A man looks at his mobile phone in Manajipet village in the district of Gadwal, Telangana, India. (Photographer: Dhiraj Singh/Bloomberg)

Alpha Ideas 20-20: Here’s Why Maximal Capital’s Sarvesh Gupta Bets On Shemaroo Entertainment

Shemaroo Entertainment Ltd.’s digital business is likely to aid the company’s next leg of growth, according to Maximal Capital’s Founder Sarvesh Gupta.

The company’s digital platform contributes 25 percent to its revenue, he said, adding the industry has been growing at 30 percent. Shemaroo’s television segment has also been growing consistently in India, Gupta said.

The media content house, according to him, has a unique business model. It does not spend on fresh content as it is risky and aggressive and focuses only on second cycle of films—buy a film after it is a success, Gupta said at the Alpha Ideas 20-20 event in Mumbai. The return on capital employed for Shemaroo is 20 percent compared to peers like Balaji at 10 percent, he said.

Watch Sarvesh Guptas Presentation Here:

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