Home video major Ultra is in talks with the Reliance Anil Dhirubhai Ambani Group (R-ADAG) for a strategic equity partnership in the company.
However, he added that the talks were at a nascent stage. Agarwal said that the negotiations with the strategic players were aimed at raising around Rs 100 crore through sale of around 25 per cent equity. If the deal happens, it will value the company at around Rs 500 crore.
There has been a sudden rush of corporate biggies wanting to enter the home video industry after Delhi-based optical storage media maker Moser Baer entered the business last December with DVD and VCD prices at Rs 34 and Rs 28 respectively. Harish Thawani-promoted Nimbus Communications too has announced its plan to join the fray.
According to PricewaterhouseCoopers (PwC), the home video market is expected to grow at a compound annual growth rate (CAGR) of 31 per cent to Rs 2,500 crore by 2011. An additional boost will come from a growing domestic retail sector.
(Source: Business Standard)
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