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PVR's major expansion plans
June 5, 2008 4:02:34 PM IST Bollywood Trade News Network
PVR Pictures Limited ("Company"), a wholly owned subsidiary of PVR Limited, announced today that it has signed agreements with ICICI Venture Funds Management Company Private Limited and JPMorgan Global Special Opportunities Group, one of JPMorgan Chase Bank N.A.'s private equity arms, for the investment of Rs.1.2 bn in the Company.
PVR Pictures Limited is a film production and distribution company that is exploring and developing significant expansion plans. Its parent company PVR Limited is listed on the BSE and NSE. JPMorgan and ICICI Venture will each invest Rs. 600 million in PVR Pictures.
This is one of the most significant private equity investments in the Indian film and entertainment sector in recent years and it demonstrates the strong confidence ICICI Venture and JPMorgan have in the Company's sound business model, management expertise and the prospects of the industry. .
Commenting on the transaction, Ajay Bijli, Managing Director of PVR Limited, said, "It is a matter of great pride for us that the two leading private equity funds have reposed faith in the business model and management team of PVR Pictures. We are confident that the equity partnership with JPMorgan and ICICI Venture will help us rapidly realize our ambition of making PVR Pictures one of the leading companies in the content production and distribution space in Indian market."
This transaction will enable the parent, PVR Limited, to become a fully integrated film and entertainment company with interests across the entire value chain including production, distribution and exhibition. PVR Limited is already one of the largest multiplex operators in India and contributes approximately 15% of the box office collections of any leading Bollywood film. The expansion into the production and distribution business through PVR Pictures will create further synergy for the group by leveraging its exhibition circuit. It will also help to make PVR Pictures a significant player in the content space.
PVR Pictures has a significant presence in Indian film distribution space, having distributed over 100 Bollywood and Hollywood titles during the last 3-4 years. The Company recently undertook its first movie production - TAARE ZAMEEN PAR, co-produced with Aamir Khan Productions Private Limited, which was a significant box office success. The film received highly positive reviews from film critics and bagged 5 Filmfare and 5 screen awards. Upcoming releases this year include, JAANE TU YA JAANE NA (co-production with Aamir Khan Productions Private Limited), CONTRACT (co-production with Ram Gopal Verma), MERE KHAWBON MEIN JO AAYE and GHOST GHOST NA RAHA. The company will increase its output next year to 8-10 films, up from 4-5 this year. Some of the forthcoming films being distributed by the company include SARKAAR RAAJ (distribution in few territories), MERE BAAP PEHLE AAP (distribution across India) etc.