Animation Industry Review

01 Market Overview India is becoming a hub for outsourced animation

production services as well as developing a robust
domestic market

Market Overview

Overviews:

- Indian animation market, estimated at $494 million in 2008, expected to reach $ 1,192 mn
by 2012 Annual growth rate of 22% from 2008-12

- The sector is booming with overseas entertainment giants like Walt Disney, Imax and
Sony outsourcing cartoon characters and special effects to India

- Future outlook for animation sector is bright as Indian mythological characters gain
international appeal

Animation revenues split - India

29%
71%
Domestic Market Value
Outsourced Market Value
Market size & growth

Animation:

MUMBAI, INDIA: India's animation industry is expected to hit $1 billion by 2012 and the gaming
industry would touch $830 million then, aided by increased outsourcing and a growing
domestic market, a report released on Wednesday said.The Indian animation market, estimated
at $494 million in 2008, is seen growing at a compounded annual growth rate of 22 per cent till
2012, a report by National Association of Software and Service Companies (NASSCOM) and
Ernst & Young said."The industry will witness a dip in growth rates for two years before
becoming a billion dollar industry by 2012," Farokh Balsara, Partner & National Leader-Media &
Entertainment Practice with Ernst & Young, said at a media briefing, referring to the animation
industry.

1500

1100

Animation
700
Industry

300 Compound Annual

Growth Rate
(CAGR)

-100
2008 2009 2010 2011 2012
Market size & growth

Custom content development

Entertainment

Web & Multimedia

Educational
40% 30% 20% 10%
2008
2012
35% 32% 20% 13%
02 Drivers & Challenges

Drivers
Increasing domestic demand for animation
India- animation outsourcing hub
Increase in institutions providing animation education
Increase in character licensing business

Challenges
High set up production cost
Manpower shortage
Protection of intellectual property
Investments and realizations

Investments and realizations in animated movies expected to

increase while applications will be seen in other sectors
Increase in budgets and realizations for animation movies
Animation sector is poised to grow at a CAGR of 22% in India during 2008 12

With the growth of this industry, the production budgets and the average realizations for an
animation movie are expected to increase over this period

Kung Fu Panda (2008)

DreamWorks Animated hit has made about $230 million in 19 days of release worldwide.
The film cost about $130 million to make.

Animated Movie FINDING NEMO (2003) FAST FACTS

Directors: Andrew Stanton, Lee Unkrich
Producer: Graham Walters
Starring: Albert Brooks, Ellen DeGeneres, Willem Dafoe and Brad Garrett
Released: May 30, 2003
Budget: $94 million
Crew: 180 people
Run time: 100 minutes
Grossed over $864 million worldwide in theaters
Demand for pet clownfish tripled shortly after release
Across sectors

Use of animated content across sectors

Animated strips are being used to convey a medical related issue to the layman or
to disseminate important health issues to a large segment of people Medical

3D Geographical maps Web & Multimedia

Mobile gaming Mobile

E-learning contents Educational

3D walkthroughs Civil

Animated Advertisements Promotional

Interactive Product Demos for all the industries

Company Overview
Toonz Animation -Thiruvandarm based company

major provider of animation to top US and European producers, is South Asia's biggest and most
admired animation studio. Founded in 1999, Toonz's client list includes the biggest names in media and
entertainment: Marvel, Hallmark, Paramount, Disney, and Cartoon Network. The Animation Magazine has
heralded the company as one of the top ten multimedia studios in the world. Toonz prides itself in
constantly keeping abreast with technological advancements as well as quality standards. Toonz is the
largest Toon Boom Harmony installation in India. With its international production systems, 24/7
schedules, cutting edge communication infrastructure, cost effective service pricing and advantages of
time difference, Toonz has emerged as the preferred one stop studio for entertainment majors in America,
Europe and Asia.Toonz is also making significant inroads in to the domestic market with projects like the
musical version of Mahabharata, Hanuman 2 feature film etc.

Company Overview
UTV Toons -NA

UTV Toons is the UTV Group's Animation arm. It is the leading block in UTV's Interactive business includes Games and
Animated Content. Apart from original production and international co-productions, UTV Toons name is also synonymous
with India's oldest long format animation studio. The studio has a cumulative portfolio of more than 5000 minutes of
animation delivered including a half of that in 3D CGI. Over the years the company has had its work broadcast on almost
all major kids' broadcasters around the world including Disney Channel, Nickelodeon, Teletoons, France 5 and BBC.

