Film toys and more

Cute cartoon icons like Casper, Richie Rich and Wendy are coming to your neighbourhood. At least that's what Sushilkumar Agrawal, managing director, Ultra Group, confidently predicts. He should know.

His Rs 100-crore company that has been identified with production, post-production, marketing and distribution of movies is now betting its money on merchandising and retail outlets.

For starters, the group will have 150 exclusive retail outlets called Ultra mini malls across the country by end of 2006. These stores would be typical gift stores that would promote toys, games, puzzles, greeting cards, gift items, stationery, birthday party products, and VCDs and DVDs from Ultra's stable.

Seven Ultra mini malls have already been launched in Delhi and Mumbai and three malls will be launched early next year in Gujarat. The malls will concentrate on growing what Agrawal calls "the film merchandising segment".

His first tryst with film merchandising started with Jaddoo, the affable alien of Rajesh Roshan's blockbuster, Koi Mil Gaya. "It was our testing vehicle," says Agrawal. The strategy paid off and Ultra's balance sheets totalled a clean profit of Rs 70 lakh from it. " Bollywood presents a great opportunity for the Rs 1,500 crore merchandising sector," he says.

Having figured out the potential of film merchandising, Ultra is in talks with filmmakers like Subhash Ghai, Sooraj Barjatya and Yash Chopra to encourage the use of animated characters in films.

Typically, one needs to invest a minimum of Rs 15 lakh in film merchandising, and judging by box office records a successful Bollywood "retailing" venture can earn profits of nearly Rs 35-40 lakh. Besides Koi Mil Gaya, Agrawal's company was roped in for distribution of film merchandising of flicks such as Main Prem Ki Diwani Hoon and Chalte Chalte.

"Indian films still need to realise the potential of film merchandising," says Agrawal adding, "Hum Tum lost out on a neat packet of Rs 2 crore because the filmmakers chose not to merchandise their cartoon characters."

If the market of Indian film merchandising looks so lucrative, then why is Ultra Group, also a licensing partner of international entertainment groups like Kiddinx, Carlton International, Granada, Agogo, HIT Entertainment and Harvey Toons, spearheading to include overseas cartoon characters. "If a movie fails, merchandising naturally fails. Cartoon characters like Casper and Richie Rich are not bound by any of these restraints," he points out.

The group has its eyes set on reaping profits from the Rs 7,000 crore strong gift market and is confident of creating 500 mini malls by 2010. While a bulk of the outlets will be given to franchisees, the group will own and manage 15 stores for starters and invest Rs 10-15 lakh in each store."The entire exercise of retailing will be around Rs 5 crore," says Agrawal.

The plans are in place, but will this venture too be a blockbuster hit?