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Dhoots to pick ally for entertainment foray

Raksha Hegde & Reeba Zachariah

The Dhoots-controlled Videocon group has decided to rope in a strategic partner for its entertainment business. The group will house its entertainment multiplexes, film studios and Hindi film production business under a new company: Videocon Entertainment.

Anirudh Dhoot, manager (marketing and sales), Videocon International and also head of the entertainment business said, "We will be divesting stake in favour of a strategic partner in our entertainment business. The Videocon group will be holding 51 per cent, while the balance will be held by the partner."

Explaining the rationale behind the Rs 40 billion group's foray into entertainment, Dhoot said, "This a new area and a different line of business. Also we wanted to try our hand at it."

According to Dhoot, the theme parks, multiplexes and film production will be divisions of Videocon Entertainment.

"But, since we are negotiating with a lot of companies for a possible joint venture, depending upon the partner's strength, focus and interest, we will then hive off the divisions into separate companies and rope in different companies/partners for the divisions. The group will, however, hold a majority stake of 51 per cent," Dhoot said.

On the cards is multiplex theatres which will be set up in Thane, Bombay and Ahmedabad, which will house eight screens for movies, Dhoot said.

The group may also explore the possibility of converting its plant premises into multiplex theatres. Dhoot said, "It all depends on the location such as the Salt Lake in Calcutta which is a prominent location."

Videocon had bought the consumer electronics factory at Salt Lake from Philips India.

The group is also in talks with Singapore-listed Warner Village for a strategic alliance to set up family entertainment centres and multiplexes.

In the case of film production, Videocon will produce two-three movies each year. It is negotiating with production companies such as Boney Kapoor Productions, Pritish Nandy Communications and K C Bokadia Productions to produce their forthcoming movies. On the criteria to produce movies, Dhoot said, "It depends on the star cast, script and director."

For international studio facilities, the company is negotiating with Universal Studios as it is interested in investing in the venture.

Videocon group, one of India's largest consumer electronics major, also has a presence in the power, petroleum and Internet service provider businesses.

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