The king of the cinema exhibition business, Ajay Bijli, is now moving into the glamorous yet risky world of movie production. And he is doing so in his inimitable style.
PVR Pictures, a wholly owned subsidiary of PVR Ltd (the public limited company that Bijli heads and which owns the various PVR cinema halls across the country), has signed up film star Aamir Khan for two movies expected to hit the screen in 2007 and 2008.
The deal is believed to have been signed just a few days ago. Khan, who charges over Rs 7-8 crore per film, will be involved in co-production with PVR as well.
At the moment, PVR Pictures is involved in cinema distribution. The entry into production will make Bijli an integrated player in the movie business, straddling cinema halls, distribution and film production.
However, a PVR Ltd spokesperson, when contacted, declined to comment on the developments.
With over 70 exhibition halls across the country, PVR is on a major expansion drive and is aiming for 300 screens in the next three years. The investment that will give shape to this ambitious strategy is Rs 350 crore.
Insiders say distributors have to pay a large amount of cash upfront as minimum guarantee for a film over which they have no control, in order to book a territory in advance.
It makes more sense to get into film production where one has control of the film and where one can also encash on new revenue streams like DVD, satellite, music and DTH rights that currently constitute over 40 per cent of a film's revenue.
The tie-up with Khan is also a coup. The star has had a great year at the box office with two blockbusters in a row.
Fanaa, made with a budget of Rs 22 crore, collected over Rs 98 crore in India and abroad. And Rang De Basanti, made with a budget of Rs 30 crore, has had an amazing box office collection of over Rs 110 crore.
