Nandish Domlur, CEO and founder of the Bangalore-based digital content production company, Paprikaas Technicolor, feels the time is not ripe for India to get into content production yet. it has a lot more to learn from international companies, says the chief of the company which services big animation and gaming giants like Nickelodeon and EA Sports. In a chat with DNA Money’s Pranav Nambiar, Domlur discusses the state of the animation industry and his future plans.

Will India emerge as an animation and gaming hub?

Most of the work being done out of India is post production work which does not include high-end work like scripting and storyboarding. The country has raw talent but competing against giants from the US and Europe would mean more structured arts courses which our country lacks. Also, capital access is an issue as it takes a minimum of $ 10 million to make a decent animation film. The good news is that many institutions are now introducing training programs for animation and international players are looking at India aggressively to outsource work. If you look at the animation ecosystem in the country, it’s expected to grow at 50% CAGR to $ 1,060 by 2012 led by segments like entertainment, education and gaming.

How does India fare in the scheme of things?

Currently, the market is dominated by Tata Elxsi, Crest, Toonz and ourselves. Roadside Romeo is hopefully a sign of things to come where Tata Elxsi delivered animation for India’s first purely-entertainment animated motion picture. Compared to the past, companies are getting longer term projects for say 3-5 years as compared to 6 months projects we previously received. On the other hand, there have been many small companies that have focused on content creation rather than following a service based model that are in deep trouble now. 

What do you think is the best business model for animation firms to follow?

I personally think that as a nascent industry, we have a lot to learn and cannot get into making films or games on our own as yet as we still do not have the expertise or the technology. It will be prudent to follow a service-based model and do post production work for big players to start off with, and learn the tricks of the trade before plunging into content creation. Remember, releasing a film or game includes not just production, but also marketing and distribution which Indians have no experience in doing.

Despite your presences in the space for over 7 years and having associations with the likes of DreamWorks, you have not ventured into content creation?

We want to take it slow by working with and learning from animation giants who have made marvels like Shrek. We are also tying up with the best of technology partners like Autodesk for our software needs and HP for our servers and design centre. Currently, we service clients primarily from North America. We are building the capabilities and are planning to hire another 300 people to our existing 700 strong staff. In three years time, I think we would be good enough to create and market our own Shrek.

Has the slowdown impacted the sector in India?

Yes there has been a slight impact with delays in projects coming in. But we have not seen any cancellations. We have toned down our growth projections from the current 120% to about 30% going ahead.

Can you give more details about you tie-up with DreamWorks Animation?

We are expanding our current facility in Whitefield and out of the three floors one will be totally dedicated to DreamWorks to set up a state of the art studio. Due to the non-disclosure agreement signed with the company, I can divulge more details of the project.

What are the other projects you are currently working on?

Internationally, the animation industry is a globally collaborative effort with different bits of the work being done in different parts of the world. Currently, we have 10 projects in our kitty that includes games, animation content and visual effects. We are also planning to set up another studio in Hyderabad or Pune which could entail a further investment of between $5-7 million.

Pranav Nambiar/ DNA-Daily News & Analysis Source: 3D Syndication