After hiving off its software business, undergoing a name change and spinning off its web-casting division into a separate company, Chennai-based Pentamedia Graphics Ltd, is now highly focussed on its core competency. This is evident by the partnership deals it has been signing in the recent times.

The focussed approach assumes significance in view of the large number of user groups for animation works, though cinema and television continue to be the largest amongst them.

In April this year, the company signed up a 50:50 joint venture with 3dMax Media Inc. of the US investing $2.5 million. The partnership is to digitally bring back the legend of actors who are no more. This is being done through high-end digital entertainment content using cutting-edge tools for Internet, cinema and TV media.

Another 50:50 joint venture with Digital Domain, USA was formed with an equity base of $10 million to deliver special effects. "We will start deriving the benefit of this venture in couple of months time," assures Dr. V. Chandrasekaran, chairman and chief executive of Pentamedia.

Speaking about the company's high profile acquisition, Film Roman Inc, USA for $15 million, Dr. Chandrasekharan says, "We have been working together for quite sometime. In two years time we will recover our investment in Film Roman," he exudes confidence.

According to him, Film Roman's loss is not due to lack of orders but due to its high costs. Now with the US company in its bag, Pentamedia will execute 50 per cent of the orders booked by the former and thereby making Film Roman competitive.

The company also has strategic alliances with Creek & River, Silicon Graphics, Hewlett Packard, Auto Desk, Apple, SGI, StanLee Media (conversion of 2D into 3D and other 2D production).

The underlying principle in all these tie-ups and acquisitions is to bridge what Pentamedia now lacks to be truly a global player in the animation industry viz. creativity pool.

Says Mr. Robi Roncarelli, editor and publisher, Pixel-The Computer Animation Directory, USA, "Pentamedia, like many offshore computer animation production companies, offers low costs due to lower labour rates. That is their main strength. They lack creative ability and depth, which is the forte of US-based companies."

According to him, Pentamedia is trying to overcome that gap by making associations with companies in the USA, Japan, etc, but will mainly remain as a low cost production source until Pentamedia itself can amass creative experience and build a reputation.

"Technical excellence will get the job done, and garner business, but the biggest returns go to the creators or originators of the content. Major players in the industry are mainly the USA, Canadian and UK companies, with a few in Australia and Europe as well.

The biggest, most influential, are in the west coast of USA", Mr. Roncarelli adds.

Speaking of labour costs he says, a computer animator in India makes $ 7-9,000 at the most whereas in the US the salaries range from $45,000 to $90,000 with higher creative people earning over $100,000.

According to him, it is a misnomer to call employees of several off shore companies as computer animators instead of computer operators as they only know how to operate the computer system efficiently and quickly.

Asked to compare Pentamedia with Disney Studios and Industrial Light Magic he says, "One major difference is that Disney and ILM use animation in the production of their films - their source of revenue is the box office, and the animation they produce is a means to that end, as is cinematography."

"Pure producers are competing to produce that computer animation, and that is their main source of revenue. Pentamedia is trying to rise above pure production services, but the company needs to grow into that role from within as well by making associations with other companies where its main contribution is low-cost production capability, no matter how good that capability is - and Pentamedia is good."