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Ashtavinayak lines up Rs 457-cr expansion

January 19, 2010 02:51 IST

Shree Ashtavinayak Cine Vision, the film production company, plans to invest Rs 457 crore to expand its movie entertainment business.

It has formed two subsidiaries, Shree Ashtavinayak Lights Camera Action and Shree Ashtavinayak Dream Pictures. While the holding company will continue churning out mid-and big-budget movies, SALCA is looking to acquire or set up a studio, which will deal in both pre and post-movie production.

Through SADP, the company will make small-budget films in the range of Rs 5 crore to Rs 15 crore, and will acquire films to distribute in the overseas market.

"We intend to produce eight to 10 films in the next financial year. Currently, most of the projects are at various stages of production," said Dhilin Mehta, Chairman & Managing Director, Shree Ashtavinayak Cine Vision.

The company has been distributing movies in the Mumbai territory. Mehta said the company has distributed around 45, including Jab We Met, Golmaal Fun Unlimited, Golmaal Returns, Kidnap, Blue, Maine Pyar Kyon Kiya and Luck, Bhagambhag.

"Recently, the shareholders approved a 4:1 bonus share issue. Four new shares against one share held, which has resulted in investor wealth creation. Going forward, we intend to raise an additional Rs 300 crore through our subsidiaries. We are in talks with domestic and international investors to raise funds," added Mehta.

BS Reporter in Mumbai