Prime Focus made success thanks to Bollywood's new obsession - visual effects

He had no clue about the high-technology world of post-production and visual effects when he got into the business together with four friends in 1995. Today, Namit Malhotra's company controls 60 per cent of the Indian market, and also provides creative and technology services to filmmakers around the world.

"We did not have big qualifications and had never worked in big multinationals. We only had the zeal and commitment to do something good and work hard to achieve that. And, here we are today as the only Indian multinational in post-production and visual effects business," says Malhotra, whose closest contact with the industry then was through his family's camera rental business.

Video Workshop, Prime Focus' original name, was set up with an investment of Rs 5 lakh and a single non-linear editing system. Within two years, its studio was behind 23 weekly TV shows and Video Workshop's turnover had hit Rs 75 lakh.

Two years later, it took the big leap into the high-value advertising business and also changed its name to Prime Focus Pvt Ltd. "It was one of the biggest risks I ever took. We had a turnover of Rs 75 lakh and we were making an investment of Rs 2 crore to set up the first high-end finishing system, to provide services for cutting-edge advertising, broadcast, design and music videos," says Malhotra.

PRIME FOCUS

BUSINESS: Post-production work in advertising, films and television

TURNOVER: Rs 354 crore

TURNING POINT: In 1997, when, as a Rs 75 lakh company, it decided to invest Rs 2 crore in the lucrative advertising post-production business.

LESS-KNOWN FACT: TechProcess' story was published as a case study in entrepreneurial success by IIM, Ahmedabad in 2008.

LEADERSHIP POSITION: Controls 60 per cent of the Indian post-production and visual effects market.

"We did not have big qualifications… we only had the zeal and commitment to do something good" - Namit Malhotra, Founder and Managing Director, Prime Focus

The risk paid off. Today, almost all leading ad agencies and top ad film production houses are its clients. Prime Focus then added other segments such as telecine operations, film scanning and recording services, and digital post-production services for the big screen.

Next: the world. In 2006, it raised Rs 115 crore from the capital market and set up shop in the UK by acquiring a stake in VTR Plc, a high-end postproduction facility, and Clear Plc, a visual effects boutique.

After this European gambit, it got a footprint in North America by acquiring Post Logic Studios and Frantic Films' VFX, which had offices in Los Angeles, Winnipeg and Vancouver. The company was rechristened Prime Focus VFX.

"While our focus is to build a certain pipeline to be able to get work across borders to India, unlike the typical outsourcing company we are also creating a very credible frontend operation in these markets," explains Malhotra.

But while the infrastructure has expanded rapidly (14 facilities worldwide in past two years), the acquisitions are not expected to contribute to overall profits before another year. For the year to March 2009, it reported consolidated revenues of Rs 354 crore and a net profit of Rs 14.58 crore. For the past three years, it has reported a compounded annual growth rate of close to 25 per cent.

The difficult part is in retaining the creative spark, acquiring the technological strength and the scale. "It is a unique challenge to maintain this triangle of creativity, technology and scale," Malhotra says. As for people, Malhotra takes pride in employing freshers for their creative spark. Fancy degrees are optional.