Private and Confidential CAT - II Alternate Investment Fund SEBI Approval Awaited - Elara Wealth
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Private and Confidential CAT - II Alternate Investment Fund SEBI Approval Awaited
DISCLAIMER
This confidential presentation (this “Presentation”) is being furnished upon request and on a confidential basis to a limited number of sophisticated investors on a “one-on-one” basis for the
purpose of providing certain information about The StoryTellers Fund (“the Fund”) a proposed scheme alternative investment fund (called Elara Alternative Investment Fund) which has
applied for registration with the Securities and Exchange Board of India (“SEBI”) as a Category II AIF under the SEBI (AIF) Regulations, 2012 (“AIF Regulations”). This Presentation is
intended only for the benefit of potential investors to whom the presentation is made or delivered for the purpose of considering a possible investment. This presentation is for informational
and discussion purposes only and is not, and may not be relied on in any matter as legal, tax, investment, accounting or other advice or as an offer to sell or a solicitation of an offer to
purchase any units of the Fund. Any such offer or solicitation shall only be made pursuant to final confidential private placement memorandum (as amended or supplemented from time to
time, the “Memorandum”/”PPM”), of the proposed Fund which will contain numerous disclosures concerning the risks of investing in such Fund. Elara Story Tellers Advisory Private Limited
is proposed to be appointed as the investment manager (the “Investment Manager”) of the Fund. Any reproduction hereof in whole or in part, or the disclosure of its content or the
distribution of the presentation, without the prior written consent of the Investment Manager is prohibited. The Contents of this Presentation are provisional and may be subjected to change
without prior notice. The information contained herein is proprietary and for recipient’s internal use only and is qualified in its entirety by reference to the PPM and other definitive
documents of the Fund. Certain information contained herein (including targets, forward-looking statements, economic and market information) has been obtained from published sources
and/or prepared by third parties and in certain cases has not been updated through the date hereof. While reasonable care has been taken to ensure that the information included herein is
correctly and fairly represented the Investment Manager and other parties involved in the preparation of this Presentation hereof assume no liability for the relevance, accuracy or
completeness of the contents herein. In making an investment decision, potential investors must rely on their own examination of the fund documents and the term of the offering, including
the merits and risks involved. Before making an investment, each potential investors should make its independent assessment, due diligence, and inquiries and consult its own advisors as to
legal, business, tax and related matters concerning an investment in the Fund.
All photographs, visuals, images of stars, movies and posters are used only for representational purposes and the Fund doesn’t have any right on any of these images. The copyright of
the images, posters and drawings used in the presentation belong to their respective creators.
By accepting this Presentation, the recipient agrees that it will, and will cause its representatives and advisors to, use the information only to evaluate its potential interest in the Fund and for
no other purpose and will not, and will cause its representatives and advisors not to, divulge any such information to any other party. In considering the investment performance information
contained herein, prospective investors should bear in mind that past, targeted or projected performance is not necessarily indicative of future results, and there can be no assurance that
targeted or projected returns will be achieved, that the Fund will achieve comparable results or will be able to implement its investment strategy or achieve its investment objectives.
The images of posters/actors/movies used in the presentation belong to their respective owners/individuals/producers and have been used solely for representational purposes only and the
Storytellers Fund or Elara Alternate Investment Fund has no copyright on the same.
© TheStoryTellersFund 2019
India’s
First
Regional Film
Fund
2
*SEBI registered CAT-II Alternate Investment Fund – Approval awaited
© TheStoryTellersFund 2019
Executive Summary
The Indian Film industry produces over 1700 films in 20 languages annually and is the largest film producing
country in the world. However, the gross box office revenues of $2.5bn is a fraction of the $11bn earned by
US films with just half the number of film productions, indicating a significant potential for growth for the
Indian film industry. The key growth drivers for Indian film industry are a growing middle class and increasing
per capita income, increase in screens and average ticket prices, growth of regional cinema and growing
revenue realisation from digitisation, international and ancillary streams. With various initiatives being
outlined for the Film Industry under the Modi government’s ‘Make In India’ program, and industry status
being granted to it, there is very high potential for growth given the enabling environment being created. Of
the 4 segments of the Indian film industry- Bollywood, Regional Tier-1, Regional Tier- II and Hollywood
movies, the Regional tier-II film industry is growing at over 40% rate driven by films with good content,
growing distribution, an increasing revenues due to a growing demand from satellite and digital platforms and
supported by government subsidies. There exists a proven and distinct opportunity to invest in the Regional
Tier-II movie business and earn a significant return. Early stage investors have seen very good returns on their
investments.
