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IFC Invests in India’s Animation and Multimedia Sector

Washington D.C., June 2, 2003—The International Finance Corporation, the private sector arm of the World Bank Group, is investing up to $3 million in a leading animation services company, Dataquest Management and Communications Ltd, now DQ Entertainment Ltd. The Hyderabad-based business provides outsourced and proprietary 2D/3D animation and multimedia services to North American and European production houses.
The industry, now valued at approximately $500 million, is expected to grow at 30 percent annually for the next few years .  Large production houses are seeking alternative locations to traditional production centers to reduce rising labor and technical costs. The founding of animation schools throughout India and the government’s support for the industry have further spurred its current growth.
According to Mohsen Khalil, the World Bank Group’s director for Global Information and Communication Technologies, “This project is an important initiative for the future development of India’s animation industry.”  He added that “the animation industry, which requires highly skilled and creative professionals, is increasingly outsourcing to developing countries. India is well positioned with its sophisticated IT and media industry to take advantage of this global opportunity.”
Dimitris Tsitsiragos, director of IFC’s South Asia Department, commented, “This investment is part of our strategy to help innovative Indian companies expand into global markets, creating export earnings and employment.”
“IFC’s investment and presence will take our operations to the next level of technological advances by addition of the latest CGI/3D animation facilities,” said Tapaas Chakravarti, managing director and CEO of Dataquest M & C Ltd. He further added that “with over 700 professionals, we are very well positioned to take advantage of the business opportunity of providing good-quality, affordable animation products to the leading western animation and children’s entertainment companies.”
The sponsors of Dataquest are first Round Investors (I-Labs Group); TDA Capital Partners, Inc., a global private equity firm; IIML (IL & FS Group); and IFC.  
The World Bank Group’s Global Information and Communications Technologies Department promotes the transfer of information technologies to the developing world by focusing on projects that are expected to expand communications networks and use of information technology in developing countries; please visit us at   http://info.worldbank.org/ict/ . In 2002, IFC invested $10 million in NewPath Ventures, an India-based company that incubates and develops companies in semiconductor design and related software.
IFC's mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Since its founding in 1956 through the close of the last fiscal year on June 30, 2002, IFC committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's committed portfolio at the end of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.