(26 July 2007 8:15 pm)

MUMBAI: India's oldest music company Saregama India Ltd is planning to float a joint venture company with Australia-based Regency Media for manufacture and sale of optical media.

While Regency Media proposes to hold 74 per cent in the joint venture, Saregama will have 26 per cent. The board of Saregama, which met on Thursday, has taken this decision.

"We realise there is a huge opportunity in doing physical front delivery. We have in-principle approved for investing in a new joint venture company which will be incorporated in India alongwith Regency Media. But this is subject to several conditions being met," says RPG Enterprises - Entertainment sector president and CEO Subroto Chattopadhyay.

Regency Media has an electronic manufacturing output of over 40 million DVDs and 25 million CDs.