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Balaji Telefilms to venture into film production

NetScribes / Rajiv Banerjee

From 21 inches to 70 mm, Balaji Telefilms is dreaming bigger. After more than succeeding at television software production, Balaji is now all set to foray into film production. The company plans to produce three to four medium-budget movies, costing around Rs 50-60 million each, every year.

"We are studying the feasibility of producing three to four films annually. We are in talks with several television channels to sponsor or part finance the venture," a senior official at Balaji Telefilms told NetScribes. He, however, refused to name the channels with whom the production house was negotiating.

Balaji's move comes at a time when film production has become a profitable proposition, what with music acquisition costs and domestic and international sale of movie rights rising like never before.

Analysts, however, doubt if the buoyancy in music rights acquisition is sustainable. Moreover, they point out, only reputed banners like Mukta Arts command a high price for domestic and international rights, whereas Balaji's track record is yet to be established.

"Balaji has definitely proven itself in television programming but producing a film is a totally different economics, given the size," said a media analyst at a brokerage firm in Bombay. "Although tying up with television channels can reduce the risk, it remains to be seen whether Balaji can rope in such a partner," he added.

On the Bombay Stock Exchange, the Balaji scrip closed at Rs 159.45 on Friday, down from the previous close of Rs 168.6.

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