Zee's distribution business, which is through Padmalaya Telefilms, currently grosses around Rs 50 crore.
The move is aimed at eliminating the territorial system of film distribution business wherein the film producers have to tie-up with regional players for distributing their films across the country.
In other words, the venture would be a one stop shop for film distribution against the existing fragmented nature of the business.
As per the agreement `Zee-Rajshri Film Distribution' would be distributing films produced, co-produced and acquired by both the companies through more than 20 distribution offices spread across India.
Subhash Chandra, chairman of Zee Telefilms said, "The idea is to harness the potential of the industry and address the paradigm shift that is taking place in the field of cinema globally. We would also continue to address other issues relating to the film industry like piracy, entertainment tax etc."
"This shall be a platform for the entire film industry as a single window service with access to the majority of the best movie theatres across the country," Kamal Kumra Barjatya of Rajshri Pictures said.
The Rajshri group is one of India's largest, oldest and most successful entertainment conglomerates.
Established on August 15, 1947, it has, over the last five and a half decades, etched a very special place in every Indian heart and are today India's most trusted brand for wholesome family entertainment.
It has produced 49 Hindi feature films till date, many of which are among Indian cinema's biggest hits, such as Maine Pyar Kiya, Hum Aapke Hain Koun etc.
It also owns India's largest and most comprehensive film distribution network with 21 offices covering the 13,500 screens across India.
