Anil Ambani to float Reliance Films

MUMBAI: The Anil Dhirubhai Ambani Group is floating a new film distribution company called Reliance Films. The move comes after nearly six months after acquiring the Adlabs Films, which is essentially engaged in overseas distribution of films. Reliance Films will tap the domestic market distribution with the group planning to pump in Rs 400 crore (Rs 4 billion) during the year 2006-07. The idea is to streamline the business.

Reliance Films distribution plan will also include buying all other rights including television, DVD, DTH, broadband, IPTV and overseas distribution rights. The company plans to distribute over 24 films in the current financial year and raise the number to 40 next year. The company will get into exclusive contracts with distributors, making the film a solely Reliance Films release worldwide.

Reliance Films aims at capturing the entire value chain of filmmaking to provide an exploitative platform for producers. In the sense, producers working with Reliance Films will be paid the cost of production of the film and an additional 10 per cent as minimum guarantee. Once the company recovers the guarantee amount, Reliance Films and the producer share the profits on a 50-50 ratio scale.

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