Hyderabad: Transforming Into India’s AVGC Powerhouse

By Pickle November 21, 2024

Jayesh Ranjan, Principal Secretary of IT and Industries, Telangana Government, highlights how with a blend of world-class infrastructure, an unmatched talent pool, and proactive governance, Hyderabad is not just hosting global AVGC players—it’s scripting the future of audio-visual industry in India.

Hyderabad is gaining recognition as the epicentre of India’s audiovisual, gaming, and creative (AVGC) landscape. Jayesh Ranjan shares how initiatives like Image Towers, strategic global engagements, and government-led innovations are positioning Hyderabad on the global entertainment map.

Hyderabad has always been a hub for filmmaking. How is the Telangana government leveraging this legacy to transform the city into an AVGC destination?

Hyderabad is unique because of its dual legacy—its roots in filmmaking and its technological prowess. On the cinematic front, Telugu films have repeatedly redefined Indian cinema, with global successes like Baahubali, Pushpa, Kalki 2898 AD and RRR—the latter even winning an Oscar for Best Original Song. On the technology side, Hyderabad houses over 1,500 IT companies, including global giants like Google, Microsoft, and Amazon, which conduct cutting-edge research and development here.

This convergence of creativity and technology makes Hyderabad the perfect breeding ground for the AVGC sector. Recognizing this, Telangana became the first state to develop a dedicated IMAGE Policy in 2016, predating even the National AVGC Policy. This comprehensive policy focuses on infrastructure, talent, and fostering innovation in the sector. A new Policy is also on the works.

Let’s talk about Image Towers. How does this facility stand out in the global AVGC space?

Image Towers is our flagship infrastructure project, set to open in October 2025. This world-class facility will house a 1.6 million-square-foot complex with state-of-the-art amenities like motion capture studios, render farms, post-production facilities, and plug-and-play incubators. Around 8 million– square-foot is likely to be completed when it get inaugurated next year (October 2025).

What sets it apart is its design, tailored for AVGC enterprises. Global studios can set up shop here without investing in extensive infrastructure, as we provide everything they need. Additionally, the IMAGE Towers will host the AVGC Industry Center of Excellence and training academies in collaboration with international institutions, ensuring that skilled talent is always available.

Talent is a major concern for global studios looking to set up operations. How is Hyderabad addressing this?

Talent development is one of our primary focuses. Hyderabad already has over 150 training centers that stay updated on industry requirements, from software tools to production techniques. We also collaborate with international academies to establish skilling institutions within Image Towers.

Additionally, Hyderabad’s workforce is known for its discipline and commitment. This reliability is an attractive factor for global studios, as they can scale operations quickly without worrying about turnover or talent gaps.

The Telangana government has been participating in global events like MIPCOM and Film Bazaar. What has been the takeaway from these engagements?

This is our second year at MIPCOM, and the response has been phenomenal. Events like these allow us to showcase India’s potential as a content and innovation hub. Global players are realizing that India offers not just a massive market but also unmatched talent, cost efficiency, and innovation capabilities.

At MIPCOM, I met with several global animation and VFX companies, and many are now keen to set up operations in India, specifically in Hyderabad. Our message is clear: Hyderabad is ready to meet their needs seamlessly, from housing to education for expatriate families, all while exceeding their expectations.

Innovation is disrupting the AVGC sector. How is Hyderabad preparing to stay ahead?

Innovation is at the heart of everything we do. Telangana was the first to establish a Center of Excellence for Gaming, VFX, Computer Vision, and AI, in collaboration with STPI. This center enables startups and established companies to experiment with cutting-edge technologies.

Hyderabad’s startup ecosystem is another advantage. Institutions like IIIT-Hyderabad are producing transformational solutions for gaming, virtual production, and animation. This environment encourages global studios to view Hyderabad not just as a production hub but also as a source of innovation.

Despite the opportunities, some view India as a challenging place to do business. How is Telangana addressing this perception?

We understand the concerns and are proactive in addressing them. For instance, I personally assure companies of seamless integration into Hyderabad—be it school admissions for expat families, housing, or even recreational facilities like golf memberships. Once we know, the company is keen and ‘yes’ decision on doing business with India.

We are changing the narrative that doing business in India is difficult. Telangana’s governance is transparent, business-friendly, and exceeds expectations, making Hyderabad the most inviting destination for AVGC companies.

What’s next for Hyderabad in the AVGC space?

With Image Towers nearing completion and global partnerships maturing, we’re entering a new era. Hyderabad will not only continue to be India’s AVGC hub but also emerge as a global destination for content creation, innovation, and collaboration. The next decade belongs to India, and Hyderabad is ready to lead the way.

IMAGE TOWERS, CYBERABAD

WHAT YOU GET WHEN YOU MOVE IN

Center of Excellence – dedicated office space for Animation VFX & Gaming Companies
Project being developed on 10 Acres @Hyderabad Knowledge Corridor
Project Cost : $ 1.2 Billions
Total Built up space : 1.6 mil sft
Rs 30 per square-foot, Rent frozen for 10 years
Plug & Play office space
Warm Shell, MOCAP Studios, Green Mat Studios, Sounds and aquistic studios
Colour coding, DI Studios, Render farms & Data Center
High Definition Bandwidth
Shared software services

IMAGE POLICY INCENTIVES

Reimbursement of Stamp Duty, Transfer Duty and Registration Fee
Reimbursement of recruitment Assistance & Energy under Open Access System,
Industrial Power Category Conversion & Reimbursement of exhibition stall rentals
Reimbursement of quality certification expenditure & Capital investment subsidy,
Reimbursement of production cost for animation theatrical released film,
Reimbursement of production cost for animation cartoon series,
Game production cost, Reimbursement of VFX Production cost,
Reimbursement of lease rental & Entertainment tax exemption,
Reimbursement of internet bandwidth charges & Allotment of land