Priyanka, 32, is also starring in the film as a female lead.
"I am really happy Madhur agreed to be the director in my first home production. It is a big and new step for me in a new direction. As a producer I want to make great films," Priyanka said in an interview here.
"I wanted to make films but I never thought I will make a film starring me. I want to tell small good stories but this ('Madamji') came as a great opportunity to establish the production house. I want to promote new talent whether it is actors, directors or writers... I think we need to promote newer talent, help them," she said.
"I like evolving and changing. I don't know where I will go and what next I will do but things eventually happen. Like I never thought I would turn musician and producer... I am spontaneous and I am instinctive," Priyanka said.
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'Madamji' is the story of an item girl who becomes a top politician.
Asked if she will be thinking of numbers and box office collections as a producer, she said, "I don't understand numbers... I get confused. It is tricky. When the film releases someone will call and tell about the numbers and the opening. I don't understand trade. I get very thrown off.