Pyramid scales Chinese entertainment wall

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Chennai, Apr 19 : Chennai-based Pyramid Saimira Group, the second largest full-fledged entertainment company in India after the Zee group, has become the first in this segment to enter China in a big way. The company will not only help the Chinese government in transforming cultural and entertainment activities there through exchange programmes with India in traditional arts, cultures and entertainment, but also will do a brisk business with its end-to-end expertise in the entertainment sector.

To capitalise on the $2-billion Chinese entertainment industry, Pyramid Saimira group has entered into two separate agreements—one with the state-owned China Society Music Research Board (CSMRB) and a 50-50 joint venture agreement with Jiangsu Longzhe Group, said Pyramid Saimira managing director P S Saminathan. Jiangsu Longzhe group is a state licensed company dealing in entertainment business.

“We are investing Rs 400 crore initially into two different joint ventures—Rs 100 crore into a JV with CSMRB and Rs 300 crore into another with Jiangsu Longzhe,” Saminathan said. Under the agreement with the CSMRB, the company will help the Chinese ministry of culture in exchange programmes with India, organising event management programmes, promoting traditional culture and arts etc.

“We are investing Rs 100 crore and are not looking at any immediate profit. This will only provide us a platform to enter the Chinese market in a big way,” Saminathan said.

The second JV—with the Jiangsu Pyramid Longzhe Group—will be the next stage where Pyramid will invest Rs 300 crore in the first year with the Chinese company also investing an equal amount. “This JV is purely a business one and we hope to earn a revenue of $500 million by 2010,” he said.