Karnataka illustrates a place in animation glory

ABAI, a non-profit body promoting the animation sector, sees Karnataka becoming a hub for the AVGC (animation, visual effects (VFX), gaming and comics) sector in the country.

The niche got a fillip when in 2012, the state government brought out the country’s first KAVGC Policy. “We were often incorrectly clubbed with the IT or the film industry. Being associated with films curtailed funds for the sector, since banks saw risk and would never lend loans. It is then that we appealed to the government for support,” ABAI secretary Ankur Bhasin said.

With government funding, ABAI could implement TTT (Teach the Trainer) programme to train animation teachers, and it also led to digitisation of arts colleges (DAC).

“The government has been very supportive. For TTT, we helped set up an animation lab in Bengaluru, where 36 students are enrolled free of cost. We are expecting a value-add of around Rs 2.5 crore-Rs 3 crore over the next three years. Also, in terms of the DAC, we have roped in seven fine arts colleges and established digital labs. We require more funding than the current (Rs 5 lakh per art college per year – for a period of three years),” Bhasin said. There are over 200 fine arts colleges in Karnataka. The body is also expecting a new government announcement on February 5 to incorporate an AVGC lab as well as a ‘Mediacity’ in Bengaluru.

“Though Hyderabad has been the traditional hub for animation, Bengaluru is not far behind. The Karnataka capital is home to many studios, including a centre from the Hollywood animation giant DreamWorks,” he said. Many movies such as Skyfall, Harry Potter franchise, Madagascar franchise and Life of Pi have had contributions made by studios in Bengaluru. “Online game creator Zynga, known for popular games like FarmVille and Mafia Wars, also has a presence in the city. 

According to a report by US-based market research firm MarketsandMarkets, “The global animation and gaming market is expected to grow from $122.20 billion in 2010 to $242.92 billion by 2016. The gaming market is the fastest growing, registering a CAGR of 13.71 per cent; the year-on-year growth of the animation market will be at a CAGR of 12.50 per cent from 2011-2016.” 

The animation, VFX and post-production industry in India has grown from Rs 4,200 crore in 2013 to Rs 5,080 crore today. With a CAGR of around 18 per cent, a lot of India’s business in AVGC is derived from outsourcing work done for foreign projects, Bhasin said.
According to ABAI President Biren Ghose, “The country is already more than 6 per cent of global production. When India started out, less than 15 years ago, it was less than a single digit.”

The number of people employed in the many domestic studios is over 8,000-10,000, which is expected to grow to 35,000-40,000 in five years. “A number of jobs are being created in VFX and animation, especially mobile gaming and apps,” Bhasin said.

But challenges remain. “One of the issues is the addiction to religious and mythological content, which limits market and creative thinking. We must also improve the quality of humour,” he said. “With investment of roughly $1 billion through comfortable access to banks and venture capitalists, the coming 4-5 years would ensure that the industry grows at 30-40 per cent,” he concluded.