Animation sector to reach $170 billion by 2013

Chennai :The animation industry in India has been termed the sunrise sector for nearly a decade but little has been done for it, said speakers at a conference on entertainment and media here Thursday.

“There is no separate government policy for the animation sector. We have been talking about the potential of this sector the past ten years and it is time to act now,” Artery Animation and FX CEO Yunus Bhukari said at Focus 2010 organised by Assocham.

Even though there are several kids channels in India, their consumption of locally produced animation programme is low and what they are willing to pay for the animation producers is also very low, he added.

Toonz Animation COO Hari Varma said: “The sector needs the industry status to get bank loans. It also needs tax breaks and incentives to grow. On the human resources side, there is a need for standardised curriculum for people to get trained.”

He said it is a feel good factor to hear about the industry numbers projected by consultants but nothing has changed over the years.

Urging the Indian animation companies to move up in the value chain, Ghanshyam Hemdev, managing director of Pyramid Infotainment, said Japan has created a brand for itself in global animation sector while the Indian animation has not gained much acceptance.

He said the Indian animation industry should integrate itself with the Indian film industry instead of being two distinct entities.

According to Assocham and Deloitte joint study released at the conference, the Indian animation industry is currently at $122 million and is expected to grow at compounded annual growth rate of 20 percent to reach $253 million by 2013.

The study stated that the industry will be shaped by both domestic demand of around 25 percent and 75 percent outsourcing.

The Indian animation industry is primarily catering to the US and Britain and its share in animation revenues was only 30 percent, the conference was told.

The global animation and gaming industry is growing at 12 percent per annum and is a $115 billion industry and is estimated to continue to its growth rate of 10 percent per annum to reach $170 billion by 2013, the study noted.

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