The first steps in public investment in film industry
The NDA government accorded industry status to the film industry in the year 2000,Since then film industry, hitherto an unorganized sector, opened its gates to the organized financial markets getting number of industrial houses have their money invested in show biz. Today many big biz houses have pumped their money into different departments of entertainment business. In addition to the traditional industrial groups many more film personalities also gone to public starting their own entertainment ventures, notable among them are Subbhash gai, UTV etc.
Not to be outwitted by any one ubiquitous Reliance industries entered into entertainment industry acquiring major chunk in the Ad labs, now a part of Reliance info, today ‘Ad labs’ has multiplexes in every major city and rapidly expanded into other departments of film making i.e. production, music rights etc.
DOWN THE SOUTH
In the south a long back Maniratnam’ brother G.Venkateswarn made attempts to get public investments into film industry through his G.K.films but it ended up as damp squib. Now a small time Tamil actor’ public limited company PYRAMID SAI MEERA is a leading distribution and exhibition house in the south and a news has it that a few more familiar film families also keenly evincing interest to go for public funds ,the names that are heard in this regard are Ramanaidu studious and Usha kiron movies etc. Ramanaidu studious has good and consistent track record in the film making business as Naidu is on the fog end of his life his eldest son has taken over the reins. Considered by many as smart businessman Suresh as part of expanding of their empire in big way planning to attract public investments despite his father’ resistance within no time we will find their public issue soon. Usha kiron movies has world’ biggest film studio ‘’Ramoji film city’’ to their credit and have been in film making and distribution biz for the last thirty years as soon as they come out of ‘Margadasrsi’ financial maze their public offering is imminent given their off loading of some stake to NRIs already.
As far as Telugu film industry concern Mahesh starrer ATHIDHI was the first flick in the Telugu produced with public funding. If rumors are correct Reliance is going to make a film with Nagarjuna and the UTV as part of their three film contact with Mahesh babu planning to complete remaining two as fast as possible.
If indications take a form very soon we can see structured system of working in this biz, but some big heroes like Balakrishna have serious reservations in this regard, he is of the view that film making is a friendly activity not just financial matter, in view of this corporate houses cannot sustain for longer period in this market and the present trend is momentary, ultimately individual producer will emerge as winner.