3
© TheStoryTellersFund 2019
The Story Episodes
1. Indian Movie Industry.
2. The Regional Opportunity.
3. Fund Structure.
4. The Investment Strategy & team.
4
© TheStoryTellersFund 2019
World's largest film industry, Over 1700 films released and
projected to grow at 10.5% 3.5 Billion Tickets Sold in 2018
CAGR to INR 236 Billion in and the highest ever collection
A Market of Immense Potential 2021 of INR 175 Billion at the box
office
A demographic with over 65% Indian Film Industry
of the population under 35 Grew at 12.2% in 2018 with
years of age with growing 17 films crossing the
disposable income INR 1 Billion Mark
India’s largest films
reached only 4% of
the population.
Dangal made INR 21 Bn Bahubali 2 made Risk minimization attributed Overseas collection had a
record 2018 at INR 30
(including INR 14 Bn INR 18 Bn through
to multiple revenue streams
including digital Billion from 125 movies
5
overseas) by selling 34 55 Mn domestic
Mn domestic tickets tickets
© TheStoryTellersFund 2019
A High growth potential in screens per capita A High growth potential in Average Ticket
Price
Screen penetration per million population
140 12
120 10
100
8
80
6
Ticket price in USD
60
40 4
20 2
0 0
India China US UK
ce
Ja y
Fr S
Ge UK
n
n
a
a
in
U
di
an
pa
ai
A Market of Immense
an
In
Ch
Sp
rm
Potential Films are getting bigger, as multiplexes grow
3
12000
10000
8000
Number of Screens
Number of Films
6000
10
4000
6
2000
0
2018 2009 2011 2013 2015 2017 2020p
In 2018, 4 regional films crossed the INR 1 Billion mark
Single Multiplex
• Single Screens in India now show up to 4 different movies a day to cater to audiences tastes © TheStoryTellersFund 2019
Indian Stories Growing Internationally
Screen Growth 2016-2018
60000 • In 2018, Indian films recorded their highest box office collection of INR 30 bn.
50000 • Dangal collected INR 1000cr in China.
40000 • Andhadhun grossed INR 350cr internationally, but only INR 80cr in India
30000
20000 • Indian Films have begun to expand beyond the traditional markets of US, UAE,
10000 UK & Australia.
0 • Ki & Ka was released in Ivory Coast, Zimbabwe and Gibraltar.
2016 2017 2018
• Bajrangi Bhaijaan in Morocco, Tunisia and Poland. Mary Kom in Kazakhstan, Azerbaijan,
India China USA and Kyrgyzstan.
Indian films in China (USD Mn)
Box office India, 2018
Film India China Worldwide
Dangal 84 193 310
Secret Superstar 10 117 130
PK 54 17 125
Bajrangi Bhaijan 48 13 116
3 Idiots 59 3 80
Bahubali 231 10 270 7
Hindi Medium 12 31 47
Total 486 353 1078
China has grown from 7000 screens in 2010 to 55000 in 2018
© TheStoryTellersFund 2019
Industry projected to grow at 10.8% CAGR by 2021;
Backed by multiple growing revenue streams
Digital Platforms
(INR Billion)
Stream 2017 2018 2019E 2021E
Domestic Theatricals 96 102 110 130
Overseas Theatricals 25 30 35 45
Broadcast Rights 19 21 23 26
Digital/OTT Rights 9 14 17 24
In-cinema Advertising 6 8 9 11
Home Video 0.3 0.2 0.2 0.1
155 174 194 236
Branded Content
8
Source: EY FICCI Media & Entertainment report, 2019 © TheStoryTellersFund 2019All White Now!
• The conversion of India’s cash economy to
cashless economy has a very positive impact
on transparency in the film business.
• Production expenses done through cheque
payments and online cash transfers now
increasing accountability of each rupee spent.
• With near complete digitization of the cinema
exhibition business, distribution yields are only
set to become better.
