Shemaroo to boost movie production, distribution
After producing movies such as Manorama Six Feet Under, Bal Ganesh etc, it is looking at developing home productions as a robust revenue stream, reports Saurabh Turakhia.business Updated: May 06, 2008 23:24 IST
Movie distribution house Shemaroo is taking its production foray seriously. After producing movies such as
Manorama Six Feet Under
etc, it is looking at developing home productions as a robust revenue stream. It will also move into audio and film distribution in a phased manner.
Speaking to Hindustan Times, director of Shemaroo Entertainment Hiren Gada said, “We are pumping in Rs 75 crore for projects lined up for our own animation and live action projects this year. After two years, we will inject another Rs 50 crore.”
With bigger investments flowing into in-house projects, their contribution to the total turnover is expected to go up from 5 per cent to 35-40 per cent in the next three years.
The company expects to grow at a compounded annual growth rate (CAGR) of 30 to 35 per cent over the next three years. It closed 2007-08 with a turnover of Rs 140 crore and expects to grow to Rs 180 crore next year.
Talking about foray into audio and theatrical distribution, Gada said, “Since we are already present in overseas, satellite, home video and new media distribution business, we will look to fill the gaps with presence in audio and theatrical distribution in a phased manner.”
Currently, over 50 per cent of Shemaroo’s revenues come from satellite rights distribution and about 20 per cent from home video business. However next year, its revenues from in-house production will be higher than the home video business.
The company expressed concern over video-piracy, which causes the company Rs 650 crore in revenue-loss.
Shemaroo’s lineup of forthcoming productions includes Mere Baap Pehle Aap, a remake of Padosan, Ghatotkach and Abbas Mustan’s next directorial venture.