Is Lyca Productions close to calling it quits? (Photo Credit – Instagram)
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Established by Subaskaran Allirajah in 2014 as a subsidiary of the UK-based Lyca Mobile, a virtual network provider operating in several countries, Lyca Productions debuted with Kaththi, starring Vijay. This film was a collaboration between Ayngaran International and Lyca Productions.
Recently, Lyca Productions has faced a string of flops, including Lal Salaam, Vettaiyan, Indian 2, and Vidaamuyarchi. Looking further back, films like Kaappaan, Darbar, Chandramukhi 2, and even the Bollywood Ram Setu failed at the box office. Given this track record, it’s no surprise that the production house is facing financial troubles.
L2: Empuraan Controversy
Recently, Lyca Productions made headlines due to issues related to L2: Empuraan, a film jointly produced by Aashirvad Cinemas and Lyca Productions. This marked Lyca Productions’ first Malayalam venture, but certain complications led Sree Gokulam Movies to acquire the movie.
According to reports, Sree Gokulam Movies paid INR 75 crores to take over L2: Empuraan from Lyca Productions. However, as part of the agreement, Lyca Productions’ branding continues to appear on the film’s promotional materials and credits.
There were concerns that L2: Empuraan might miss its previous release date due to Lyca Productions’ financial troubles, and promotions were halted for about two weeks. However, Sree Gokulam Movies stepped in to ensure the film was released as scheduled, and promotional activities have since resumed.
Looking Ahead
Indian 3 is a project currently in limbo. If released, it will likely be Lyca Productions’ final big-budget venture.
Reports suggest that Lyca Productions’ final film will be a project directed by Jason Sanjay, son of Thalapathy Vijay. According to Cinejosh, the production house has already allocated 90% of the budget for this film.
Financial Troubles and Business Closure
Returning to Lyca Productions’ financial troubles, the crisis isn’t limited to the production house alone; its parent company, Lyca Mobile, is also facing serious issues. According to Cinejosh, the company is under investigation in the UK and France for financial misconduct, including value-added tax fraud and money laundering, leading to significant financial strain.
As a result, Lyca has been forced to halt further investments in the film industry, at least for now. While we can hope for their recovery and future projects, their survival in the industry seems uncertain at this point.
