Financial Daily from THE HINDU group of publications
Tuesday, Mar 29, 2005

Port Info

Group Sites

Corporate - Corporate Disputes
Variety - Cinema

AVM Productions to split

Our Bureau

A view of the AVM Studios in Chennai

Chennai , March 28

AVM Productions, a partnership firm and one of the leading banners of the South Indian film industry, is all set for a split with the brothers Mr M. Saravanan and Mr M. Balasubramanian deciding to go their own ways, according to reliable sources.

The sources confirmed that talks were on for a split in the business and a decision could be expected in about a fortnight.

Mr M. Saravanan and Mr M. Balasubramanian, sons of late A.V. Meyyappa Chettiar, founder of the film production company in that name, are partners in AVM Productions. Mr M.S. Guhan, son of Mr Saravanan, and Mr B. Gurunath Meyyappan, son of Mr Balasubramanian, are the other partners in the company.

This will be the third split in the AVM group, which has been active in the film business for more than 55 years. The first was in 1978 when Mr A.V.M. Murugan, eldest son of Meyyappa Chettiar, who was then alive, split from the group. In 1984, Mr A.V.M. Kumaran, second son of Meyyappa Chettiar, split from the group. He now runs his business along with his son Mr A.V.M.K. Shanmugam.

Since then Mr Saravanan and Mr Balasubramanian have been together running the business along with their sons, who were co-opted as partners at different times.

"Difference of opinion," is the reason cited by the sources for the two brothers now deciding to partition the business.

The sources said that Meyyappa Chettiar himself had specified the method in which the property, a leading production studio in Chennai, was to be partitioned.

Hence, they did not foresee any problems in the process of partition between Mr Saravanan and Mr Balasubramanian going through. The sources said that despite the partition, all the sons of Meyyappa Chettiar could continue to use the "AVM" name, as specified by the late founder.

AVM Productions has a studio that has 12 floors. How this is to be divided will have to be worked out. The company gets its income from renting out the studios. AVM Productions has been producing serials for the Sun television network.

Mr Kumaran's company runs the AVM Rajeswari theatre and marriage hall, has three or four recording theatres and also produces serials for Jaya TV and Raj TV, two Tamil satellite television channels.

The AVM banner, started in 1948, has produced 166 films in various Indian languages and almost all the leading stars of Tamil cinema have featured in its films. After the last Tamil film produced by it, AVM Productions had more or less decided to concentrate on television serials as it found that the film business was no longer as lucrative as it used to be, especially because of the problem of pirated CDs that affected box office collections.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ONGC engages BDCL to expand in Bangladesh

Talbros Automotive on expansion mode; plans IPO in June
Tecumseh bags export order for refrigerator compressors
Shri Shakti EGM tomorrow
Dabur board okays Rs 40-cr investment in major arms
AVM Productions to split
VAT to do: A corporate guide
Glenmark, Shasun ink pact to develop drugs for US
Dr Reddy's strikes $56 m deal with ICICI Venture — Drug development for US market
Strides bets on new R&D centre for growth
Bay-Forge bullish on wind energy sector, aims at Rs 100-cr turnover
Mallya, S&N revamp beer biz top management

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line