Reliance MediaWorks Ltd, a film and entertainment services company and part of Anil Dhirubhai Ambani Group (ADAG), has entered into a strategic alliance with Hyderabad-based VenSat Tech Services Pvt Ltd to expand its visual effects, graphics and animation offerings in the southern Indian market.
The partnership will enable Reliance MediaWorks to enhance its VFX and CGand animation capabilities, and also set up a studio in Chennai that will cater to the growing needs of the media and entertainment industry in the region.
However, financial details of the alliance were not immediately available.
As a part of the deal, Venkatesh Roddam, founder & executive director of VenSat, will be joining the Reliance MediaWorks management team as the chief executive officer of its entire film and media services division and will report to Anil Arjun, CEO of Reliance MediaWorks.
At 11.47 am, shares of Reliance MediaWorks (company valued at $75 million) were up 5.59 per cent on the BSE and were trading at Rs 88.8 per unit. Shares of the company have fallen 62 per cent since the beginning of 2011, compared to 21 per cent fall in the main benchmark index.
Incidentally, in December last year, VenSat raised an undisclosed sum from IndoUS Venture Partners â€“ pegged to be around $10 million, according to media reports.
Incorporated in 2009 by Venkatesh Roddam, VenSat offers 2D and 3D conversion services, as well as customised 3D animation in India. The firm also creates visual effects for TV, commercials and feature films. VenSat has strategic partnerships with IndoUS Venture Partners and Annapurna Studios Pvt Ltd, and has operations in the USA. VenSat is also globally known for working on the highest-grossing films in India in 2010 and 2011, namely, Dabangg,Robo, Bodyguard and Ra.One.
"This alliance is a strategic win for Reliance MediaWorks for a number of reasons. First, VenSat gives us direct presence in Chennai and enables us to strengthen our reach in the southern film market. Second, VenSat's creative and technical expertise adds depth to our existing VFX, CG and Animation capabilities," commented Anil Arjun.
"This alliance will allow Reliance MediaWorks and VenSat to leverage and complement their combined strengths and competencies to create synergies that would augment the market place," said Satyanarayana Mudunuri, executive director and co-founder of VenSat Tech.
In July 2011, Reliance MediaWorks also tied up with Los Angeles-based Digital Domain Productions to provide big-ticket visual effects and set up 3D stereo production services studios in Mumbai and London.