AVGC – Invest Telangana

DEPARTMENT OF INDUSTRIES AND COMMERCE,
GOVERNMENT OF TELANGANA

About Telangana
About Invest Telangana

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Why Telangana

Why one should invest in Telangana?

Telangana is the fastest growing State in India recording 14.9% Gross State Domestic Product (GSDP) growth in 2018-19. Our State Industrial policy TS i-PASS is rated amongst the best in the country.

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AVGC

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Grade –A space as part of IMAGE Tower in Sq.Ft

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Companies in the state working in the VFX

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Employees working in the AVGC space

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Largest Producer of Motion Pictures (Tollywood)

Amarnath Reddy A
Chief Relations Officer,
ITE&C

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Industry outlook, Opportunity in Telangana

India

The Indian M&E industry is projected to grow at a pace of 14% over the period 2016-2021, outshining the global average of 4.2% CAGR, with advertising revenue expected to increase at a compounded Annual Growth Rate (CAGR) of 15.3% during the same period.
Television is expected to grow at a CAGR of 14.7% over the next five years as both advertisement and subscription revenues are projected to exhibit strong growth at 14.4% and 14.8% respectively.
Focus on the ‘kids’ genre’ is growing with a rise in dedicated TV channels for them. As the advertising Industry grows, the share of animation driven advertisements is also expected to grow.
Surge in 3D/HD animated movies in theatres and use of animation and VFX in TV advertising and gaming. Growing outsourcing of VFX and gaming to India is due to cost effectiveness of Indian players.
Gaming industry in India reached Rs 62 billion (US$ 890 million) in FY19 from Rs 24 billion (US$ 343.40 million) in FY18, and is expected to reach US$ 3.58 billion by 2024.
Animation and VFX industry in India reached Rs 87.7 billion (US$ 1.25 billion) in FY19. It is expected to grow at a CAGR of 16 per cent till FY24 and reach Rs 184 billion (US$ 2.63 billion).
Digitalisation has played a major role in the growth of Indian film industry. The Indian film industry is expected to grow at a rate of 11.9 per cent by 2020.
Total subscriber base for Indian television industry was expected to increase to 195 million by 2019 from 183 million in 2017. Between 30-35 million OTT subscribers are expected by 2021.

Telangana

Telangana is a State with a legacy of rich cultural heritage & tourism. It has evolved as a Cultural & Tourism capital right from Art markets, Paintings to Dance, Music, Sculpture, Cinemas, Comics etc. and is now emerging as a leader for eco-tourism and entertainment. It has evolved its own inherent skill and it is poised to impact the global entertainment scenario through the Indian film festival. The holistic development of the State right from Agriculture to Manufacturing, Manufacturing to IT, ITES to Media & Entertainment and to other contemporary development symbolizes true convergence of Technology, Art, Science and Culture.

“HYDERABAD HAS EMERGED AS ONE OF THE FOREMOST CENTRES OF CULTURE IN INDIA, WITH ARTISTS MIGRATING TO THE CITY FROM THE REST OF THE INDIAN SUBCONTINENT.”

To boost the maturing AVGC ecosystem in Telangana, the state government is creating a A fully equipped state of the art tower with 1.6 Million sft of Grade – A space. An investment of Rs. 1,200 Crores for facilitating over 30,000 workforces is going into the same.
Telangana has 150 companies working in the VFX space providing direct employment to 30,000 people.
The VFX and animation work for some of the biggest movies like Life of Pi, Bahubali, Magadheera and Arundhati was done in Hyderabad.
Ramoji Film City in Hyderabad has been involved in the making of Hollywood motion pictures by providing equipment, crew, sets and post-production facilities.
Tollywood (Telugu Film Industry)is India’s second largest producer of motion pictures.

