The Indian animation market is growing at a tremendous rate. Due to animation finding application in many more avenues, the market is likely to develop even further. It has proven useful to advertisers and educators alike. Cost advantage coupled with a potentially strong domestic market will continue to drive the animation market. The report begins with a market overview section that includes information on the current and forecasted market size and growth of the Indian animation industry divided into various categories. It also provides a segmentation of the revenues and the expected change over 2010 to 2015. Further, it explains the existing revenue model for the animation industry. The graph accompanying shows the division of revenue from overseas to that of the domestic market and application of animation platforms. The process flow chart for the animation industry has also been highlighted. Porter analysis helps towards understanding the dynamics in the animation sector. Drivers identified include growing demand from the film industry which will boost the demand for animation. This is complemented by details regarding the rise in the budget for animation movies as well as an increase in the average realization. Another reason for the tremendous growth in the animation sector is that Indian animators are considerably cheaper compared to that of their Korean or US counterparts. Other important factors are the growth in the gaming market in India which uses animation in an extensive way. Establishment of various training institutes imparting animation training will create a large pool of animators. Another important driver is tie-ups between various animation players and other companies which help the animators to supplement their revenues. Similarly, e-learning has many applications as far as the animation industry is concerned. As the e-learning industry is expected to grow at a steady rate so will the demand for applications using animation. Challenges identified are high set up cost of setting up a studio and manpower crunch. Trends identified include cartoon characters which are becoming a rage among children as they can easily connect with them. Many companies are opting for animations to advertise their products so as to break the clutter in the advertisement world. Towards leveraging from the animation boom, training institutes are trying to spread their pan India presence through company owned or franchise run institutes. Television channels targeted at kids have been rising in India. Furthermore, the international animation movie releases changes the revenue equation and is likely to be even more profitable in the future. The competition section begins with a bubble chart which provides the relative positions of the players based on their revenue, net profit and asset value or market capitalization. The major players in the market have been profiled which includes a financial summary for each of the players. Key ratios and key

1. Animation Industry – India
Animation Industry India
March 2012

2. Executive Summary
 India n animation market is expected to reach INR A by 20‐‐
 India occupies a miniscule market share of the global animation market
Market
 India’s market is growing at a steady rate of a1%
 Customized content forms the largest segment in animation industry
Customized content forms the largest segment in animation industry
 Drivers:  Challenges:
– Increasing domestic demand for animation – High set up cost
– Cost Advantage – Skilled Manpower Crunch
Drivers &
Di & – Growth of gaming market
Challenges – Increase in institutions providing
animation courses
– Animation in education
– Ti
Tie‐ups
 Cartoon Characters ‐A rage among kids
 Animation in advertising
Trends  Expansion of training institutes
 More kids channel in the market
More kids channel in the market
 International releases changes the split of revenues
Major Players in the Market
Competition Player 1
Pl 1 Player 2
Pl 2 Player 3
Pl 3 Player 4
Pl 4
ANIMATION MARKET IN INDIA 2012..PPT 2

3. •Market Overview
•Drivers & Challenges
•Trends
•Competition
•Future Outlook
•Appendix
pp
ANIMATION MARKET IN INDIA 2012..PPT 3

4. India is becoming a favored destination for all animation
related works among the major entertainment giants
Indian Animation Market – Overview Market Size and Growth
• Indian animation market is estimated to be INR B bn Type B Type D
in 20‐‐ and is expected to grow at a CAGR of b1% till Type A Type C
20‐‐ 60 K% T
• Sector is booming with overseas entertainment R
E t4
giants such as player 5, player 6 outsourcing cartoon 40 W r4
Q e4
characters and special effects to India w4 r3 t3
20 q
q4 e3
q3 w3
3 r2 t2
• Various home grown animation production/movies q2 w2 e2
q1 w1 e1 r1 t1
based on Indian mythological characters are also 0
gaining prominence 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
• Apart from movies and education, Indian animation
industry has the opportunity to migrate into Revenue Segmentation
R S t ti
industrial designing as well A B C
• Animation industry finds application in gaming, web
designing. creative content, television commercials, 20‐‐ 20‐‐
games for internet and mobile
c1 d2
• Lower cost of production and high value content
creation is the focus of the Indian animation industry d1
c2 c3
d3
ANIMATION MARKET IN INDIA 2012..PPT 4

5. Drivers & Challenges – Summary
Drivers
Di
Growing demand from film industry
Cost advantage
Challenges
Growth in gaming industry High set up cost
Increase in training institutes
I i t i i i tit t
providing animation courses Skilled Manpower Crunch
Tie‐ups
Animation in education
ANIMATION MARKET IN INDIA 2012..PPT 5

