Hyderabad, July 19: In a bid to consolidate its position in the world animation market, Sriven Multi-Tech Ltd has acquired a 10.89 per cent in Color Chips (India) Ltd (CCL), from the promoters of the company, on July 16, 2000. Speaking from Los Angeles, chairman and managing director of Sriven Multi-Tech VV Subrahmanyam told The Financial Express that the company has acquired 11,00,000 shares of CCL in a cash deal of Rs 5 crore. The acquisition will be funded by associates and internal acruals of Sriven, he added.While Sriven will have two of its nominees on the CCL board, the control of the company will be in the hands of existing management and both corporates will continue to function as separate companies. Sriven will lend global expertise to CCL, he said.
The acquisition of a stake in CCL will help Sriven become a major player in the global market, particularly in the US, since both the companies are engaged in the business of 2D and 3D animation, he claimed.
"It is a strategic move for Sriven. Now we can jointly fight the competition arising from China, Korea, Philippines and grow our marketing efforts globally further rather fighting each other for the same pie," Subrahmanyam said.
With a total combined animators strength of 400 (including support staff), the acquisition will help us to speed up our operations in a big way abroad, he said, adding the company can now vie for the bigger jobs in the international market.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.