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MUMBAI: For the Bollywood industry which is keen to tap the
overseas market, there is good news. The Export-Import Bank
of India (Exim Bank) is willing to loosen its purse strings
and has extended funding to the tune of Rs 2 billion for eight
movies during the current fiscal.
Exim Bank, in fact, has funded the recently released Yash
Raj Films' big ticket movie Dhoom 2. "We have
lent Rs 2 billion to the film industry this fiscal,"
Exim Bank chairman & managing director TC Venkat Subramaniam
tells Indiantelevision.com. "Our total exposure to the
sector is Rs 4 billion."
Of the other Yash Chopra movies funded by Exim Bank are Veer
Zaara, Hum Tum, Bunty Aur Babli and Dum. The Bank has also financed
Don (Rs 100 million) and Mangal Pandey - The rising (Rs 80 million).
Exim Bank has been funding Hindi movie projects which have a
potential to earn foreign currency revenues in the overseas
market.
Animation is another area in the entertainment sector that
has drawn the attention of Exim Bank. It is eyeing the option
of picking up equity in start-up animation companies. "With
their outsourcing models, animation companies in India have
the potential to grow. Apart from prividing debt, we may consider
equity participation in the start-ups. But for the companies
which are listed and are already enjoying high valuations,
it doesn't make sense for us to enter as equity partners because
they are already highly valued," says Subramaniam.
Exim Bank is in talks with an animation company to provide
finance for the expansion needs. With Crest Animation Studios
Ltd, it has already agreed to lend $7 million to Crest Animation
Studios Ltd.
The Bank has extended lending to over Rs 4 billion for film
projects which have potential to earn foreign exchange. "We
are not only financing on production but also on the overseas
distribution side.
Noted film producer Bobby Bedi will approach Exim Bank to
discuss his new project Mahabharata for which he plans to
invest Rs 3-4 billion. Bedi is considering institutional financing
for the epic project which will extend to a talent hunt, TV
series, film trilogy, gaming, animation and a theme park.
"Bedi is looking at an innovative financial structuring.
He is taking the project to financial institutions. He is
also going to approach Exim Bank for this," an industry
source says.
Exim Bank will examine the cash-flow situation of the project
as it spans over different formats and will take a longer
period to complete.
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