9
INDIAN PRIME MINISTER NARENDRA MODI © TheStoryTellersFund 2019Indian Film Industry: Lots of headroom for Growth
Worlds largest movie industry – annual admissions
over 3 Billion yet #3 in revenues after US and China
Under Screened:
India – 6 per Million ; China – 23 per Million ;US – 125 per Million
High Volume:
India – >1500 Films per Annum; US – 700 Films ; China – 90 Films
Low Ticket Pricing - ($2-$3 Compared To $12 In US)
Multiple revenue streams emerging with
significant growth in international and digital
revenues and growing domestic screen count
11
© TheStoryTellersFund 2019However, Bollywood = Indian Film Industry
Number of movies Share Number of movies Share
Language
2017 2017 2018 2018
Hindi 265 14% 238 13%
Kannada 210 11% 243 14%
Telugu 325 17% 237 13%
Tamil 310 16% 197 11%
Malayalam 150 8% 156 9%
Bengali 100 5% 105 6%
Marathi 120 6% 118 7%
Gujarati 75 4% 81 5%
Bhojpuri 80 4% 80 5%
Punjabi 40 2% 50 3%
Oriya 30 2% 37 2%
Others 80 4% 78 4%
English 150 8% 155 9%
Total 1935 100% 1775 100% 12
Source: FICCI EY Media and Entertainment Report, March 2019 © TheStoryTellersFund 2019Regionals now have >40% screens a week in Mumbai
Movie Screen Show
Language Movies Screens Shows
share share share
Hindi 10 380 1142 24% 52% 62%
Marathi 7 145 415 17% 20% 23%
Gujarathi 2 80 80 5% 11% 4%
English 5 27 70 12% 4% 4%
Malayalam 2 12 35 5% 2% 2%
Telugu 3 25 25 7% 3% 1%
Tamil 5 18 18 12% 2% 1%
Hindi-English D 2 16 16 5% 2% 1%
Punjabi 1 11 11 2% 2% 1%
Hindi - Reg D 2 4 9 5% 1% 0%
Bhojpuri 2 2 9 5% 0% 0%
Kannada 1 4 4 2% 1% 0%
42 724 1834 100% 100% 100%
Source: BookMyShow data Wk 4, 2019
Malayalam Film EZRA ad in Mumbai Mirror, Feb2017
13
© TheStoryTellersFund 20192018: When Small was Big
The top 25 small budget
Bollywood films delivered
a +16% return basis
producer share at the Box
Office,
while the Top 25 Big
budget films delivered a
negative 28% return at
the Box Office 14
All figures in INR cr; Net Box Office estimates include only 45% producer share. Excludes Telugu & Tamil Source: Box Office India, FilmInformation, Wikipedia
Psoters from left to right – Raazi, Badhaai Ho, Stree, ZERO, 2.0, Thugs Of Hidostan
© TheStoryTellersFund 2019…..While Regional Film returns were 107%
Naal (Marathi) Qismat (Punjabi) Sudaani from Nigeria Shu Thayyu? (Gujarati)
Budget: INR 2.5 cr Budget: INR 4.0 cr (Malayalam) Budget: INR 2.5 cr
Box Office: INR 31 cr Box Office: INR 30 cr Budget: INR 2.0 cr Box Office: INR 21 cr
Box Office: INR 26 cr 15
•Box Office returns from top 25 films in regional languages: 2017: 58%; 2016: 115%; 2015: 156%
•Satellite rights, digital rights, adaptation rights, dubbing rights and subsidy add to profitability
All figures in INR cr; Net Box Office estimates include only 45% producer share. Excludes Telugu & Tamil Source: Box Office India, FilmInformation, Wikipedia
Psoters from left to right – Naal (Marathi), Qismat (Punjabi), Sudaani from Nigeria (Malayalam) and Shu Thayyu (Gujarati)
© TheStoryTellersFund 2019Hollywood Rides on Regional
Bollywood BO Hollywood BO
Change YOY Change YOY
2009 1210 (NA) 194 (NA)
2010 1537 (27%) 294 (52%)
2011 1769 (15%) 332 (13%)
2012 2392 (35%) 455 (37%)
2013 2818 (18%) 364 (-20%)
2014 2738 (-3%) 448 (23%)
2015 2775 (1%) 626 (40%) Hollywood collects more than Bollywood per film
2016 2791 (1%) 770 (23%)
2017 3032 (8%) 825 (7%) Bollywood BO* Hollywood BO*
2009 13.30 3.23
2010 10.24 3.97
2011 13.82 4.96
2012 16.05 8.27
2013 16.20 6.87
2014 14.04 8.01
2015 13.25 10.43
2016 12.35 11.01
2017 12.34 14.47
16
*NDBOC – Net Domestic Box Office Collections INR Cr
Hollywood gets better yields with dubbed multiple Indian language releases © TheStoryTellersFund 2019Understanding the Regional
Market
17
Poster of Malayalam Film Jalakittu from director Lijo Jose Pellissery releasing in 2019 © TheStoryTellersFund 2019”Indian films are like our food or our sense
of dress or our languages: there's a great
variety, and it changes every 100 miles,
but there is something in common, an
Indian essence, that binds them all
together.”
