The company has several films screening in Cannes this year including "Mud", directed by Jeff Nichols.
"We are delighted to have French rights to 'Mis Lovely' which exemplifies the new wave Indian cinema," said Gregory Gajos of Ad Vitam in a statement.
A take on the C-grade Mumbai film industry of the '80s, the film has been making waves internationally since being selected for Cannes' 'Un Certain Regard' section, which encourages young talents.
Fortissimo Films has already bagged the global rights of the movie, which stars Anil George, Nawazuddin Siddiqui and Niharika Singh in leading roles.
Set against the colorfully garish, seedy, and exotic backdrop of Bombay's C-grade movie business of the 1980's, "Miss Lovely" tells the tale of two brothers immersed in this universe, who eventually turn on each other in a sordid tale of betrayal.
Ahluwalia has previously directed award-winning documentaries like "The Dust", "A Short Season" and "Thin Air".