Formal ties with casual jeans

ENTERTAINMENT: Looking for a corporate edge in the bsuiness of regional entertainment.

The south Indian film industry has found success in a film called Thambi. According to Sun TV ratings the Rs 4 crore film starring R Madhavan has completed a successful innings of 100 days and is in the top five successful releases.

Thambi's success makes Datuk K K Eswaran's smile more prominent whose company Mid Valley Entertainment has produced Thambi that according to him, "is on its way to becoming a blockbuster".

Here's a quick dekko at the company. Mid Valley entered the Indian market in October 2005 after it took over and bought shares from Murli Manohar (one of the single largest shareholders of 1987-founded CEEI TV with shares worth Rs 7-8 crore).

Incidentally, CEEI TV co-produced films like Jeans, Taj Mahal and more recently distributed the film Ramji Londonwale. All of which were duds, right? "Wrong," says Eswaran, adding, "Jeans gave Aishwarya a strong foothold in the south Indian film industry. In south India, Jeans was big hit."

The total size of Mid Valley today is Rs 20 crore and Eswaran will generate at least Rs 100 crore within the next six months.

With this he wants to cover the entire gamut of entertainment including producing south Indian and Hindi films besides English films, producing and directing serials for the regional market, creating multiplexes in south India before moving northwards to create them in the rest of the country and upgrading theatres in south India.

"The capital will be generated by private investors and through private equity funds by the end of this year," confirms Eswaran, stressing, "We need to enter the market aggressively."

The ground work has already begun what with Mid Valley Entertainment having identified 15 single screen cinemas in Chennai and upgrading them with digital sound, giant screens and offering better facilities.

The company is spending anywhere between Rs 15-18 lakh on every theatre and "even though some theatres are more than 50 years old", Eswaran is confident of offering the best to the audiences.

Besides, the company has identified land in Bangalore and will start work to build a multiplex that will be completed within the next 24-36 months.

"Indian entertainment industry will be a $10 billion industry by 2010 according to experts and we want to be seriously involved in it," says Eswaran.

That's why the company is not resting on the laurels of Thambi and finalising its next film that will be released by September this year.

The company's varied interests in distribution, production, direction and exhibiting of entertainment content also gives rise to competition. Is Mid Valley prepared to deal with it? "There's competition in all spheres. We are looking at all aspects of entertainment so we have the advantage of recovering money more easily," believes Eswaran.

"Our films are not funded by any bank loans. On the contrary we generate funds from the money that has been invested in Mid Valley primarily through other companies like Unigold Pacific, Kiara Enigma and Global Motion Pictures & Ventures," says Chandra, COO, Mid Valley.

While we have to wait and watch Mid Valley's progress report, Eswaran reiterates he is creating a corporate model for the south Indian entertainment industry.

While Thambi has ensured a reliable status to Mid Valley, no one in the company wants to talk about its English production Infinite Justice, that according to a press release was supposed to premiere at Cannes this year.

Will Mid Valley repeat a Thambi? There's just one way to find out. Keep watch.