18
Source: Brainy Quote © TheStoryTellersFund 2019Hindi Speakers
422 mn
450
400
The Regional
350
300
250 Mother tongue not
Language Speakers Speak English
150mn
200
150
100
Hindi(>30mn each)
Bengali, Gujarati,
Marathi, Punjabi and
50 Bhojpuri 267 mn
0
68% of India’s population speaks a
language other than Hindi as a
mother tongue
Don’t speak Hindi - Mother tongue not
Telugu, Tamil, Kannada, Hindi(10mn) Awadhi & 300 other
252 mn languages 19
240 mn
Source: Census of India, 2001
© TheStoryTellersFund 2019Regions are growing
GDP & Growth rates of Indian States, 2018
faster than India is 12.0%
11.10% 11.30% 11.20%
400
350
10.0%
Growth Rate %
9.30% 300
8.0% 9.10%
250
USD Bn
7.30% India 6.7%
The 9 states in the regional language 6.0% 6.20% 200
5.00%
consideration set have a 64% share of 4.0%
4.60% 150
India’s GDP and are growing at 9.68 % 2.0%
100
50
vs India’s growth rate of 6.70 %*,
0.0% 0
leading to potentially greater purchasing tra ra
t ar d b la ak
a
es
h al
sh ja Bih an nja ra at ad ng
kh Ke e
power and higher discretionary spends ah
ar
a Gu
Jh
a r Pu
Ka
r n
r aP
r
es
tB
M dh W
on entertainment. An
GDP USD Billion India's GDP Growth Rate GDP Growth Rate
20
Source: Budget Economic Survey 2018, Government of India; *CRISIL Report Indian Economy States of Growth 2.0, Jan 2019
© TheStoryTellersFund 2019Regional TV growing at 66%; a big movie market
250
200
Viewership (‘000)
150
100
50
0
Week 41- Week 26- Week 41- Week 26- Week 41- Week 26- Week 41- Week 26-
44 2015 29 2019 44 2015 29 2019 44 2015 29 2019 44 2015 29 2019
Movies Music News GEC
Marathi Gujarati Bengali Punjabi Bhojpuri
Marathi, Punjabi & Bengali languages have seen the Channel #channels #channels #channels Viewership
Language 2015 2019 growth Growth 15-19
maximum increase in new channels
Marathi 15 21 40% 93%
Gujarati 7 11 57% 56%
Bhojpuri Cinema channel GRPs are growing faster than the
Bengali 17 33 94% 40%
GECs/news
Punjabi 3 18 500% 134%
Bhojpuri 10 11 10% 7%
In 2019, Sun has launched a Bengali Channel and Zee a
Malayalam channel
Total 52 94 81% 66% 21
Telugu movie Yevadu dubbed
in Hindi on Sony TV
Source: BARC, 2015-2019 TV data, 4+ adults, All india for languages specified
© TheStoryTellersFund 2019India’s Growing Digital Appetite is Regional
Regional markets are growing digitally, have a growing appetite and are hungry for content.
