MUMBAI: Asian-based investment bank Nomura will be investing $16 million in India’s Real Image Media Technologies Pvt. Ltd., which is a provider of digital media and entertainment technology.
The company has operations across North America, Europe and Asia and also operates digital cinema screens.
Led by Nomura’s Asia Merchant Banking team, the financing transaction will allow Nomura to support the booming consumer services and media entertainment industry in India, and in turn contribute to the country’s economic growth.
Established in 1986, Real Image and its wholly-owned North American subsidiary Qube Cinema Inc. provide digital cinema technology solutions that address not just the needs of cinema houses for digital cinema equipment and content, but also encompass the needs of the media and in-cinema advertising industry in India.
Real Image has developed a digital cinema product that follows the requirements of Digital Cinema Initiatives (DCI) – a consortium formed by major motion picture studios such as Universal Studios and Warner Bros. to establish a standard architecture that ensures a high level of technical performance, reliability and quality for digital cinema.
India’s film industry has been experiencing robust growth in recent years, with around 900 films produced annually, and domestic box-office revenues of $2 billion which is expected to grow at over 10% per annum in the next few years. With the increasing number of mid and higher income households as a result of the country’s economic growth, and a growing young population, a larger pool of the population is willing to spend more on a higher quality cinema experience. This creates a more lucrative entertainment market, opening up more opportunities for the cinema value chain. For Real Image, this represents tremendous opportunities as the demand for its distinctive technology expands.
"Real Image has powerful end-to-end digital cinema solutions and proven business models that it is seeking growth from. This funding will help it accelerate the growth it is seeking in India and other markets across the globe," said Real Image co-founder Jayendra Panchapakesan.
"Real Image has an experienced management team and a solid track record in digital media solutions. We see great potential in this growing sector and look forward to being part of Real Image’s exciting journey to win and maintain a leading position in the industry. Our investment in Real Image demonstrates our commitment to India and to building up our merchant banking business across Asia. We believe that by providing financial and management support to companies with strong prospects for growth, we will be able to contribute to growth in India and the rest of Asia," said Nomura head of Asia merchant banking Yoshiki Hashimoto.