Interworld Digital Ltd Management Discussions

INTRODUCTION:

Interworld Digital Limited is in the business as entertainment company and to organize, equip, arrange, write, manage, control, run, exhibit, distribute, direct, provide and to produce, promote, project, participate, manipulate, treat, process, prepare, alter, develop, expose, edit, make, remake, display, print, reprint, convert, finish, buy, sell, run, import, export, and to act as syndication, broker, agent, co-ordinator, distributor, organiser, proprietor, movie makers, copyright owners, video right owners, audio right owners, theatre owners, dubbing right owners, cinema studio owners, dance, music and provide complete technical. To own, undertake, carry on and operate directly or indirectly in India and abroad the business of editors, publishing producing, trading, commercial and industrial houses or for public in general in the interest of public relations which may include any all subject of common interest and to carry on the business of multilevel marketing , network marketing , digital marketing of products/services/consultancy and other forms of marketing and electronic services or devices including applications relating to media and entertainment..

MEDIA & ENTERTAINMENT INDUSTRY IN THE INDIAN ECONOMY:

India s media and entertainment (M&E) industry is a booming sector within the Indian economy, projected to reach INR 3.1 trillion by 2027, driven by rapid digitalization and strong consumer spending. While digital media now dominates, areas like online gaming, animation, and VFX are high-growth segments. The industry s growth is enabled by widespread internet and smart phone adoption, rising incomes, and supportive government policies. The entertainment industry plays a significant role in the Indian economy, contributing to both GDP and employment. As one of the fastest-growing sectors, it encompasses film, television, music, digital media, and live entertainment. The industry has witnessed rapid expansion, driven by the rise of digital platforms, increased internet penetration, and a growing middle class with disposable income. The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making significant strides. The increasing availability of fast and cheap internet, rising incomes, and increasing purchases of consumer durables have significantly aided the industry. India s media and entertainment industry are unique as compared to other markets. The industry is well known for its extremely high volumes and rising Average Revenue Per User (ARPU). This significantly aided the country s industry and made India leading in terms of digital adoption and provided companies with uninterrupted rich data to understand their customers better. India has also experienced growing opportunities in the VFX sector as the focus shifted globally to India as a preferred content creator. India s media and entertainment (M&E) industry is experiencing robust growth, poised for an 8.3% compound annual growth rate (CAGR) to reach approximately 3.65 trillion by 2028, significantly outpacing the global average. This surge is driven by factors like improving internet penetration, the increasing popularity of digital platforms, government support, and a young, tech-savvy population. Digital advertising and OTT platforms are leading the expansion, with online gaming and esports showing the highest growth rate in the sector. Proving its resilience to the world, Indian M&E industry is on the cusp of a strong phase of growth, backed by rising consumer demand and improving advertising revenue. According to a FICCI-EY report, the advertising to GDP ratio is expected to reach 0.4% by 2025 from 0.38% in 2019. N the Union budget of FY26 the Ministry of Information and broadcasting received Rs. 4,358 crore (US$ 515.5 million). The Indian entertainment sector could unlock an estimated Rs. 50,724 crore (US$ 6 billion) in tilizatio value by FY30, according to a recent industry report. This growth potential is attributed to international collaboration, technology adoption, and strategic changes in content creation. Indian advertising revenues is projected to grow at a CAGR of 9.4% to reach Rs. 1,58,000 crore (US$ 19.2 billion) in FY28, which is 1.4x the global average of 6.7%. OTT platform revenues in India are projected to grow at a remarkable CAGR of 14.9%, the highest among the top 15 countries, to reach Rs. 35,061 crore (US$ 4.25 billion) by FY28. In 2025, the Indian cinema industry is projected to generate approximately US$5.01 billion in revenue, with continued growth expected to reach US$6.29 billion by 2030, showing a CAGR of 4.65%. While there has been a 27% growth in the all-India box office in the first five months of 2025, a sense of nervousness persists due to challenges like losing the elite audience and a significant gap in affordable cinema infrastructure in smaller towns. The industry is focusing on mid-budget films with innovative storytelling, leveraging technology and

creator-first ecosystem and cement India global film production hub.

MARKETING INITIATIVES:

Company engage audience.

MARKET DYNAMICS:

In the Union value by techno

at a CAGR of 10.3%.

India

Media companies are projected to that account for 55% of the media industry

According - India 3.03 billion (Rs. 3,65,000 crore) by FY28. -the-According to Media Partners Asia

The Indian media and entertainment sector posted a robust 19.9% growth in 2022 and crossed the Rs. 2 trillion (US$ 24 billion) mark in annual revenue for the first time led by a sharp jump in the digital advertising mop-up. In 2024, the projected revenue in the Digital Media market in India is expected to reach US$ 10.07 billion. It is expected to contribute 38% to the overall advertising industry in India, on par with television. The OTT segment is likely to grow at a remarkable CAGR of 14.1% to reach Rs. 21,032 crore (US$ 2.55 billion) in 2026. Subscription services, which accounted for 90.5% of revenue in 2021, are projected to account for 95% of revenue by 2026.

