Bollywood is beginning to enjoy the benefits of corporatisation. As the world’s largest film industry organises itself into a bigger and better-managed entity, it’s being helped along by a steady infusion of funds, not the least from private equity (PE) investors, who have been pouring money into sectors like infrastructure and real estate. Although PE activity was slack in 2007—and no one is willing to give out details—experts believe that the New Year may see a lot of development on that front. With the industry growing at a frenetic pace, everyone agrees that filmmaking in India is no more the job of an individual producer or financier. Second, the growth of the film industry has attracted PE players the most. Third, with the onset of corporatisation, foreign investors feel investment in the film industry is a safe bet. According to a study by FICCI-PricewaterhouseCoopers, the size of the entertainment industry, which was pegged at Rs 8,400 crore in 2006, is likely to double by 2011. So, how are PE funds being routed to the industry? Experts say equity is coming into the industry through both foreign and domestic routes. According to reports, some of the big film production houses are in the race for PE funds to fuel their business growth plans. The trend began last year when PE investors like 3i, Cisco and Oman International Fund invested Rs 552 crore in the media and entertainment house Nimbus Communications—producer of films like Sarhad Paar, which flopped, and the Sanjay Dutt-starrer Yakeen. PE funds have got more aggressive plans in the movie sphere in the future. […]