporters association president and MD of Ananda Exports L Suresh said film financing had not trickled down to the southern region. "It is probably because most of the banks are headquartered in Mumbai. Besides, banks take a long time to sanction loans and we finish production within three months. Besides, banks insist on collateral securities," he said.

Speaking on the sidelines, Dasgpta, however, said IDBI had financed Tamil and Telugu movies.

Speaking on the occasion, Sony Pictures India MD Uday Singh said financial rigour was essential as the movie business is not without risks and revenue leakages. Media is fragmented and there are market access issues in certain states. "We have done enough hard work and there is now a bottom-up realism. We are extending from our distibution business and getting into film production as well. We are starting with one but are in alks with other directors as well. Our mandate is to have a slate of at least 2-3 films in a year's time," he said.

Emphasising on the importance of a theatrical success, he said the Hollywood studios are realising that fast growth would come from the BRIC (Brazil, Russia, India and China) markets.

Ernst & Young partner and head of media practice Farokh Balsara said the home video segment accounted for just 4 per cent of filmed entertainment revenues while in the US it was as high as 50 per cent. This sement could see increased activity as ventures capitalists have started to invest into new models of home video.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/25/Punit-goneka-800x800%20%282%29.jpg?itok=KJDyzBsr
ZEEL reports steady Q1 FY2018 results

MUMBAI: It’s been a hectic first quarter of FY 2018 for homegrown media power house -- the Essel Group promoted Zee Entertainment Enterprises Ltd (Zeel). The company has gone ahead for some corporate restructuring and has also declared its Q1FY2018  financials which, if not impressive, at least...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/25/DD-800x800_1.jpg?itok=dnHWjk4Z
DD announces short film contest on Independence theme

NEW DELHI: Doordarshan has announced a Swatantra Bharat Short Films Contest to mark the 75th anniversary of Quit India Movement and 70th anniversary of India's Independence next month. The aim is to create awareness, education, encouragement and enlightenment about inspiring, real-life stories of...

Television TV Channels Terrestrial
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/25/NDTV-newsroom.jpg?itok=rwNsboTL
NDTV restructures biz & newsroom amidst reports of layoffs

NEW DELHI: Buffeted by allegations of tax evasion and money laundering, which are being contested in appeal tribunals, one of India’s first private sector TV news organization NDTV has said it is reorganizing newsroom set-up and resources available to adapt to changing technologies like MoJo or...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/24/war.jpg?itok=DB4RB8xx
Star World launches Game of Thrones season 7 with personalized posters

The great war is finally upon Westeros as the much anticipated first episode of Game of Thrones premiered on Star World last Tuesday at 11 PM. In order to promote the launch, Star World undertook a mammoth digital campaign to engage with fans. By tapping into current trends on social media and...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/24/Hemang%20Amin.jpg?itok=KaQHwSfq
BCCI elevates Hemang Amin as COO

MUMBAI: The Board of Control for Cricket in India (BCCI) has appointed Hemang Amin as the chief operating officer (COO) of the Vivo Indian Premier League. Amin was most recently assistant general manager – finance, commercial and events at BCCI and was recognized for successfully handling the...

Television TV Channels People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/24/Untitled-1.jpg?itok=8mf6CXTQ
GRB Entertainment announced sales of it's top 4 documentaries

MUMBAI: GRB Entertainment announced sales of four of its top documentaries to broadcasters in Brazil, Japan and the U.K. Globosat Brazil renewed Remembering Whitney, a documentary featuring legendary singer Whitney Houston, just in time to celebrate the icon’s August 9thbirthday. This breathtaking...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/24/DD-800x800.jpg?itok=8r8Xm_oH
Prasar Bharati Board favours separate DD News Hindi & English channels

NEW DELHI: The Prasar Bhrati Board is inclined towards bifurcation of the Doordarshan News channel into two – one for Hindi and another for English. However, the Board has sought the views of Doordarshan before taking a final decision. In a recent meeting, Prasar Bharati sources told...

Television TV Channels Terrestrial
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/22/IPL-800x800.jpg?itok=gWfm4TQw
IPL: Media rights race hots up after IMG renews events deal

MUMBAI: IPL events rights holder - the International Management Group (IMG) has reportedly renewed its partnership with the Indian Premier League (IPL) for another five years. For the last 10 years, the UK-based organisation is the primary controller of the main events related to the IPL. IPL...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/22/ISL.jpg?itok=_eMunjPv
ISL sponsorship: Hero triples investment at Rs 1.6 bn

MUMBAI: Hero MotoCorp has, for another three years, reportedly renewed its sponsorship arrangement with IMG Reliance and Star India-promoted Indian Super League (ISL) for Rs 1.6 billion. As Hero's last deal with ISL in 2014 was valued at approximately Rs 500 million, it has now tripled its...

Television TV Channels Sports

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories