Download Filmifunding Some numbers reflect the bottom line. Some

BUS
I N E S SIN
D I A
.
March 23, 2008
Market News
Filmi funding
Bollywood
badshahs
could see fresh funds flowing
.
.r-
Some
numbers
reflect the
bottom
line.
Some
in
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t
1.1 N [
Godhwani and Talwar: focus on the business of show business
I
n the first week of March, DelhiFor the technical support and vetbased Religare Enterprises together
ting of the investments Religare has
with Vistaar Entertainment Ventures roped in Vistaar Entertainment Venannounced the launch of a new fund tures promoted by Sheetal Talwar.This
christened the Vistaar Religare Film VRFFwill be the first in market product
Fund (VRFF).And if approved by the and will invest in film projects in India
and overseas. "The fund will focus on
capital market regulator as a venture
capital fund, it could change the face 'the business of show business...' and
of high risk film financing to a de- provide ample opportunity for new
risked model.
directors, talent and writers. With a
"The fund will provide a profes- strong investment committee, the key
sional vetting process to check the to successis the choice of strong scripts
commercial viability, following a that will be the touchstone of the
strategy. The
banking risk based model rather than funds investment
a production corporate model. We attempt will be to create a scenario that
will invest in projects through specific offers viewers more choice of selection
special purpose vehicles (spvs) which and looks beyond the traditional 'Star'
system," explains Talwar.
would typically have an 18 month
Vistaar Entertainment Ventures is
investment horizon," explains Sunil
Godhwani, CEO and MD, Religare the holding company of The Friday
Fund and WSGpictures. "Our first film
Enterprises, who believes in innovations and through this film fund is venture 'Dharm' (2007) redefined the
economics of film making in India by
looking at spotting new opportunities
for creating and maximising wealth recovering the production costs from
for investors in the business of enter- non traditional theatrical territories.
tainment and films. As per God- Vistaar Entertainment Ventures is drihwani's plan, in the first round the ven by the belief that the Indian Film
fund will have a corpus of Rs200 crore Industry has to gain its rightful place
and would be close-ended with a lock- in world cinema and that shall hap.n period of five years. "Since each pen by utilising the depth of talent
film project takes 12-18 months we that exists in the Indian marketplace,
cannot have an open-ended fund like along with creating production
any other mutual fund. Hence the processes, financial systems and marinvestors who come in will also"be keting & distribution that are transtypically those who can invest in parent, mutually beneficial and
eXcessof RsSlakh and stay put for five innovative," adds Talwar.
. LANCELOT JOSEPH
years," he added.
. 129.
.
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