Eros International to float on the LSE.

LONDON: So far Bollywood film distribution company Eros was synonymous with blockbuster Hindi films that it distributed in the UK. But now, the brightly coloured world of Bollywood is to meet the pinstripes of the City in London after Eros International announced its intention to float on the London Stock Exchange in a move that could see the Indian film group valued at more than $400m (£210m).

The distributor of Bollywood films in Britain is to seek a listing on the Alternative Investment Market. Founded in 1977, Eros claims to control 40 per cent of the market for Bollywood movies in the UK and distributes about 35 films a year. The privately held company, which hopes to raise $100m from the flotation, is understood to be the world’s leading distributor of Hindi films with an average of 35 movies a year over the past 14 years.

According to a report in the British press, in the last nine months of last year Eros made a profit before tax, interest and goodwill of $12.6m on turnover of about $32.2m. It predicts annual sales of about $44m, at the low end of expectations.

Even though we see a steady stream of other distributors from Bollywood entering UK film market, Eros is undoubtedly the leader. It has successfully distributed films blockbusters like Devdas and has a strong presence across the country.

Today, though of Indian origin, it has offices in cities including London and New York and owns 1000 titles. As well as arranging for Bollywood titles to be screened in cinemas, the company distributes films on video and DVD and produces its own films too.

Waqt — A Race Against Time, Eros' first major co-production, was the highest-grossing Bollywood film at the UK box office in 2005. Emboldened by its success, Eros plans to increase its production activities.

"We are now at a point in our history where the market is changing rapidly and the business is of sufficient size, reputation and financial strength to exploit the significant opportunities presented to us," said Eros chairman-CEO Kishore Lulla in a statement to the media. "As a listed company, we will have the increased financial strength to help us achieve our objectives."

Eros International has also moved into digital media, tying up with UK IPTV firm HomeChoice to supply movies and also recently tied up with Intel to supply movies through the new Intel Viiv platform. It also sells some downloads through its own site!

Even though India releases over a thousand films every year and Bollywood producers are prolific, revenues when converted to Sterling are low when compared with Hollywood films. PricewaterhouseCoopers estimated that industry revenues were $1.25bn in 2004, enough to cover just a few blockbusters.

The Eros team meanwhile is in Cannes where every year it makes its presence felt.