MUMBAI: DQ Entertainment has entered into a Memorandum of Understanding (MoU) with Percept Picture Company for co-production of three animated feature films.

This is in line with DQE’s strategy to invest in co-production to obtain larger percentages of the global intellectual property and distribution rights in its productions.

DQE and PPC have agreed to co-develop three animated feature films, two of which are in the mythology genre and the third film will have a strong Bollywood theme and an estimated budget of approximately $25 million. The films are planned for release in 2009 and 2010.

DQE chairman and CEO Tapaas Chakravarti said, “Bollywood’s foray into animated Indian feature films with Hanuman has triggered many announcements of animated features by Bollywood houses. The business proposal and co production understanding between PPC and DQE is aimed at bringing high quality story telling and visuals and international success to India. We are excited about our plans with PPC and committed to produce high quality animated films from India for the world.”

Percept Limited joint MD Shailendra Singh added, “We promise to deliver the finest quality entertainment to the world audience through our association with DQE. The Indian animation feature market today finds itself at unprecedented values since the huge hit Hanuman in 2005. The movie not only smashed records in the animation segment, but went on to achieve further heights when it broke DVD sales in 2006 followed by the release of PPC’s Return of Hanuman in 2007.”

The Indian animation industry is growing by leaps and bounds and according to Nasscom, the Indian animation industry, which is now pegged at $550 million, is expected to grow over 30 per cent annually in the next couple of years and reach a level of $1.3 billion by 2010.