$28 million for PVR Pictures

Venture capital outfits invest in cinema chain

By PATRICK FRATER

BANGKOK – PVR Pictures, the movie-making arm of India's second largest cinema chain PVR, has received a cash injection of INR1.2 billion ($28 million) from two venture capital outfits.

ICICI Venture Funds Management Co Pvt Ltd and JP Morgan Global Special Opportunities Group will each invest $14 million, with the coin going to expansion of the unit, which aims to double its movie output to 8-10 pictures in 2009.

"We are confident that the equity partnership with JP Morgan and ICICI Venture will help us rapidly realize our ambition of making PVR Pictures one of the leading companies in the content production and distribution space in Indian market," said Ajay Bijli, managing director of PVR in Bangkok where company outlined distribution plans for "Contract," a big budget thriller helmed by Ram Gopal Varma.

The company's first movie production was "Taare Zameen Par," a big hit it co-produced with Aamir Khan Productions.

Bijli says the injection into the film-making unit will allow for further expansion of the parent group. Founded as a joint venture with Village Roadshow PVR is now a stock exchange-listed company with 22 cinemas in locations including Delhi, Gurgaon, Mumbai, Bangalore, Hyderabad and Lucknow.