Google Maps, facebook & Twitter have regional feeds in 6-7 languages in India now
Indian Language users to grow to
500Mn+
BY
2021
Powered by a low cost data
60% of the Growth to
come from Non-Hindi
22
Revolution
© TheStoryTellersFund 2019Defining The
Regional Opportunity
Bollywood Regional Tier-I Regional Tier-II Hollywood & Dubbed 23
(South Indian Non-Hindi speaking states) (Devanagari and Dialect states)
© TheStoryTellersFund 2019Regional Tier-II Set To Grow
Bollywood
Tamil
Bahubali
Telugu ( Telugu Film)
650Crores
Pulimurugan
Malayalam ( Malayalam Film )
125 Crores
KGF
Kannada ( Kannada Film )
250 Crores
Punjabi
Marathi Sairat
( Marathi Film )
Gujarati High Growth Potential 100 Crores
Markets
Bengali
Bhojpuri 24
Gross Box Office Revenues of the Top 10 Movies in Respective Languages
0-20 Crores 20-50 Crores 50-100 Crores 100-250 Crores 250-500 Crores 500-700+ Crores
© TheStoryTellersFund 20192.0 BILLION 150 MILLION
350 450-500*
25
3500+ 1500
*target 8 languages7 Key Factors Driving Regional Cinema Viability
Regional GDP growth Audience Hungry for Growing demand from High quality Talent availability at
fueling consumption Local content digital platforms a reasonable cost
Growing Television Rights National Multiplex Chains Playing leading to Significant Government
Revenues better box office collections & Other Subsidies
26
© TheStoryTellersFund 2019Realities are Myths
The Realities of Hindi Films are Myths of Regional Films
27
© TheStoryTellersFund 2019Myth
1
Stars Are Everything
28
#1 at the Marathi Box Office #1 at the Punjabi Box Office #1 at the Gujrat Box Office has a The highly successful Malayalam film
with first time star Cast is an animation film leading star cast most of whom had 86 first time actors
had never acted before
© TheStoryTellersFund 2019Myth
2
Films Need High Operating Budgets
The top 10
The top Punjabi film was The average budget to
Marathi Movies generated
made from INR 11 Crores produce, distribute and
a Revenue of INR 200
Crores from budget of and generated INR 70 market a Tier II Timepass (Marathi)
Crores at the Box Office Regional Film is INR 4-
INR 40 Crores in 2016
5 Crores
29
Premam (Malayalam)
© TheStoryTellersFund 2019Myth
3
Size Matters
The average Box Office performance for Top
The Best Bollywood studios with Regional Films don’t yet have an
12 Bollywood studios(totaling 470 films) is
>65% lifetime Hits are the ones organized Studio system, and
61% flop: 28% hit ratio compared to 51%
that have produced less than 10 focus on content rather than
Hits; 26% Flops for 22 Bollywood studios that
films volume Duniyadari (Marathi) Produced by ‘Dreaming 24/7’
produced only 165 films (atMyth
4
Needs Massive Marketing
Up to 40% of a Hindi Film budget is
required for marketing since the movie’s With digital marketing getting more
success window is only in the first effective, the regional movies are
weekend, but regional movies needed effectively able to use it to reach their
20% or lesser budgets and grow on well defined markets
performance
31
© TheStoryTellersFund 2019Myth
5
The More The Merrier
This Marathi film ”Sairath” released in only 250 This Punjabi Film was released in just This blockbuster Gujrati Film crossed
screens and in multiplexes with 1 screen yet crossed 100 screens initially but it went on the INR 50 Crore benchmark with a
Rs. 100 cr. Gross Box office turnover in 3 months as it to make over INR 70 Crores at the starting distribution of less than
32
grew screens basis word of mouth. box office. 100 screens, but ran in Mumbai for
over 90 days.
© TheStoryTellersFund 2019Myth
6
Only Mass Scale Masala Stories Work
Regional Stories have very strong cultural context and social messaging.
Well made regional films connect through a wide variety of original stories and raw new talent.
33
© TheStoryTellersFund 2019Regional Cinema: Over 58% of Indians
GDP growth in regions is
faster than India’s GDP
Diversified Risk and better speak a regional language
as their mother tongue.
growth. Regional Media is
growing faster than national
media.
Returns on Capital
Regional Films returns are Growing appetite for
higher than Bollywood good content, audience
films. seeking good stories.
