French Thomson expands in Indian animation business

PARIS, Feb 13 (Reuters) France's Thomson said on Tuesday that its Technicolor Content Services business had made a strategic investment in Paprikaas Animation Studios, an animation and game-content provider in Bangalore, to bolster its position in the fast-growing Indian entertainment industry.

Details of the transaction were not disclosed but a group's spokeswoman said it involved the purchase of a controlling stake in Paprikaas.

A year-ago, Thomson Chief Executive Frank Dangeard told the Reuters Global Technology, Media and Telecoms Summit that the company planned to locate more of its business, notably film post-production and DVD manufacturing, in India in coming years to cut costs and to serve local clients.

Paprikaas offers creative, technical and production capabilities to design and produce computer animation for feature films, television programming, commercials, and video games, with a strong focus on 3D content.

From a developer's perspective, India's animation industry was approximately worth 4 million in 2006 and is expected to grow at an annual rate of 25 percent, nearly three times the global market rate, the statement said.

The Indian gaming industry was worth .7 million in 2006 and is expected to grow more strongly than the animation market, it added.

REUTERS PKS RN1825