Major Investments

Government Support

Foreign Direct Investments

Up to 100% FDI allowed in Teleports, DTH, Multi-System Operator, cable networks in DAS areas, mobile TV, Headend-in-the-Sky Broadcasting Services 100% FDI is allowed in Publishing/ Printing of scientific and Technical magazines/ Speciality journals/ Periodicals under the government route. For further details, please refer FDI Policy

Infrastructure

All new AVGC parks and development areas shall be provided
with the required infrastructure of the highest standards. Telangana State Industrial
Infrastructure Corporation (TSIIC) will become the nodal agency to create this infrastructure
and manage the land bank. While government agencies like TSIIC will be encouraged to
develop infrastructure and set up designated AVGC clusters, reputed private developers, with
proven track record, will also be welcomed to develop dedicated clusters in an appropriate PPP
mode.

All new AVCGI parks and development areas shall be provided
with the required infrastructure of the highest standards. Telangana State Industrial
Infrastructure Corporation (TSIIC) will become the nodal agency to create this infrastructure
and manage the land bank. While government agencies like TSIIC will be encouraged to
develop infrastructure and set up designated AVCGI clusters, reputed private developers, with
proven track record, will also be welcomed to develop dedicated clusters in an appropriate PPP
modeAll new AVCGI parks and development areas shall be provided
with the required infrastructure of the highest standards. Telangana State Industrial
Infrastructure Corporation (TSIIC) will become the nodal agency to create this infrastructure
and manage the land bank. While government agencies like TSIIC will be encouraged to
develop infrastructure and set up designated AVCGI clusters, reputed private developers, with
proven track record, will also be welcomed to develop dedicated clusters in an appropriate PPP
mode- All new AVCGI parks and development areas shall be provided
with the required infrastructure of the highest standards. Telangana State Industrial
Infrastructure Corporation (TSIIC) will become the nodal agency to create this infrastructure
and manage the land bank. While government agencies like TSIIC will be encouraged to
develop infrastructure and set up designated AVCGI clusters, reputed private developers, with
proven track record, will also be welcomed to develop dedicated clusters in an appropriate PPP
mode- All new AVCGI parks and development areas shall be provided
with the required infrastructure of the highest standards. Telangana State Industrial
Infrastructure Corporation (TSIIC) will become the nodal agency to create this infrastructure
and manage the land bank. While government agencies like TSIIC will be encouraged to
develop infrastructure and set up designated AVCGI clusters, reputed private developers, with
proven track record, will also be welcomed to develop dedicated clusters in an appropriate PPP
mode

Setting up IMAGE Policy

Telangana Animation and Gaming (IMAGE) City will be set up
in RR District Hyderabad in an appropriate extent of land by the Government, through
Telangana State Industrial Infrastructure Corporation (TSIIC). The Telangana Animation and
Gaming IMAGE City will be a world class facility that will provide an ideal environment for
businesses in Animation, Visual effects, Gaming & Comics Industry

Allotment of government land

Eligible AVGC companies shall be allotted government
land in Hyderabad and surrounding areas, subject to fulfilment of terms and conditions on
employment, investment, etc.

Setting up of training and skilling academies

Government of Telangana in association with
stakeholders shall set up a world-class and first of its kind in the country Animation, Visual
effects, Gaming & Comics Academy to impart requisite communication skills, artistic skills
and domain knowledge to the students. This Academy will help create the talent pool that is
needed to incubate new ideas and foster entrepreneurships in the Telangana Animation
Industry. Further, the government shall also promote AVGC courses and expert talks in
collaboration with the industry

Training and placement through TASK

Government shall ensure that through TASK, the requisite talent pool for Animation & Gaming industry (industry ready), is available through imparting hands on experience in communication skills and domain knowledge and through provision of campus placements

Dedicated incubator for AVCGI

In its effort to further enhance the start-up ecosystem in
the state, the Government of Telangana in association with STPI has created an Incubation
Center dedicated for AVGC start-ups and early stage companies. In addition, Government of
Telangana shall create a suitable Venture Capital Funding mechanism in association with
stakeholders to extend appropriate seed capital assistance to first generation entrepreneurs,
startups, Small & Medium Enterprises engaged in the Animation, Visual effects, Gaming &
Comics sector.