Multiple revenue streams Cost structures of regional
including government movies fraction of Hindi
subsidies including digital film costs with similar box 34
platforms helping regional
office revenues.
growth
© TheStoryTellersFund 2019Bollywood & Corporate Studios –
Early Investors in Regional
Bollywood Actress - Priyanka Chopra Madhuri Dixit is focusing on
has produced 9 regional films in 5 Marathi Movies production
languages since 2016
John Abraham made his debut Viacom18 Motion Pictures is Zee Studios was amongst the Akshay Kumar and Ajay Devgan 35
as a Marathi Film producer in now also producing regional earliest to focus on regional have produced Marathi movies
2016 movies. language movies.
© TheStoryTellersFund 2019• Regional languages have strong cultures rooted • Organized funding has not been available for the • Growing regional discretionary income as regional GDP • Talent migration to Hindi
in great literature with many path breaking regional movie business resulting in low quality growth rates are faster than national GDP growth
storytellers like Tagore, Sarathchandra, Gokhale films and technically inferior story telling
• Increasing established appetite for local stories, context • Windowing and slate planning
and relevance
• Regional theatre is very vibrant with Gujarati, • Most producers have been interested in recovering with Hindi film releases
Marathi and Bengali leading the pack costs upfront with a result on compromise in • Growing multiplexes with better ATP realizations
distribution and marketing
• The audience is thirsting for the contextual and
• Speed of conversion of single
• Incentives from state governments
rich cultural stories • Single screen theatres make up a large portion of screens to digital
their revenues, though this is being replaced by • Low cost structures of production resulting in higher
• Regional movies are making a comeback digitization of screens and growing multiplexes returns on investments
• Piracy
supported by good stories, government
incentives, digitization and bigger distribution • Lack of distribution has made regional an
underexploit ancillary revenues like international
© TheStoryTellersFund 2019
• Regional films are growing at 40% pa versus and syndication, which regional TV has been able
Hindi films at 10%-11% pa to do successfully
36
STRENGTHS WEAKNESSES OPPORTUNITIES THREATSIndian stories for the world
Movie Budget Domestic Overseas Total Gross Return
USD Mn USD Mn USD Mn USD Mn %
The Darjeeling Limited 16 11 23 35 119
Slumdog Millionaire 15 141 236 377 2413
LION 12 47 56 103 758
Best Exotic Marigold Hotel 10 33 53 86 760
2nd Best Exotic Marigold Hotel 10 46 90 136 1260
The Lunchbox 3.3 4 18 22 565
The Namesake 3 2 20 23 667
Monsoon Wedding 1.2 14 21 35 2775
A growing market for Indian stories with an Indian and international cast that travel beyond borders
and find a global audience for much higher returns.
37
© TheStoryTellersFund 2019Regional Film Industry has all ingredients except
Organized Capital
• Growing regional discretionary income as regional GDP growth rates are
higher than national GDP growth correlates to higher M&E spend
• Increasing appetite for local stories, context and relevance
• Growing multiplex distribution with better realizations
• Incentives from state governments
• Low cost structures of production resulting in higher returns
38
40% of regional language films that go onto floors for production don’t see the light of the day.
© TheStoryTellersFund 2019The
Storytellers
Fund
39
*SEBI registered CAT-II Alternate Investment Fund – approval awaited © TheStoryTellersFund 2019Our Approach
Identification of High Quality Content
Production
Involvement from Script Stage
Work with the best talent All projects to be greenlit by Co-Production
in regional film industry on investment committee, not to Production Cost Control & on-site audit
quality projects in pre- exceed budget limits set per Promotion & Advertising
identified languages language Maximize Distribution, including in overseas
Distribution markets and on digital platforms
High Impact Marketing
40
© TheStoryTellersFund 2019OPPORTUNITY SUMMARY
Investment Opportunity Targeted Investors Expected Returns
§ India is the worlds fastest growing large § Investors invested in the India tier-II growth
economy and India’s media and entertainment story § Fund Tenure: 5 + 1 + 1 yrs
sector is growing at 11.6% CAGR, faster than
§ Investors seeking a diversified play in the fast § Hurdle rate 8%
India’s GDP growth rate.
