Overview: Animation Industry is once again on its historical growth trend.

It is undergoing significant changes which are reshaping the industry demands and supply. It is growing and expanding in new ways and directions Industry growth continues to be driven by the new, smaller, computer animation production companies that are still starting up - taking advantage of the very low industry entry level financial threshold as hardware and software prices ease downward. It is expanding rapidly with many new production facilities based in Asia and acific !im countries. India has the world"s largest entertainment industry, a robust software industry and also skilled manpower, all essential ingredients for the growth of Animation industry. #a$or layer in the industry and competition level in the industry: %ill date the lords of the animation field are said to be &isnep, 'ony, and I#A( only. %he prominent players in I)&IA include *%+ %oons, ,adoo works, -rest -ommunications, entamedia .raphics, admalaya %elefilms, #oving ictures and %oon/ Animation. %he animation studios are catering to the re0uirements of segments such as feature films, television programmes, advertisements and computer games. -urrently, Indian animation players are predominantly catering to the needs of overseas television programme production companies. %he astonishing news is that 123 of the total consumption for animation is in the )orth American and -anadian markets, of which 123 of the production work is done in Asia. -ost of animation production in India is the lowest compared to other destinations like -anada, 4orea, %aiwan and hilippines as seen in the table. !ates of production of a half hour animated program -ountries *' and -anada 4orea and %aiwan hilippines India -ost 5in *' dollars6 7892,222-:22,222 7892,222-:22,222 7;22,222 < ;82,222 7=2,222 < ;22,222

%ill date Indian animation industry has around 82222 professionals available in the market, at this consistent rate of growth we might re0uire around 8 lakhs animated professionals by the year 822=. Apart from the desired technical skills, animation professionals must have innovative, artistic thinking along with colour sense and picture motion ideas. %his has been a ma$or task for hiring the right professionals. 'o, we have to have the training unit along with the development unit, which trains and grooms the candidates on the re0uired skill sets to build a body of manpower talent to fuel the growth

of animation market.. *nlike the I% industry it doesn>t re0uire only technical professionals? it provides employment opportunity to even a ;2th class drop out too. %his is a great opportunity for talented individuals from rural areas to make progress. 'tarting salaries in animation are close to !s @,222 to !s @,922 and once you gain experience and are good it could go upto !s A9,222. %he main sources of income for Indian Animation industry are +B( work for %+ shows 5 there are at present ;8@ channels in India, hence +B( work also is on high demand6, movies, Advertising 5 +B( and character animation6, computer and mobile gaming, comics, 'imulations 5#edical, Cngineering, Architectural, Cducational6, web publishing etc. Overseas entertainment giants like Dalt &isney, I#A( and 'ony are increasingly outsourcing cartoon characters and special effects to India. &irect $ob contracts from these Eollywood #oghuls or indirect contracts from other Indian companies like *%+ %oons, ,adoo works, -rest -ommunications, entamedia .raphics, admalaya %elefilms, #oving ictures and %oon/ Animation will be the constant source of work and money till the new start up attain a 0uality name in the market. )ot $ust the re0uirement of manpower is a challenge, capturing the big domestic market is a more daunting one. %hough made a notable entry into 8&, A& and flash work field, yet it has to prove itself as a ma$or player in feature film animation. One of the main reasons why there is a lack of active interest in special effects is that of economic feasibility and courage. Indian broadcasters pay very small amounts for producing multimedia and graphic clips, though producing animation is very expensive. 'etting up infrastructure for A& animation is also 0uite an expensive affair, and Indian film-makers are still not daring to experiment with animation in a big way. %he biggest challenges that the Indian animation industry is facing are awareness, skills and manpower development, infrastructure and financial support, which would re0uire industry and government to partner. In the last few years, India has emerged as a global powerhouse in technology development. Fut experts say that unlike animators in countries like -hina, 'outh 4orea or the hilippines, Indian animators have not been exposed to animation films. It is a relatively new industry. )ot much animated stuff is locally available in India. %he only experiences most animators have are from commercials and special effects fields. %here is lack of awareness about the industry and absence of substantial venture capital inflow. %here is also need for proper animation training in the country. %he animation industry has been lobbying for having international co-production agreements and, to enhance the industry"s global profile, a group of Indian animation houses have banded together to form the Animation roduction Association of India. Animation G #ultimedia companies are still waiting for attaining industry status to enable it to gain access to funding from banks and financial institutions. %here is also a need to set up more training institutes that focus on animation.

)eed to increase the demand for animation as a career option for our students with lucrative salary packages. In India Animation arrived with companies picking up contracts internationally to execute the labour intensive traditional 8& animation production processes in India. #ost hoped to benefit from the exchange rate arbitrage and labour cost advantages. Eowever this is not a *' in any form because countries like -hina, Fangladesh, -hile etc. have been able to offer exactly the same advantages even more competitively. #oreover the growth in the number of traditional animation artists in India has at best been flat leading to companies fighting for the same pool of talent with higher offerings. 'uggested Hocation for setting-up: Addressing the large gathering of delegates from the animation industry at )asscom organised and A government sponsored Animation India 8229 summit, Andhra radesh -hief #inister &r. I ' !a$asekhara !eddy expressed the A .overnment"s desire to create a conducive environment for flourishment of the animation industry,J Bor India to be prominent on the map, it is essential from the .overnment>s side to provide the right infrastructure like low cost housing, low cost studios, low cost 0uality power and congenial environment. A .overnment is ready to provide all these facilities to the animation industry so that the world recognises us as the next hub for animation.J Other sources within the animation industry who are close to the A government say that the .ovt. has mulled the creation of an Animation -ity in Eyderabad. 'ince lot of action is going to happen, our ideal location for setting up will be definitely KEyderabad>. 'DO% Analysis: '%!C).E%' Eigh imagination and creativity support due to rich historical and cultural heritages, mythological sagas etc. Availability of latest technologies. Hower production rates, in comparison to *' G *4 markets.

DCA4)C'' 'hortage of 'killed #anpower. Darm response from Indian market. Bield is still in the initial stages, yet to flourish in a ma$or way.

Only A@3 of over one million animation software packages available in market are being used daily to produce commercial computer animation and visual effects due to lack of skilled labour.

O!%*)I%I )A''-O# predicts a market of ;9 7 billion in near future. Increasing demand due to its applications in media, entertainment, architectural, medical and educational fields.

%E!CA%' 'erious competition from other Asian countries. &ue to limited labor availability, high attrition rates. lower production costs and tighter margins