Sahara Group has taken a 10.59 per cent stake in the listed Mumbai-based production company K Sera Sera for Rs 8.28 crore.
Sahara is also investing Rs 26.72 crore in joint production of 10 movies with K Sera Sera, taking the total deal to Rs 35 crore. The production house is also producing two television shows for Sahara TV, the Hindi general entertainment channel, but this is outside the deal.
“Sahara has picked up 10.59 per cent stake in the company. The promoter group’s and directors’ holding is 65 per cent while the balance is with the public,” said K Sera Sera managing director Parag Sanghvi.
K Sera Sera’s net profit is expected to be around Rs 5 crore on a turnover of close to Rs 25 crore for the year 2003-04, sources said. The company will announce the results on Tuesday. Movies have contributed to most of the revenues while the television production business accounts for 5-10 per cent of the revenues. But with the company planning more TV serials, this segment is expected to contribute 20-25 per cent of the turnover.
K Sera Sera released three films last year. It plans to release eight movies this fiscal. “We are scaling up our movie production business. We are also planning to get more into TV serials this year,” said Mr Sanghvi. According to the agreement, it has to produce the 10 movies for Sahara before it picks up any other film venture.
The company has a line-up of five TV shows between August-September. “These shows range from Rs 3.5 lakh to Rs 4.5 lakh per episode. Two of these are weekly shows,” said Mr Sanghvi.
For the 10 movies, it has tied up with Ram Gopal Varma-promoted Varma Corporation. For two television shows to be aired on Sony TV and Zee TV, the company has tied up with Ravi Rai’s production house.