V R Films & Studios Ltd Management Discussions

M&E Sector Overview :

As we enter 2025, Indias M&E sector is poised to expand its footprint as a content powerhouse, fueled by innovation, strategic investments, and a resilient creative ecosystem. A key milestone in 2024 was digital media surpassing television as the largest M&E segment, contributing 32% of total revenues. With deeper internet penetration, the rise of Free Ad-Supported Television (FAST) channels, and a thriving creator-led economy, India is on course to become a global content hub. Strategic investments, private equity funding, and a surge in regional and vernacular content will further accelerate this transformation, positioning India as one of the fastest-growing entertainment markets worldwide.

or-led economy, India is on course to become a global content hub. Strategic investments

As per FCCI ME report 2024, the Indian M&E sector continued to grow in 2024, albeit at a relatively modest 3.3%; it grew by INR81 billion to reach INR2.5 trillion (US$29.4 billion). The M&E sector contributes 0.73% to Indias GDP. While the sector was 30% above its pre-pandemic 2019 levels, television, print and radio still lagged their 2019 revenues. Digital media overtook television for the first time to become the largest segment, contributing 32% of M&E sector revenues. The M&E sector expected to grow 7.2% in 2025 to reach INR2.68 trillion (US$31.6 billion), then grow at a CAGR of 7% to reach INR3.07 trillion (US$36.1 billion) by 2027

Indian M&E sector grew 3.3% in 2024 to reach INR2.5 trillion

Digital advertising: Digital advertising grew 17% to reach INR700 billion, which is 55% of total advertising revenues. Growth was led by search and social media (11%) and e-commerce advertising (50%), which reached INR147 billion. Included in digital advertising are spends by SME and long-tail advertisers of over INR258 billion Digital subscription: Digital subscription revenues grew 15% to reach INR102 billion. Paid video subscriptions grew by 11 million in 2024 to 111 million, across 47 million households in India. Paid music subscriptions grew from 7 million to 10.5 million as music streaming platforms disincentivized free usage, while news remained sub-scale at just 3.1 million paid subscription

The Indian M&E sector will grow at a CAGR of 7% and add INR564 billion in three years New media will provide 68% of this growth, followed by live events (12%) and animation and VFX (8%) Barring unforeseen situations, we expect all segments to grow or remain flat, except linear television, so long as Indias real GDP grows 5% or more By 2027, new media (digital + online gaming) will comprise 46% of M&E sector revenue, while traditional media (TV + print + film + radio + OOH) will contribute 41% of total M&E sector revenues Advertising will comprise 52% of total sector revenues in 2027, while share of subscription will reduce to 35% by 2027

OUR COMPETITIVE STRENGTHS

The following are the key strengths which enable our Company to be competitive in this business:

1. Well equipped with advance technology

The Company is well equipped with all the advance equipment‘s as needed in the Industry. This provides company with the edge over its competitors.

2. Experienced Promoters and Technically Sound Operation Team

Our Promoters have significant industry experience and have been instrumental in the consistent growth of our Company. Our management and team combines expertise and experience to outline plans for future development of our company. Our dubbing team comprising of writers, artists, directors, sound recording and mixing engineers. We always carry a trending outlook, optimistic nature and a confident attitude towards every assignment may it be Dubbing or Film distribution.

3. Marque Clientele

Our Company has worked with large number of marque clients which includes Viacom 18 Media Private Limited, Bangla Entertainment Pvt. Ltd, Discovery Communications India, Paramount Pictures Corporation, Paramount Pictures International Limited, SDI Media Hong Kong Limited, Sony Pictures Networks India Private Limited, Zee Entertainment Enterprises Limited, ATL Media Limited (Mauritius), Genx Entertainment Limited.

4. Wide number of languages dubbed

The Company has experience of dubbing various languages including various International languages such as English, Hindi, Tamil, Telugu, Malayalam, Punjabi, Bengali, Oriya, Urdu, Gujarati, Marathi, Malaysia, Mandarin, Thai, Russian, etc.

HUMAN RESOURCES

Our promoters, with their knowledge and experience are well-assisted by our Key Managerial Persons who have helped us retain entrenched relations with existing customers and also helped us engage new customers. We believe that our experience, knowledge and human resources will enable us to drive the business in a successful and profitable manner. Our Company is committed towards creating an organization that nurtures talent. We have employed a prudent mix of the experienced staff and youth which gives us the dual advantage. Our company also conducts regular training programs which is aimed towards strengthening skills, enhancing productivity and building sense of ownership among its employees.

INTERNAL CONTROL SYSTEMS AND ADEQUACY:

Internal Control System has been designed to provide reasonable assurance that assets are safeguard, transactions are executed in accordance with managements authorization and properly recorded and accounting records are adequate for preparation of financial statements and other Financial Information. Internal Check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control system.