GOVERNMENT INITIATIVES:

The Telecom Regulatory Authority of India (TRAI) is set to approach the Ministry of Information and Broadcasting, Government of India, with a request to Fastrack the recommendations on broadcasting, in an attempt to boost reforms in the broadcasting sector. The Government of India has agreed to set up National Centre of Excellence for Animation, Gaming, Visual Effects and Comics industry in Mumbai. The Indian and Canadian Government have signed an audio-visual co-production deal to enable producers from both the countries exchange and explore their culture and creativity, respectively. To ease filming in railways, the Film Facilitation Office (FFO) set up in the National Film Development Corporation (NFDC) collaborated with the Ministry of Railways to develop an integrated single window filming mechanism to streamline the permission process for filming across railway premises. Government of India has taken various initiatives like 100 per cent FDI allowed in teleports, multi-system operators, mobile TV, cable, and direct-to-home (DTH) satellite platforms; 100 per cent FDI allowed in publishing/printing of scientific and technical magazines/ speciality journals/ Periodicals under the government route and granting industry status to the film industry for easy access to institutional finance, have provided a boost to the sector. The Indian entertainment industry has seen significant growth over the years, fueled by various government initiatives aimed at promoting and supporting the sector. Here are some key initiatives: (d) National Film Heritage Mission (NFHM) Launched by the Ministry of Information and Broadcasting, the NFHM aims to preserve and restore India s rich cinematic heritage. It focuses on digitizing and restoring old films to ensure they are preserved for future generations. (e) Single Window Clearance for Film Shooting To make India a more attractive destination for filmmakers, the government has introduced a single-window clearance system for film shooting. This initiative simplifies the process of obtaining permissions, making it easier for domestic and international filmmakers to shoot in India. (f) Film Facilitation Office (FFO) The FFO, established under the Ministry of Information and Broadcasting, serves as a nodal agency to facilitate film shooting in India. It assists filmmakers with necessary approvals and clearances, thus promoting India as a filming destination.

4. Ease of Doing Business in Media and Entertainment

The government has taken several steps to improve the ease of doing business in the media and entertainment sector, including reducing bureaucratic hurdles, simplifying tax procedures, and promoting foreign direct investment (FDI).

5. Incentives for Animation, Visual Effects, Gaming, and Comics (AVGC) Sector

Recognizing the potential of the AVGC sector, the government has introduced various incentives, including tax breaks and subsidies, to promote growth in this area. State governments like Karnataka and Maharashtra have also launched dedicated AVGC policies. (g) International Film Festival of India (IFFI) Organized annually by the Ministry of Information and Broadcasting, the IFFI in Goa showcases Indian cinema to an international audience. It serves as a platform for cultural exchange and promotes India s soft power globally. (h) Cinematograph (Amendment) Bill The government has proposed amendments to the Cinematograph Act to combat film piracy and ensure stricter enforcement of intellectual property rights in the film industry. This initiative aims to protect the rights of content creators and producers.

(i) Promotion of Regional Cinema

To support regional cinema, the government provides financial assistance and subsidies to filmmakers producing films in regional languages. Various state governments also have their own policies to promote local film industries. (j) Co-Production Treaties India has signed co-production treaties with several countries to encourage collaboration in film production. These treaties allow filmmakers to pool resources and talent from different countries, thereby expanding the reach of Indian cinema. (k) Digital India Initiative Under the Digital India initiative, the government is promoting the use of digital technologies in the entertainment industry. This includes support for digital platforms, online content creation, and the development of digital infrastructure, which has transformed content consumption patterns in India. These initiatives reflect the government s commitment to fostering growth and innovation in the Indian entertainment industry, making it a key contributor to the country s economy and global cultural presence.

SWOT ANALYSIS: Strengths

1. Diverse Content Offering: o India s entertainment industry produces content in multiple languages, catering to a diverse and vast audience, both domestically and internationally.

2. Large Domestic Market: o With over 1.4 billion people, India has a massive and growing consumer base with increasing disposable income, particularly in urban and semi-urban areas.

3. Strong Film Industry: o Bollywood is the largest film industry in the world by output, along with thriving regional cinema industries, contributing significantly to the economy.

4. Growing Digital Penetration: o Rapid adoption of smart phones and internet services has fueled the growth of OTT platforms and digital content consumption.

5. Global Reach: o Indian films, music, and digital content have a significant global following, especially among the Indian diaspora, enhancing the industry s international footprint.

Weaknesses

1. High Dependence on Box Office Revenue: o Despite the rise of OTT platforms, a large portion of revenue still comes from box office sales, making the industry vulnerable to external shocks like pandemics.

2. Piracy: o Widespread piracy continues to undermine revenue potential, particularly in the film and music industries.

3. Fragmented Industry Structure: o The industry is highly fragmented with numerous small players, leading to inefficiencies and challenges in scaling operations.

4. Limited Infrastructure: o Inadequate infrastructure, such as a limited number of high-quality cinema screens, affects the reach and profitability of theatrical releases.

