NEW DELHI: Padmalaya Telefilms Limited (PTL) is on the verge of signing a major co-production deal with an European studio, for production of four episodes and two movies to be made over the next five to seven years.
The deal is expected to finalise by this month-end, however, PTL has not yet announced the name of the studio.
On the development, PTL vice-president and head of Zee Institute of Creative Animation (ZICA) Rajiv Sangari says, “We are on the final stages of signing the memorandum of understanding with the associates. The deal is for 2-D animation projects and the overall revenue/ project projection is about US$15 million. By far, it may be the biggest deal in animation industry in India.”
Sangari adds that the project would entail production and marketing through co-production format. The production will be done in PTL studios in Mumbai and Hyderabad.
“We also intend to open up an office in Germany to support the European company,” Sangari explains.
In the past year, Indian animation studios have showed signs of moving from service-oriented projects to co-productions. Sangari expects this trend to continue.
“I predict a lot of co-production deals between US and India as well as Europe and India. People abroad have started seeing India as a favoured destination for doing not only service jobs but also developing properties with them by being their partners. Of course, 3-D animation is gaining grounds and will continue to do so in 2004, but the traditional style is also getting inroads in India,” Sangari explains.
PTL had recently announced that they plan to produce 52-episode, 22-minute flash animation series for Zee TV, scheduled for early 2004. The serial, titled Bheema Keema, is being targeted at the urban and semi-urban Hinglish language speaking kids of the country. The series is being planned for Sundays during the primetime slot.
For its new projects, PTL is also upgrading its facilities. It has acquired a new 3-D animation studio which will soon launch in Mumbai. “We have also taken up a place in Andheri, Mumbai, for a special effects division which should be up and running by about January 2004,” said Sangari.
Tag: Padmalaya
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Padmalaya to sign co-production deal with European studio
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Padmalaya works on indigenous animation series for Zee
NEW DELHI: Padmalaya Telefilms Limited (PTL) is gearing up to air a 52-episode 22-minute flash animation series on Zee TV, scheduled for early 2004. The serial, titled Bheema Keema, is being targeted at the urban and semi-urban ‘Hinglish’ language speaking kids of the country. The series is being planned for Sundays during the primetime slot.
Bheema Keema is a concept targeted at eight to 15 years olds. The main highlight of this serial is that it will be the first Indian animated television serial of 52 episodes showcasing on Zee TV, says Rajiv Sangari, vice-president, PTL and head of Zee Institute of Creative Animation (ZICA).
Bheema Keema is about two main characters, positioned as smart kids facing challenges and adventures in day-to-day life. The other secondary characters are Happy Singh and Chichi, the side-kicks, Pummy the pet dog and Dr. Kamal, a cranky genius scientist. The scripts and treatment has been conceptualised as per the lifestyle of the target audience.
Since these semi-metro kids have access to all the latest gizmos and gadgets, and they often fantasize to do something adventurous, mischievous and sporty in real life, they are attached to such concepts on television through which they can relate themselves directly, says Sangari.
PTL through its own animation division ZICA is gearing up for the bigger projects. As there is also a huge demand for skilled animation in the country, and very few trained animator available in the industry, to bridge this gap PTL has its own Animation training division, ZICA Training Academy, the only training institute that develops all the areas of an artist right from drawing skills to 2D and 3D Animation. Thus preparing the new breed animators for full-fledged production, says Sangari.
PTL has worked in the local market mainly for Zee Telefilms, including television commercials for Zee News and Esselworld, and television channel packaging for premier channels in DTH for Zee.
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Padmalaya Telefilms shares dip to 52-week low
MUMBAI: Touching a year after Zee Telefilms acquired a strategic stake in Padmalaya Telefilms Limited (PTL) through the acquisition of a substantial stake in PTL’s holding company, Padmalaya Enterprises private Limited (PETL), the shares of PTL slumped to their 52-week low on both the premier stock exchanges of the country.
On the Bombay Stock Exchange (BSE), the scrip ended the day at Rs 45.45, down 18.40 per cent, on brisk volumes of almost 354,508 shares. The earlier 52-week low was Rs 56.6. On the National Stock Exchange (NSE), the scrip closed the day at Rs 45.75, down 18.81 per cent with volumes of 139,424.
However, what is noteworthy is the fact that Zee Telefilms was one of the few media scrips which actually rose to Rs 73.25 (up 0.27 per cent) on the BSE; Rs 73 (up 0.07 per cent) on the NSE.
Padmalaya Telefilms posted a net profit of Rs 40.2 million for the quarter ended 31 December 2002 (down 39 per cent) compared to a net profit of Rs 66.1 million in the quarter ended 31 December 2001. Total income also decreased from Rs 274.0 million in the December 2001 quarter to Rs 202.3 million in the quarter ended 31 December 2002.
In a strategic move, Zee Telefilms announced in March 2002 that it planned to acquire a significant stake in Padmalaya Telefilms, one of India’s leading entertainment houses with significant presence in film production and distribution, television software production and animation software.