Promote local content through reservation of air time

Government of Telangana shall
coordinate with the Government of India to implement the reservation of at least 5 – 15% of
airtime on channels (both foreign and domestic) to promote locally created content to provide
level playing field for domestic content development and foster competition between domestic
players, foreign companies that set up base in Telangana as well as startups. This will also
ensure that quality content goes on air.

Fiscal Incentives

25% Capital investment subsidy limited to Rs.25 Lakhs for fresh investments made post
declaration of the said policy. This is a one-time subsidy for an Investment above Rs.5 Crore
and create new employment of 50 employees and above.
Reimbursement of production cost of animation films, cartoon series and games, up to 20%
(with specific caps), if 80% of the production costs for the same were incurred in Telangana.
Entertainment Tax Exemption: Full fledge Animation VFX Theater film produced and released
in Telangana will be entitled for Entertainment Tax exemption.
Reimbursement of Internet Bandwidth charges upto Rs.3 Lakhs per annum for a period of three,
as compared to Rs. 2 Lakhs mentioned in the above section.
Additionally, for SC/ST and women entrepreneurs, additional fiscal benefits, over and above
the common incentives, are provided.
AVGC companies shall be exempted from statutory power cuts and shall be encouraged to
utilize renewable energy.

INDIA JOY

India Joy is a congregation of various flagship events related to the Media & Entertainment industry and the counterpart. A weeklong Celebration of Indian Animation, VFX, Gaming, e-Sports, and Film content on a global level. Indiajoy is not just a B2B event. It brings together all the stakeholders of the Industry such as Governments, Corporates, Working professionals and Students, and caters Optimal opportunities and Entertainment. It’s a one-stop destination to understand Media & Entertainment ecosystem in India.The amazing two-day event will feature panels, discussions and networking with an array of distinguished animation and visual effects professionals.

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Days

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Events

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Countries

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International Delegation

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Visitors

Venue

Investable Projects

e-Sports

VFX and Post Production

Animation Services

Artificial Intelligence

Game Development

Augmented & Virtual Reality

Other Enabling Factors

Reasonable cost & abundant human resource.
Existence of Animation, Visual effects, Comics & Gaming industry in the State: International players like Walt Disney, Sony Entertainment, Microsoft, Electronic Arts etc. and domestic players like Tata Elxsi, Purple Talk, Prime Focus, Rythm & Hues, Prasad EFX, DQ entertainment, 7Seas Entertainment, Green Gold, Makuta, Fire Fly, etc. are present in the State.
Low cost of living & transportation and world class social amenities. E.g: Ramoji Film City in Hyderabad has been involved in the making of Hollywood motion pictures by providing equipment, crew, sets and post-production facilities.
Proven experience and record of IT industry in the state – Major opportunity Bollywood and Tollywood- Pre and Post production works
Experience human resources in Multi-platform development and design.
Fast growing telecom industry and improvised mobile connectivity.

Partner Organizations

Eco system partners:

STPI, CII, MESE, MEAI, SEPC, FICCI

Nature of the Interation:

Conduct events, Collaboratively participate in Global Events, Facilitate business and networking platforms, Gathering Survey information and device policies.

TVAGA (Telangana Visual effects, Animation, Gaming Association) is an active industry body that works actively with the Government for promoting the ecosystem.

Testimonials

Allu Aravind at India Joy Event 2019 Hyderabad

Hyderabad was one of the first cities to start animation along with Mumbai, Chennai and Thiruvananthapuram a few years ago. And now it has a policy put in place by the government. It is definitely the most progressive policy in India as it has given direction on how industry could be looked into for growth. The setting up of IMAGE Tower will not only help Indian studios but even foreign ones to come together and create unique content. TASK is a phenomenal initiative and they are looking at AVGC as a champion sector to develop it.

Aashish Kulkarni

Founder, Punnaryug Artvision

It was great to see first-hand the work the teams located at Digital Domain (Hyderabad) is doing. It is very inspiring to see such talent in the space being well supported by the Government.

David Taritero

Walt Disney