In a communique to the Bombay Stock Exchange, Balaji Telefilms said the company would invest Rs 60 crore (Rs 600 million) for a 49 per cent stake in the joint venture company while Star Group would hold the remaining 51 per cent.
The JV company would be headquartered in Chennai. Balaji Telefilms board at a meeting held on Thursday approved the company's decision to start regional language channels, it said.
Star Group already
operates a Tamil language channel, Vijay TV. As per the agreement, the two companies are also planning to launch a Telugu channel by the last quarter of the year while channels in Kannada, Malayalam and other key south Indian languages will be launched within the next two to three years, it said. Star Group would be responsible for the operations of the joint venture channels while Balaji would provide regional content.
"We believe that combining the expertise and resources of the two companies will enable us to create the leading regional language TV network in the country. I am confident that our investment in this joint venture will generate significant value for our stakeholders," Jeetendra Kapoor, chairman, Balaji Telefilms said.