As per the MOU executed between Zee and the promoters of PTL, Zee would acquire majority stake in Padmalaya Enterprises Private Ltd. (PEPL) which is a holding company of PTL. Since this move triggered a change in management control of PTL, PEPL with Zee acting in concert, made an open offer in accordance with SEBI guidelines. Both companies sought the requisite regulatory approvals.
At that time, Zee Telefilms CMD Subhash Chandra said “With this acquisition, Zee continues to consolidate its position as India’s largest vertically integrated media and entertainment company. Zee’s acquisition of PTL creates an entertainment powerhouse with unmatchable strengths in animation software, Film production-distribution and television content.”
At that time, Zee was already a large, established player in the movie, music and animation business. Zee owns ZICA, one of India’s best animation production units with over 100 animators with top end skills for cell animation. ZICA is currently focused on the production of Bhagmati, India’s first full-length animation movie.
The key benefits of this strategic move for Zee Telefilms at that point of time were:
* Creation of a unified animation studio with capability to deliver high-end animation products for international markets.
* To capitalise on PTL’s extensive experience of over 30 years in movie production and distribution.
* PTL’s huge library of hit-films with over 300 films complimented Zee’s strong library of more than 3,000 movie titles.
* To utilise the well-established production facilities for in-house movie projects.
* To leverage PTL’s direct control over 60 theatres in South India and its wide distribution network in South India.
* To add over 1,500 hours of television software in Telugu, Tamil and Kannada to the existing Zee library (Zee has two satellite channels Bharathi (Tamil) and Kaveri (Kannada) and one cable channel in Telugu serving the Southern market).
Benefits to PTL
* Zee’s existing international operations, with offices in the US, Canada, UK, Dubai, Singapore, Hong Kong and South Africa would help PTL gain direct access to buyers overseas for its animation products.
* Leveraging joint marketing, promotion and product development opportunities in the movie business with Zee.
* Common apparatus for negotiations with the music and movie industry.
* Zee would provide its global platform to PTL for its television software library and animation property by airing on its international channels. -
The focus will be on identifying new opportunities
On a macro perspective, one of the biggest challenges that Zee will have to face is the current national as well as international political and economic scenario, which has resulted in a steep fall in both marketing and advertising spends. However, on the other hand, the growing competition in the domestic market is also one of the key challenges on our hand, which we will have to overcome to regain our lost grounds.
At the same time, we will have to continue to seek newer opportunities to ensure better business efficiencies, create value for our shareholders and ensure better practices. In the past few years, because of both organic as well as inorganic growth, the corporate structure at our end had become multi-layered and complex.
The restructuring exercise undertaken by the Group highlights our continued commitment to create value for our shareholders and ensure better practices.
“It is critical that we go into a system of programme benchmarking so that our eyeballs translate into viewer decisions to buy into the channels”We will continue to seek opportunities to ensure better business efficiencies through reduction of inventories, better management of working capital, exit from non-core businesses, rationalisation of business processes and disposal of non-essential assets, amongst others. The revised corporate structure at Zee would result in better utilisation of resources besides being simple and efficient from the point of view of tax, accounting practices and legal compliances.
Despite the regulations being eased in 2001, DTH still carries several entry and operational restrictions. However, at the same time, with the passing of the Conditional Access System Bill, the power will be in the hands of consumers in terms of viewership as well as revenue. It is critical that we go into a system of programme benchmarking so that our eyeballs translate into viewer decisions to buy into the channels. The implementation of CAS will allow broadcasters to secure revenues for subscription services by prohibiting signal theft.
Zee’s strategic programming initiatives like Thursday Premieres, Sunday Programming and Live Online draws for three State Governments are expected to help us to improve our share in the advertising revenues market.
Our subscription revenues from the domestic as well as international markets continues to grow at a healthy rate, which will provide an increasing broad basing of revenue stream in the days ahead. During the year, initiatives like the alliance between Zee & Turner for distribution, the acquisitions of ETC and Padmalaya, uplinking of Channels from India and the launch of separate encrypted beam for international markets have already started paying dividends.
Besides driving programming excellence, the focus will also be on increasing shareholder value and on the unique multi-pillar channel approach. In the current market environment it is important not to lose sight of issues, which in the long term will deliver real, sustainable shareholder value. We will remain committed to our viewers and will continue to ensure that we offer them what they want to see.
(The author is the chairman and managing director of Zee Telefilms. The ideas expressed here are his personal ones and indiantelevision.com need not necessarily endorse them)
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Animation producers form association
NEW DELHI: The Animation Producers’ Association Of India (APAI) is being formally inaugurated in New Delhi today.
Twenty animation production houses, including UTV Toons, Pentamedia, Padmalaya, Crest and Maya Entertainment have decided to join forces to market India as an important centre for outsourcing content, according to media reports. The association will create a common website, produce CD-ROM’s and participate in international festivals like MIPCOM 2002 at Cannes.
” If India desires to garner five to seven per cent of the outsourcing market in the next two to three years, it will need to lobby together as a body and get industry status from the government. The government has to take several initiatives,” UTV Toons’ chief operating officer Biren Ghose has been quoted as saying.