Around $2 billion, approx Rs 12,000 crore, is the economic value of India's film industry. Add to it the allied sectors of entertainment, losses due to piracy and the umpteen opportunities to market and scale Indian films on a global scale. The potential is nothing short of a valuation 10 times the amount.
The huge numbers are a clear indication of the possibilities India's film and entertainment sector offers. One that needs dollops of cash infusion, as well as strategic partners who can shore up its pre-production, production, distribution and film exhibition on par with international standards.
The Indywood Billionaires Club, an innovative initiative launched during the 3rd edition of the prestigious Indywood Film Carnival in 2017, has set the wheels rolling to this regard. By already raising investments of over Rs 3,000 crore from nearly 20 Indian billionaires based out of United Arab Emirates, Europe and Asia-Pacific, IBC's end game is to secure investments to the tune of $10 billion from 2,000 billionaire non-resident Indians and companies over a period of few years and direct the investment to the multi-billion dollar cinema economy.
The Billion Dollar Pie
NRI businessman Sohan Roy, who is consistently featured in Forbes Middle East's list of Top 50 business owners, is the brainchild behind IBC. A serial entrepreneur and Hollywood filmmaker of Indian origin, his company Aries Group is the chief executing agency of IBC's ambitious plan. "India is blessed with talented actors and technicians and our film industry should make movies which appeal to the international audience. The movie industry will fetch huge gains if we increase the number of international projects by using advanced technology and worldwide distribution," said Roy.
Of the $10 billion to be raised as an investment, $5 billion will be spent on theatres, $2 billion on studios, $1 billion on movie production, $1 billion on equipment manufacturing and $1 billion on talent schools/agencies. Project Indywood, of which IBC is part, has already lined up plans to put up 10,000 4K projection multiplex screens, 100,000 2K/4K projection home cinemas, 8K/4K film studios, 100 animation/VFX studios and film schools adhering to international standards across the country.
According to a report prepared by Deloitte for Indywood, the Indian entertainment industry is expected to grow at 11 per cent CAGR reaching $3.7 billion by 2020. Understandably in the coming years, the volume of foreign direct investment will play a decisive role in conceiving and implementing mega projects. And this is where the IBC comes in.
Set to include over 100 Indian billionaires into its fold by the end of this year, the Indywood Billionaires Club will also educate prospective investors on effectively tapping opportunities in the growing Indian film and entertainment sector comprising movies, animation and graphics. Roy further added that the Indian film industry should come forward to conceive and implement big-budget international projects instead of following clichéd subjects and treatment patterns.
The Indywood Film Carnival (IFC) is being seen as the one-stop confluence to bring together the industry's present and future stakeholders. The annual event will be having its 4th edition in Hitex Hyderabad between December 1 and 5, and is expecting the presence of 5,000 business delegates from across 100 countries.
Business to the tune of Rs 500 crore is expected to be generated by way of signing up of big-budget movie projects, co-production ventures and B2B agreements. Indywood Billionaires Meet, Indywood Academy Awards, Indywood Telly Awards, Indywood Fashion Premier and All Lights India International Film Festival are the major attractions of IFC 2018.