Zee Entertainment Studios (ZES), the motion pictures division of Zee Entertainment Enterprise Ltd (ZEEL), may list its two divisions ? Zee Motion Pictures and Zee Limelight – on the London Stock Exchange?s AIM (Alternative Investment Market).
ZES requires a funding to the tune of Rs 800 crore in the next two years and it is likely to be raised through the overseas listing and E-City Ventures, Zee group’s cinema infrastructure and real estate arm, which is also the holding company for Zee group?s entertainment brands, such as Fun Republic, Fun Cinemas, E-City, EPMS, and E-City Media.
Zee Entertainment Studios (ZES) launched two labels – Zee Motion Pictures for mainstream films and Zee Limelight for modestly budgeted films targeted at niche audiences.
The business model includes production of films in-house and own all IP rights in perpetuity, co-productions targeting 50% IPR to de-risk or work with leading talent, acquiring distribution and marketing rights to films to exploit revenue opportunities, gain access to leading talent and fill out the yearly distribution pipeline as needed.
Going forward, the company plans to ramp up of production activity in fiscal 2009, in association with filmmakers including David Dhawan (1 film), Anil Sharma (2 films), Sameer Karnink (3 films), Guddu Dhanoa (3 films). The company is targeting 10 Hindi films co-production and acquisitions, out of which seven films will be released in 2009.
Overall, there will be12 releases in FY09 with five in regional language films.
The company is also setting up its own distribution offices both in domestic and international markets. The international markets include London, US, Australia, Dubai and UAE. Out of this, eight domestic locations will be leveraged through the group’s fun multiplex and E city theaters as preferential distributors.
The company is trying to acquire preferential satellite rights to ZEEL and Dish TV, and exploring international opportunity for merchandising and distribution.
The company is expecting the revenues to grow to Rs 3,200 crore from Rs 300 crore with EBITDA at 30% plus.
It is also learnt that the capital for ZES once structured will be presented to the board of directors and upon the approval from the same the company will move forward with the listing on AIM. E-City ventures will partner this with distribution and exhibition through their network of cinema halls. ZES will use all possible support from Zee Network. ZES is spearheaded by Punit Goenka, who is the whole time director, Sanjeev Lamba as director marketing and sales and Deepak Sharma as director production. The division is in the process of hiring a team that will eventually be located in 15 domestic and international locations.