5. Regulatory Challenges: o The industry faces complex and sometimes inconsistent regulatory environments, especially in content censorship and intellectual property rights.

Opportunities

1. Expansion of OTT Platforms: o The increasing popularity of OTT platforms presents opportunities for content creators to reach wider and more diverse audiences.

2. Regional Content Growth: o The demand for regional language content is rising, providing new avenues for growth, particularly in less saturated markets.

3. Technological Advancements: o Innovations in AI, VR, AR, and data analytics can lead to more personalized and immersive content experiences, opening new revenue streams.

4. Global Collaborations: o Co-production treaties and partnerships with international studios offer opportunities for Indian content to reach global audiences and for knowledge exchange.

5. Government Support: o Continued government initiatives, such as incentives for the AVGC sector and simplified regulations, can boost industry growth.

Threats

1. Content Saturation: o The rapid production of content across platforms can lead to market saturation, making it difficult for individual projects to stand out.

2. Changing Consumer Preferences: o Shifts in consumer behavior, especially among younger audiences who prefer short-form or interactive content, may challenge traditional content formats.

3. Economic Uncertainty: o Economic dow o nturns or instability can affect consumer spending on entertainment, impacting overall industry revenue.

4. Competition from Global Players: o International OTT platforms and film studios are increasingly entering the Indian market, intensifying competition for local players.

5. Regulatory and Censorship Risks: o Strict censorship laws and changing regulations can restrict creative freedom and pose challenges to content distribution.

FUTURE OUTLOOK :

The Indian Entertainment industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate. This can be majorly credited to rising incomes, increasing internet penetration and a growing push toward digital adoption. The future of the Indian entertainment industry is poised for significant growth, driven by digital transformation, regional content expansion, and technological advancements. The surge in demand for Over-The-Top (OTT) platforms will continue, with increased investment in original and regional content. The industry is also expected to see a boom in the Animation, Visual Effects, Gaming, and Comics (AVGC) sector, positioning India as a global hub for these services. Cinema will remain relevant, with hybrid release models becoming more common. Technological innovations like AI, VR, and AR will create more personalized and immersive entertainment experiences. The globalization of Indian content, supported by international collaborations, will expand the industry s reach. Government initiatives, including ease of doing business and support for the AVGC sector, will further boost growth. However, challenges such as content saturation and the need for new monetization models will require the industry to continually innovate. Overall, the Indian entertainment industry is on a dynamic path, ready to capitalize on emerging opportunities and evolving consumer preferences. AI and machine learning are being integrated into various aspects of filmmaking, from scriptwriting to marketing. These technologies offer valuable insights and efficiencies, enhancing the creative process and audience engagement. The future of the Indian film industry is bright and filled with potential for innovation and growth. While challenges remain, the industry s resilience and adaptability will continue to drive its success. By embracing new technologies, diverse narratives, and global collaborations, Indian cinema is poised to reach new heights and captivate audiences worldwide.

INTERNAL CONTROL:

The Company has a robust Internal controls framework, commensurate with the size of its operations, geographical spread and changing risk complexity, impacted by varying internal and external factors. The Company s internal control systems comprises policies and procedures designed to ensure sound management of its operations, safekeeping of its assets, optimal tilization of resources, reliability of its financial information, and compliance. The Company has appointed Chartered Accountant, to give independent, objective, and reasonable assurance on the sufficiency and effectiveness of the Internal Controls. The audit firm evaluates and tests the effectiveness and appropriateness of internal controls on a regular basis. The Audit Committee is informed of significant audit findings after the evaluation, and measures taken thereof. The various process owners implement corrective measures in their respective domains based on internal audit results, thereby strengthening controls. The Audit Committee approves the yearly internal audit plan, examines the internal control system s sufficiency and effectiveness, assesses key audit observations, and supervises the implementation of audit.

HUMAN RESOURCES:

The Company believes that employees are at the core of its strategies to achieve all present and future organizational goals. The Company has consciously developed a positive working atmosphere that provides a satisfying work environment, promotes career progression and encourages employee safety. In the current financial year, we have focused our efforts on enhanced learning and development programs, enhanced communications, making our policies more employee friendly, and overall nurturing a culture of collaboration and teamwork. Our concerted efforts to enable the growth of our employees along with the Company, has helped us significantly in ensuring enhanced employee satisfaction in Company.

CAUTIONARY STATEMENT:

Investors are cautioned that this discussion contains statements that involve risks and uncertainties. Words like anticipate, believe, estimate intend, will, expect and other similar expressions are intended to identify Forward Looking Statements . The company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Actual results could differ materially from those expressed or implied. Important factors that could make the difference to the Company s operations include cyclical demand and pricing in the Company s principal markets, changes in Government Regulations, tax regimes, economic developments within India and other incidental factors.

	For and On Behalf of the Board of
	Interworld Digital limited
	Sd/-
	Peeyush Kumar Aggarwal
	Chairman
	DIN: 00090423
Place: New Delhi
Date: 03.11.2025