Strategic Advisory for AVGC-XR Sector by Primus Partners

Background:
The Indian Media and Entertainment (M&E) industry is transforming due to rapid technological advancements and shifts in content consumption patterns. As digital platforms expand and visual storytelling techniques evolve, the industry is estimated to reach a valuation of $100 billion by 2030. A significant contributor to this growth is the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector, often referred to as a ‘sunrise sector.’ With projected growth of 14-16% annually, the AVGC-XR sector is expected to be valued at $26 billion by 2030. India has emerged as a talent hub for this sector, with artists, developers, and engineers leading the way in enhanced storytelling, immersive experiences, and cross-platform integration. Segments like Online Gaming, Animation, and VFX have risen to become the 4th and 6th largest sub-segments of the M&E industry as of 2023. Recognizing the potential, the Indian government has undertaken proactive measures, with ‘audio-visual services’ being designated as one of the 12 Champion Services Sectors.

The Opportunity:
The Ministry of Information and Broadcasting (MoIB) recognized the potential of the AVGC-XR sector to generate employment, promote Indian/regional culture on a global scale, and drive innovation in the M&E industry. In response, the government constituted a dedicated task force in April 2022, following the Union Budget 2022-23 announcement. The aim was to create a conducive ecosystem for the holistic growth of the AVGC-XR sector in India.
Primus Partners served as a Strategic Advisory Unit to support the ministry in realising the full potential of the AVGC-XR sector. The engagement involved providing strategic guidance on policy formulation, stakeholder management, and institution-building.

Key Contributions:
1. Formation and Functioning of the AVGC Taskforce:
•   Objective: Facilitate the establishment and effective functioning of the Taskforce to ensure coordinated efforts across the sector.
•   Approach:
   Assisted in drafting the Terms of Reference (ToR) for the Taskforce, defining its objectives, scope, and roles.
   Provided administrative and logistical support for the Taskforce, enabling smooth coordination and operations.
   Organized inter-state, inter-ministerial, and intra-industry discussions to align various stakeholders towards a unified vision for the sector’s growth.

2. Policy Formulation:
•   Objective: Develop comprehensive policy frameworks to guide the growth of the AVGC-XR sector at both national and state levels.
•   Approach:
   Assisted MoIB in drafting the National AVGC Policy and a Model State AVGC Policy to provide a clear roadmap for the sector, built on five key pillars:- Market Access And Development, Democratising Technology, Skilling and Talent Development, Financial Viability, Promotion of Local Culture, Diversity and Inclusion
   This Model Policy has become the foundation for State-Level Sectoral Policies aimed at fostering AVGC-XR ecosystems, with more than 10 states having formulated or actively developing their own policies.
3. Creation of a Blueprint for the Centre of Excellence (CoE):
•   Objective: Conceptualize a Centre of Excellence for AVGC-XR as a pivotal institution for sectoral growth and innovation.
•   Approach:
   Developed a Detailed Project Report (DPR) for the proposed National Centre of Excellence (NCoE) for AVGC-XR.
   The DPR outlined the vision, objectives, mandate, and scope of the CoE, along with the following components:
   Operating Model and Governing Structure: A framework for the CoE’s operations, governance, and decision-making processes.
   Financial and Economic Analysis: A comprehensive financial model that included key assumptions, revenue streams, costs, and a detailed 10-year Profit & Loss and Cash Flow Statement.
   Business Model: The NCoE's business model must be sustainable, ensuring long-term viability through public-private partnerships and government support.
   Provide MoIB with the necessary documentation to facilitate the establishment of the CoE.
   Prepared critical documents, including the Draft Shareholder’s Agreement, Cabinet Note, and the Committee on Establishment Expenditure Note.
   Assisted MoIB in navigating complex administrative processes to ensure timely approvals and implementation.
5. National-Level AVGC Workshop:
•   Objective: Facilitate stakeholder engagement and raise awareness about the opportunities within the AVGC-XR sector.
•   Approach:
     Assisted MoIB in conducting a National Workshop on the AVGC sector, bringing together industry leaders, government officials, and other stakeholders to discuss future trends and opportunities.
  Primus Partners curated the agenda, facilitated discussions, and ensured alignment between public and private sector participants
Impact:
Through its strategic advisory role, Primus Partners contributed significantly to the institutionalization and growth of the AVGC-XR sector in India. The successful functioning of the AVGC Taskforce, the formulation of a national policy, and the blueprint for the Centre of Excellence have laid a strong foundation for the sector's future.
These initiatives are expected to generate significant direct and indirect employment opportunities by empowering young creative talent, promoting innovative content, and showcasing Indian culture globally. The establishment of the NCoE will serve as a multiplier force for sectoral growth, fostering collaboration between academia, industry, and government.