Delhi-based Rs 130-crore company and flagship company of the Media group of companies, Media Video, is planning to expand capacity at a capital expenditure of Rs 84 crore.

Of the total amount, the company plans to spend Rs 30 crore on producing TV video games at a mass scale at its Bhiwadi Plant. Until now, the video games were being imported.

The balance Rs 54 crore would be used for diversification process. The entire cost of expansion and diversification would be met through preferential allotment of shares.

Media Video, the largest DVD producer in India, and the second-largest in Asia, is all set to tie up with a Chinese company for importing channel lines in India.

The company has also tied up with Amoi Electronics for mobile sets and gaming software. To access its network more professionally, Media Video is looking at foreign partnerships for undertaking distribution of games in India.

Rakesh Gupta, director of finance at Media Video, said apart from the aforementioned activities, the company has also chalked out plans for foraying into real estate with an investment of Rs 125 crore.

Its real estate arm, Media Infrastructure Developers has identified a 175-acre land, in the national capital region for developing a country home or farm house project.

By offering a 1:1 rights issue for part-funding the real estate business, the company aims at raising around Rs 45 crore. It also plans to borrow around Rs 80 crore.

The land acquisition is expected to be completed by November end. However, another 325-acre land would be acquired in phases, to make the project a 500-acre one.

“We are targeting a 45-per cent growth in turnover this year, from last year’s Rs 107 crore. About 25 per cent growth in net profit is expected from the last year’s level of Rs 5.70 crore,” Gupta said.

With this move, the company expects its turnover to touch Rs 500 crore in the next three years from the present Rs 130 crore.

Media Infrastructure Developers would offer services such as sourcing of land, development of properties, both residential and commercial, development of farm houses and development of theme-based centres, which include shopping malls, entertainment centres, clubs, resorts and hotels apart from providing project management consultancy services.

( www.business-standard.com)