Focussing on profitable partnerships

11 December 2000

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.