Video Age International September-October 2011

V I D E O • A G E OC T O B E R 2 0 1 1 32 T o o n i n g U p Usually at MIPCOM, international TV execs are accustomed to seeing only a small delegation, around 10 or so, of Indian TV companies with stands. But, behind this modest façade orbit some 60 companies, active mostly in animation, all represented in Cannes. In turn, around 300 additional animation houses of varying sizes revolve around these companies, cumulatively giving work to a reported 12,000 animators nationwide. It’s no secret that the Indian animation biz is on the rise, bursting on the international scene to challenge the dominance of the Philippines, Taiwan, Korea and China as the go-to destination for affordable animation production. In its June/July 2011 IssueVideoAgereported on the increasing investments funneled to Indian animation that currently generate an estimated U.S.$700 million a year and are expected to reach the billion dollar mark by 2013. As a sequel to VideoAge’s first report, we looked into India’s six key animation houses, out of the main 19 companies, with the assistance of AnimationXpress, an online publication focusing on the business side of Indian animation. CEO Anand Gurani had a lot to say about India’s meteoric rise in the animation industry. “At present,” he said, “Indian animation is in a stage of consolidation and silent, solid evolution where the men are beginning to stand apart from the boys.” He elaborated, “Business models are being revisited, the stronger companies are growing even stronger and more global, while innovation and very specialized focus are emerging as key factors in making the smaller ventures stand out and survive.” Gurani listed as India’s top animation houses: DQ Entertainment, Prime Focus, Crest Animation, Prana, Tata Elxsi, Big Animation, Rhythm & Hues, Technicolor, Dreamworks Dedicated Unit, MPC, Accel, Greengold, Krayon Pictures, Toonz Animation India, RelianceMediaworks, Pixion, Animagic India, Eksauraus and Indian Artists. Kerala-based Toonz Animation is regarded by some as the country’s top animation house. It was established in 1999 by U.S.-based businessman G.A. Menon, and is supported by multibilliondollar Geneva-based Comcraft Group. Though the Indian animation industry was jump-started by countries in the west commissioning projects, the key to Toonz’s success may be that it looks beyond the outsourcing model. Within two years of its founding, Toonz higherups started to move away from the animation-for-hire model and into co-production. As Toonz CEO P. Jayakumar put it, “We realized that the real business was not in outsourcing but in co-producing and owning IPs. This resulted in the making of Tenali Raman (2002), which was India’s first animated TV series, andHanuman (2007), India’s first animated feature film.” Said Jayakumar, “Now we are a major player in the international animation arena and have set sights on becoming a high-end feature film producer for the world-market.” In the 12 years since it opened its doors, Toonz’s staff of animators has grown from 65 to 400. It lists among its international clients Italy’s Rainbow, the U.S.’ Marvel Studios, the BBC, Cartoon Network Asia and many more. Plus, like many growing Indian animation companies, Toonz has also opened an office in Los Angeles. But perhaps most important to Jayakumar and his team are domestic projects. Toonz aims to do at least three domestic and three international projects a year, ensuring that homegrown Indian content is not neglected. Toonz’s growth has largely been facilitated by cheap skilled labor. Jayakumar pointed out, “Animators in the U.S. cost about $125 an hour whereas in India they cost $25 an hour. With low production costs and a huge pool of skilled labor, India boasts many leading animation companies responsible for generating creative and good quality content. There are lots of animation companies that have come into this field now.” One company that Jayakumar pointed to as a major competitor is Crest Communications. Like many of the top tier houses, Crest’s headquarters are in Mumbai. In 2010, Crest’s outsourcing facility delivered 250 30-minute episodes of television and 12 DVDs including big titles such as Little Engine That Could, Casper, Arthur and more. Its CGI team numbers 500, and like Toonz, it has expanded to a Burbank location to better take on Hollywood. Crest is known primarily as a pioneer of special effects. Another top contender is Mumbaibased Tata Elxsi (see VideoAge’s June/ July Issue for an in-depth profile). Tata Elxsi also opened a Santa Monica office, and partnered with A Squared Entertainment on high profile series The Governator featuring Arnold Schwarzenegger, until the project was cancelleddue to Schwarzenegger’s recent personal scandal. In addition to the short-lived A Squared co-production, CEO Subramaniam Ramadorai highlighted collaborations with Disney and YFR Productions. Like Toonz’s Gurani, Tata’s Ramadorai and company are slowly branching out into original production. But Ramadorai’s approach is conservative. “We believe that it is important for us to focus on a portfolio right from simple outsourcing to co-production and production,” he said. Tata’s success has also been a result of its emphasis on training and quality control. Ramadorai sends creative staff to train at UCLA in order to keep their skills on par with global standards. Said Ramadorai, “While the cost factor is a significant attraction for considering outsourcing of animation work, we need to ensure some key aspects to scale the quality to a level of consistency expected by the international market.” Also based in Mumbai is DQ Entertainment. Founded by chairman and CEO Tapaas Chakravarti, DQ churns out material for a roster of big international names in Europe, North America and Asia, including Nickelodeon, The Disney Group, TF1, RAI, ZDF Germany, NBC Universal, Sony Pictures Entertainment and many more. DQ also boasts an impressive resume, with a slew of awards under its belt including honors from the Daytime Emmys, the Pulcinella Awards from Italy’s Cartoons on the Bay and others. DQ prizes its position on the forefront of technology. Producer and chairman Chakravarti announced that the company has several stereoscopic 3D films in the works. Projects include The Jungle Book, which is slated to be released in 2012 or 2013, The Adventures of Peter Pan set for 2013 and The Phoenix and The Flying Carpet, which will hit theaters in 2014. Not all the heavy hitters are from Mumbai, however. Technicolor India is based out of Bangalore, and has a 1,000-animator strong staff that has worked on blockbusters such as Kung Fu Panda and Penguins of Madagascar. Technicolor’s Biren Ghose noted that there is still room for his company to grow larger: “We are just about scratching the surface when it comes to sales and business development.” Plus, there’s Accel Animation Studios in Chennai, which has only been around since 2006, but has already expanded to a second production facility in Thiruvananthapuram. Chairman N.R. Panicker heads a team of 250 animators specializing in 3D animation. As for the future of the industry, it looks like there is only more growth on the horizon. AnimationXpress’ Gurani predicted, “The future hints at a lot more international players opening their next facility in India and several Indian companies going out and engaging internationally. The world is coming to India even as Indian animation is embracing the world.” ES Indian Animation Houses Set For Growth And Consolidation Toonz’s P. Jayakumar Anand Gurani, CEO of AnimationXpress

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