Business - Hollywood continues to have designs on India

Meena Iyer

MUMBAI: Rough estimates suggest that Rs 700 crore of foreign studio funds is floating in Bollywood right now. Walt Disney, Sony, Warner, Fox Star and Paramount are all headed for tinsel town. Every Hollywood studio is figuring out the best possible entry into the Indian market, trade insiders say.

The American film market has been stagnant for about eight months now, forcing Hollywood studios to scout for growth opportunities. The global meltdown, in fact, may have actually precipitated the foreign studios’ entry into India, say experts.

Low investments (the dollar is much stronger than the rupee), a strong domestic film market (Bollywood is the biggest producer of movies in the world) and huge growth potential makes India a very lucrative market now, they explain. "Their aim is to connect with the world’s largest cine-going audience," Vipul Shah, who has entered into a Rs-150-crore deal with Fox-Star Studios, says.

Walt Disney Company (Indi ) managing director Mahesh Samat reveals that the firm’s plans for 2009-10 include alliances with Shah Rukh Khan’s Red Chillies and Kamal Haasan for live action films. Disney will also collaborate with Yashraj on a second animation film.

A quick rewind shows that Warner has tied up with Nikhil Advani, Sony has collaborated with Sanjay Leela Bhansali, Disney has a stake in UTV and collaborations with Shah Rukh/Yashraj/Kamal Haasan; Viacom, Paramount’s parent organisation has a stake in Indian Film Company (Studio 18); and Fox-Star has tied up with Shah.

"We are very serious about the Bollywood market," Fox Star Studios India CEO Vijay Singh says. "The deal with Vipul Shah will see co-development of projects rather than just green-lighting films. In an increasingly globalised scenario, this is only but natural."

Foreign studios have also been making a thorough study of the hierarchy in Bollywood, a trade insider says. Reports suggest Fox was keen to collaborate with Karan Johar prior to its signing up with Shah. Johar reportedly asked for Rs 220 crore and wasn’t keen on parting with his next directorial project, My Name Is Khan, as part of the Rs-220-crore deal, say Bollywood insiders. But, as Fox Star India had set aside Rs 150 crore for its first investment, it chose to partner with Shah.

Shah adds: "It’s no longer about the vanity of being attached to a foreign studio. There are very tangible benefits that both sides bring to each other. The Indian middle class is perhaps the biggest in the world; and they’re also comparatively young. The preferred mode of entertainment is films and it is going to remain so for a long time to come. Bollywood’s fundamentals remain very strong, making it lucrative for Hollywood studios."

Film marketing professional Vikramjit Roy says: "We live in an era where co-operation and joint ventures are natural. A tie-up with a Hollywood or some other international studio brings in scale (in terms of markets, fund flows and operations) and professional and technical expertise and this adds to the creative process here. As the market for Indian cinema continues to grow internationally, these global networks will allow Indian film producers to showcase their work outside the home market and get greater exposure for their films."