6. Trends – Summary
Cartoon characters‐a rage
among kids
International releases
changes the split of Animation in advertising
revenues
Key Trends
More Kids channels in the Expansion of training
market institutes
ANIMATION MARKET IN INDIA 2012..PPT 6

7. Public : Domestic Company – Company 1
Company Information Offices and Centres – India
Block ABC
Corporate Address
City XYZ
Tel No. 123456
Fax No. 1234567
Website http://www.abc123com/
Year of Incorporation 20‐‐
City A
Products and Services
Products and Services
Category Products/Services
Key People
Product 1 P1,p2,p3
Name
N Designation
D i ti
ABC abc
XYZ xyz
MNO mno
ANIMATION MARKET IN INDIA 2012..PPT 7

8. Public: Domestic Company – Company 1
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Particulars 20‐‐ 20‐‐ 20‐‐ 20‐‐
Revenue Net Income (20‐‐‐‐‐)
Profitability Ratios
6 x4 0.15 Operating Margin a1 a a2 a3 a4
x3
Net Margin b1 b b2 b3 b4
4 x1 x2 0.10
Profit Before Tax Margin c1 c c2 c3 c4
2 0.05 Return on Equity d1 d d2 d3 d4
Return on Capital Employed e1 e e2 e3 e4
0 0.00 Return on Working Capital f1 f f2 f3 f4
20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets g1 g g2 g3 g4
Financial Summary Return on Fixed Assets h1 h h2 h3 h4
Cost Ratios
• The company incurred a net profit of INR A mn in FY 20‐‐, as Operating costs (% of Sales) i1 i i2 i3 i4
compared to net profit of INR B mn in FY 20‐‐ Administration costs (% of
j1 j j2 j3 j4
• The company reported total Income of INR X mn in FY 20‐‐, Sales)
registering an increase of r % over FY 20‐‐
registering an increase of r % over FY 20 Interest costs (% of Sales)
Interest costs (% of Sales) k1 k k2 k3 k4
• The company earned an operating margin of d1 % in FY 20‐‐ an Liquidity Ratios
decrease of k % points over FY 20‐‐ Current Ratio l1 l l2 l3 l4
Cash Ratio m1 m m2 m3 m4
• The company reported debt to equity ratio of g in FY 20‐‐, an
Leverage Ratios
increase of r % over FY 20‐‐
Debt to Equity Ratio n1 n n2 n3 n4
Financial Summary Debt to Capital Ratio 01 o o2 o3 o4
Interest Coverage Ratio p1 p p2 p3 p4
Indicators Value (DD/MM/YYYY) Efficiency Ratios
Market Capitalization (INR) a Fixed Asset Turnover q1 q q2 q3 q4
Total Enterprise Value (INR) b Asset Turnover r1 r r2 r3 r4
EPS (INR)
EPS (INR) Current Asset Turnover
Current Asset Turnover s1 s s2 s3 s4
c
Working Capital Turnover t1 t t2 t3 t4
PE Ratio (Absolute) d
Capital Employed Turnover u1 u u2 u3 u4
Improved Decline
ANIMATION MARKET IN INDIA 2012..PPT 8

9. Public: Domestic Company – Company 1.
Key Business Segments Key Geographic Segments
Enamelled Wire and Strips
India
6,000 d 6,000 c1
c b1
4,000 a b 4,000 a1
2,000 2,000
0 0
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Business Highlights
Description News
Overview • It sells product A under the brand name of ‘abg’ & ‘def’
Production facilities • In India the company has k manufacturing hubs and j marketing offices
Shareholding pattern • Promoters of the company hold j % of the share while k % is held by general public
Clients • Clients are spread across ghj countries spanning across t continents
Investments • The company wants to invest INR K mn in a company through a joint venture in Country 2
producing product a and product b
producing product a and product b
• So far the company invested INR 0.C mn in company A in country A
ANIMATION MARKET IN INDIA 2012..PPT 9

10. Thank you for the attention
The Animation Industry report is a part of Research on India’s Media & Entertainment Industry
Series.
For more detailed information or customized research requirements please contact:
Gaurav Kumar
Phone: +91 33 4064 6214
E‐Mail: gaurav.kumar@netscribes.com
Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick
Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quick
insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on
About Netscribes
Netscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &
g g f g p y p p f
business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true
value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth
objectives.
Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,
Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on India
Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the
sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
ANIMATION MARKET IN INDIA 2012..PPT 10