growing Media and Entertainment industry in § IRR targeted at 15%
§ Within the M&E space, regional cinema is India
growing at over 40% p.a § Catch up
§ Financial investors seeking a alternate and
§ Opportunity to invest in India’s first regional § Carry 80:20 with super carry
potentially high growth product away from
Film Fund, SEBI registered CAT-II AIF with an regular index based funds
initial corpus of INR 150 cr; greenshoe option of
§ Bollywood Film financiers seeking to diversify
INR 100cr
into the potential low ticket but high return
§ The Fund will invest directly or through a hold co investments provided by films in other Indian
in the creation, distribution and monetization of languages
regional language content
41
© TheStoryTellersFund 2019FUND OVERVIEW
Investment Objective Fund’s Investment Strategy
Investing across the value chain …
• Investing in creation, distribution and monetization of Indian
regional language content with a focus on films ü Specialist unlisted firms or projects that are in regional
Film production and distribution (upto USD 15 mn);
§ Regional content includes content primarily from Indian
languages with a spoken audience size of > 30 mn with Hindi not ü Regional content for the digital regional ecosystem
players like Netflix, Amazon Prime etc (upto USD 3 mn);
being their mother tongue, from states with high GDP, growing
disposable income and need for entertainment content through
ü Firms doing International distribution of films (upto USD
theatres, mobile and digital in India and international markets. 2 mn);
§ Generate higher returns by adopting production, co-production Firms and projects for production & distribution of Indian
or P&A models as necessary with a complete control on the ü films in English for international markets (upto USD
10 mn);
creative process
ü Exploitation of IP rights of produced and acquired
§ Partial disbursement of profits annually and part reinvestment into content
new project cycle
ü The Fund will work in the 8 -9 pre-selected languages
§ Initial target language consideration set –
Bengali, Punjabi, using SPVs for each individual film product - The pre-
identified regional languages include Marathi, Bengali,
Malayalam, Marathi, Kannada, Gujarati, Tamil, Telugu and
Bhojpuri.
Punjabi, Malayalam, Kannada, Gujarati and Bhojpuri 42
© TheStoryTellersFund 2019INVESTMENT SUMMARY
Investment Size & Schedule Summary of Fees
Standard Fees with Super Carry
§ Minimum Investment Ticket size:
INR 1cr. § Management Fees: 2.5% p.a
§ Drawdown schedule § Set Up costs: upto 2% one time on actuals
§ 25% in Q4 2019 § Operating Fees: upto 1% p.a on actuals
§ 25% in Q2 2020 § Carry: 80:20 in favor of the investor
§ 25% in Q4 2020 § Super Carry: post 50% IRR delivery
20:80
§ 25% in Q2 2021
43
© TheStoryTellersFund 2019FUND STRUCTURE
Class A units – investors
Foreign /Offshore
Class B units – sponsors/managers
investors
Class C units – employees/managers
Sponsor -1
Domestic
Carry
Investors
Class
Elara Capital (Mauritius) Ltd A units
Ca
Ca rr
rry y
Trustee
Set up costs/ sponsor
contribution ELARA Trusteeship
Elara Storytellers ALTERNATIVE services
Advisory Pvt Ltd Management INVESTMENT FUND
Fees/Carry
Sponsor -2 &
Investment Manager THE STORYTELLERS FUND
Invest in debt
or equity or Investment
both returns
SPV 1 - SPV 2 -
44
Regional Gujarati Bhojpuri
Movie
Projects
SPV3 - SPV 4 –
Bengali Punjabi
© TheStoryTellersFund 2019The Advisory Board
Vijayendra Prasad, Writer Bahubali, Manikarnika, Bajrangi Bhaijan
Robin Bhatt, President Screenwriters Association of India, Filmfare award winner, writer of over 75 films
N. Chandra, Eminent award winning Bollywood director
Abhishek Jain, Director, award winning Gujarati films
Vijay Babu, Actor, Producer & Director, Malayalam Films
Sunil Boobna, Producer & Distributor, Bhojpuri Films
Sumeet Singh Manchanda, Producer & Distriibutor, Punjabi Films & Punjabi Music
Ravi Jhadav, Director, Marathi Films
Darshan Singh Grewal, Producer and distributor of blockbuster Punjabi movies & owner, Punjabi TV channels
Munish Sahni, Distributor, Punjabi Films
Kapil Agarwal, Joint MD, UFO Moviez
45
© TheStoryTellersFund 2019Key Team Members
Naveen Chandra Nitin Keni
A media industry professional with over 25 years of experience in Print, Radio, TV A film industry veteran with over 35 years of experience in Bollywood and
