FICCI-KPMG-Report-13-FRAMES

The power of a billion: Realizing the Indian dream
147
Outlook for the year
The year 2012 was a mixed year for the Indian animation
and VFX industry. While some players witnessed healthy
growth on the back of increased workflow as the industry
grew globally, others struggled to keep the momentum
going as the squeeze on pricing and margins increased.
The performance of the animation industry was more flat,
whereas VFX and Post-production grew in line with the
overall performance of the film and TV industry.
Domestic animated feature film releases over the past
year (‘Chhota Bheem’, ‘Arjun-The Warrior Prince’, ‘Delhi
Safari’, ‘Krishna aur Kans’ and ‘Sons of Ram’) did not meet
expectations and this has had a detrimental effect on
producer interest in the segment.
On the VFX and post-production front, 2D-3D conversion
activity increased and the quality of VFX in movies and TV
improved significantly. Overseas players now consider India
a viable source for content and quality work at affordable
pricing.
(Amounts in INR billion)
Segment 2008 2009 2010 2011 2012 CAGR (2008-12) Growth in 2012
Animation services 4.8 5.5 6.2 7.1 7.6 12.17% 7.0%
Animation production 3.6 3.7 3.9 4.2 4.5 5.7% 7.1%
VFX 2.3 3.1 4.5 6.2 7.7 35.3% 24.2%
Post-production 6.8 7.8 9.1 13.5 15.5 22.9% 14.8%
Total 17.5 20.1 23.7 31.0 35.3 19.2% 13.9%
Source: KPMG in India analysis
Size of Animation, VFX and Post production
industry in India
Source: KPMG in India analysis
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