Today the studio is one of the most matured from the sub continent having delivered 7 direct to DVD features and already
in pre-production for 3 theatrical feature films.
Quick Review
- Indian animation market, estimated at $494 million in 2008, expected to reach $ 1,192 mn
Market by 2012 Annual growth rate of 22% from 2008-12
- India is becoming a global outsourcing hub providing animation production services
- Students undergoing training in animation technology across India is studly increases

Drivers: Challenges
Drivers & Challenges

Increasing domestic demand for animation High-end set up and production cost
India emerging as animation outsourcing hub Manpower shortage
Increase in animation education institutions Protection of Intellectual property
Increase in character licensing business

- Increase in budgets and realizations for animation movies

Future Trends - Use of animated content across every sectors
- Indian animation movies are gaining international appeal especially the myth characters
- Educational content via animations

- Majority of the revenues for animation companies in India are from outsourced projects
Competition - Indian animation companies are moving up the value chain by developing original content
- Some of the prominent animation studios in India are Toonz Animation India , UTV Toonz ,
Nipuna Services Ltd, & more companies.
Proposal
Business Plan
Advertising I Technology
Mission is to become a prestigious
Advertising & Animation Company.

By providing innovative, quality and timely

services to our client we want to achieve the
most prestigious place in the industry.

Advertising & Technology

Proposal
Advertising & Animations

According to a 2009 report jointly published by the

Federation of Indian Chambers of Commerce and
Industry (FICCI) and KPMG, the media and
entertainment industry in India is likely to grow at ~13
% CAGR over 2009-13, touching US$ 20 billion by
2013.

For more details visit

http://info.shine.com/Industry-Information/Media-and-
Advertising/45.aspx

Advertising & Animation

 Steps
To bring immediate fund flow
in to the business I will bring
some of my technology
projects to the new start up
Planning to put SEO, SEM,
and technology team
according to the clients
requirements
This technology team will
also play major roll in digital
media promotions &
marketing activities like
internet based mass campion
planning internet based ad
planning to the clients, in
coming future huge amount
of advertising budget will be
spent on digital media
advertising
Step by Step
Recruiting of human resources according to the project
nature. I am very clear on not to deploy unnecessary
human resources.
We have to create effective demo to approach the known
clients
We initially go with our existing clients like thangamayil,
AMC, Aircel, Airtel to get quick recognitions by doing
small and medium agency activities.
Marketing Activities to target small and medium regional
level prospective customers.
Extensive pitching of demos of animations and demos in
commercial forums like international animation festivals
Membership with Nasscom & CII, because to update
knowledge of the market trend and project sourcing
Step by step approach
 Goal
The primary goal of the first
year is to build strong and
effective professional team
and strong vendor network.
1st year goals
Self sufficient to meet the running cost of
the business with in 6 to 8 months
To make our core human resource highly
skilled, up-dative and effective.
Not to incur loss
Quality Certification
Advertising & Animation
Goal Five-year goals

To become a national level Agency and well

know animation company.
50 core turnover company in 5 years.

Advertising & Animation

 Team Advertising & Animation Team
Creative Head 1 20000
Creative 2 30000

Print media Team

Minimum Salary over
head is 265000 Content writers 1 10000
Copy writers 2 20000
Market Salary over Graphic Designers 2 30000
head is 500000
3D Maya Team
Since we are start up
we can hire well Model & texturing 2 40000
experienced Rigging 1 20000
professionals in some Animations 2 40000
important areas rest of Lighting & rendering 2 40000
Adobe after effects 1 15000
the areas we can place
fresher's and 1or 2
years experienced
human sources

Advertising & Animations

 Team Marketing & Administrative Team

Marketing Head 1 25000

Marketing Ex 2 20000
Marketing and admin
Salary over head is Administrative
103000
HR 2 20000
Back office 2 20000
Accountant 1 10000
Office boy 2 8000

Marketing & Administrative

Proposal
Technology Industry
Poised to become a US$ 225 billion industry
by 2020, the Indian information technology
(IT) industry has played a key role in putting
India on the global map. The IT-BPO sector
has become one of the most significant
growth catalysts for the Indian economy.

For more details

http://www.ibef.org/industry/informationtechnol
ogy.aspx

Technology
Team Technology Team
Search Engine Optimization Team

Content writers 2 10000

SEO Specialist 2 30000
Link Builders 2 20000

Mobile Application Team

Windows Developer 2 40000

Iphone Developers 2 40000
Android Developers 2 40000

Technology Team
Proposal Discussion session

Discussion session on the presentation content

and profit sharing area

Advertising & Technology

Proposal

Tell me the date now.

Advertising & Technology