Disclosing this to FE here, Anindya Roychowdhury, associate director, KPMG India Private Limited, said, KPMG is holding talks with leading film industry personalities, FIs and potential corporates in India for a possible creation of VC fund so as to make the industry more stronger and vibrant and become one of the major players in the economy in the years to come.
Though the government has cleared 100 per cent foreign direct investment (FDI) on film financing, KPMG feels it is better to start a venture fund with a corpus of $40 million to $50 million pooled out from the industry itself, Mr Roychowdhury, who was in Hyderabad on Friday to attend the India-Asean Summit, said.
While IDBI and BoI have already entered into this sector in a small way, and the recent announcement by the Tatas shows that there is a greater scope for the leading corporates to enter the film financing by sponsoring the creation of a VC fund/company, he asserted. There is every possibility to have a studio like that of Universal, MGM and Disney World in India, he said. It is only a matter of time before all the concerned players come together to see the film industry growing in a major way. We at KPMG believe that this industry can be another sunrise sector, he added.
At a later stage, if needed, KPMG would assist the industry in bringing the foreign investment to see the industry grows faster. The foreign media and entertainment companies, with whom KPMG held discussions in the recent past, were keen to enter Indian film industry, he claimed.
If the fund is created, the film industry can heave a sigh of relief as they can get the funding at affordable rates with a easy time schedule which has not been in the case now - not to mention the scourge of the underworld.
KPMG would assist in deriving the modalities and other rules and regulations, he said. KPMG is identifying the prospective financiers, corporates, FIs and other film personalities who can play active role in creating such an important fund. The fund, once created, would be managed by professionals, he added.