Balaji Tele to invest 900 mln rupees in Star venture

Balaji Telefilms Ltd. plans to invest 900 million rupees over two years in its joint venture with the Star group as its aims to increase revenues from non-Hindi television programming, a senior official said
The television serial producer plans to boost revenue streams from its regional television content, overseas content and movies, apart from its core strength in Hindi family drama for television.
"This year we expect to expand south Indian television content to 900 hours," the official, who did not wish to be named, told Reuters on Wednesday. Balaji also expects to generate about 875 hours in Hindi programming, he added.
"What we intend to do with the joint venture is make the pie bigger," another official said. "The south by itself has tremendous potential."
Balaji's venture with Star, formed in April, plans to launch at least seven regional channels in two years, including Tamil and Telugu channels by September.
Currently, Balaji, whose popular prime-time shows include 'Kyunki Saas Bhi Kabhi Bahu Thi' and 'Kahaani Ghar Ghar Ki' has four south Indian language shows on the Sun TV network.
It also plans to launch shows to cater to Friday-to-Sunday audiences.
Star, which holds 26 percent in Balaji, through its unit Asian Broadcasting FZ LLC, sources more than 80 percent of Balaji's content. Star also has the first right of refusal on its content.
Balaji expects a 15-20 percent growth in net profit and net sales in 2007/08, and hopes to maintain net profit margin at 25 percent, officials said. In 2006/07, it reported a net profit of 797 million rupees on net sales of 3.17 billion rupees.
MOVIES, OVERSEAS CONTENT
The firm's much awaited movie--Shootout at Lokhandwala--will be released on May 25. "If we have got success then we could have 8-10 releases in 2008/09. We're waiting for the results on this movie," said the official.
While Balaji made no movies last year, it expects 10-15 percent of revenues from the segment this year.
Balaji has also started making television shows for the overseas markets. Its first show would be aired in Dubai in June, followed by one each in Sri Lanka and Indonesia.