Indian Animation Industry: Moving Up the Value Chain?


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Case Details:

Case Code : BENV021
Case Length : 13 Pages
Period : 1990-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : -
Industry : Information Technology; Animation
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Ten years ago, it [the Indian animation industry] barely existed and now it's the hot destination for all producers of animation. Clearly, it is an industry that is in India to stay."1

- Ed Borgerding, chief executive officer, First Serve Toonz, in 2006

"It is no longer a sunrise industry. It is an industry which is actually beginning to take wing in different directions. It understands the elements of the value chain."2

- Bhiren Ghose, CEO, Kahani World Inc., in 2008.

Introduction

In November 2008, NASSCOM3 announced that the Indian animation industry was poised for significant growth in the coming years. The industry was expected to record US$1163 million by 2012, as against the projected US$460 million by the end of 2008, reporting a CAGR of 27 percent, according to a report jointly prepared by NASSCOM and Ernst & Young4.5 (Refer to Figure I for a break-up of the animation market in India). There were several movies slated for release in 2009 including big budget movies like "Sultan-The Warrior", "Coochie Coochie Hota Hai"and a few more.

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1] "Animation: Indian Animation Studios Make Headway", www.onscreenasia.com, March 1, 2006.

2] "The Animation and Gaming Industry in India - Coming into its Own,"http://blog.nasscom.in, November 2008.

3] NASSCOM (acronym for National Association of Software and Service Companies) is the premier trade body and the chamber of commerce of the IT industry in India.

4] Ernst & Young is one of the world's largest professional services firm with global headquarters in London, UK.

5] "Animation Industry to Record $1,163 mn by 2012,"http://economictimes.indiatimes.com, November 6, 2008.

  

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