and Digital mediums in India and international markets. Naveen has worked on regional film industry in India. Was the producer of India’s first INR 100cr film
marquee media brands like Radio Mirchi, Times Now, ET Now, Bollywood TV channel (Gadar) in the early multiplex era and many of the biggest blockbusters in
Zoom and Movies Now. Winner of the Porter Prize for Strategy from the Institute of regional cinema like Sairat and Natsamrat . As founder and CEO of Zee Studios
Competitiveness for creating distinctive value in the International Business for Times and Zee TV he produced some of the biggest blockbusters of Indian cinema in
Network. His previous stints were as Head of Strategy & International Business at Hindi and regional languages. In his earlier stint, he has handled international
Times Network and earlier as the National Sales Director at Radio Mirchi. A festival and theatrical distribution at National Film Development Corporation
computer engineer with first division with distinction, he was amongst the top 1% of (NFDC). An engineer from VJTI, Nitin did his management from IIM Calcutta,
India’s most successful candidates in the AISSCE exam. He’s also a certified besides completing many courses on Films at Film & Television Institute of India
screenplay writer and a member of the Screenwriters Association of India. (FTII)
Hitesh Danak
A finance industry professional with over 28 years of experience in fund management in India across
institutional equities and portfolio management. His past experience includes firms like ICICI Securities, 46
UTI Securities, DSP Merrill Lynch, Citiciorp Securities, Prabhudas Liladhar, Apple AMC and Elara Capital
© TheStoryTellersFund 2019Non-Executive Directors
Raj Bhatt
§ Raj is a founder director of Elara Capital PLC. He has 30 years of senior management experience working in complex and multi-cultural organizations in seven
different locations spread over three continents. His last position has been working as Chief Financial Officer for a group of companies with operations in the
United Kingdom and South Africa. He has an outstanding track record in financial re-engineering, including restructuring, M&A and also in raising equity and
debt in international markets. He is a member of the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India. He is also a
corporate finance representative registered with the FSA, UK.
Ajay Pandey
§ Ajay has more than 25 years of experience in financial services industry. Prior to joining Elara Capital PLC he worked with Merrill Lynch International and the
Kotak Mahindra Group. He has been actively managing discretionary and non-discretionary private client portfolios in emerging markets. He has a postgraduate
degree in Management from Faculty of Management Studies, Vadodara and is a registered securities and derivative representative with Financial Services
Authority (FSA), UK.
47
© TheStoryTellersFund 2019Best In Class Partners
TAX Advisory – Deloitte
Legal Advisors – IC Universal Legal
Auditors – BIG 4
Valuation Advisory – TRC
Fund Accountant & Custodian – Edelweiss Custodial Services Ltd
Trustee – Beacon Trusteeship
48
© TheStoryTellersFund 2019”Indian Film Industry – a $10 Billion
Business trapped in a $2 Billion Body”
- Forbes
49
© TheStoryTellersFund 2019ACKNOWLEDGEMENTS
The data for the presentation has been drawn from various authorized sources, primary and secondary, some of which are acknowledged below:
EY FICCI Media and Entertainment Report 2018-2019
FICCI KPMG Media and Entertainment Report 2010-16
PWC Global Media and Entertainment Report 2012-17
BCG Google India Digital Report 2018
Deloitte Indywood report Sep 2016
EY – Film Industry in India- new horizons report
EY Indian Entertainment Down South
CII Big Picture summit report 2012
Bollywood reporter online
Indian Motion Pictures Association
Film Information and Total Cinema
Broadcast Audience Research Council (BARC)
Census of India, 2001
Government of India websites
CRISIL States of growth 2.0, Jan 2019
Investor presentations of various companies in media and entertainment space
50
Times of India, Economic Times, Bombay Times & Mumbai Mirror
Good old Wikipedia
© TheStoryTellersFund 2019Elara Story Tellers Advisory Private Limited
Indiabulls Financial Centre, Tower 3, 21st Floor, Senapati Bapat Marg, Elphinstone Road West,
Mumbai – 400013 India
TeL: +91 22 6164 8500
Email: storytellers@elaracapital.comYou can also read
