Lyca Productions Headings Towards Shut Down

Lyca Productions, a renowned production house in Tamil Cinema, is reportedly shutting down its operations after producing Jason Sanjay's upcoming film. The production house, which began its journey with Thalapathy Vijay's Kaththi in 2014, has been facing significant financial losses due to a string of unsuccessful films. Movies like 2.0, Chandramukhi 2, Lal Salaam, Darbar, Kaappaan, and Ram Setu have all contributed to the production house's financial woes. Recent losses from big-budget films like Indian 2, Vettaiyan, and Vidaamuyarchi have further exacerbated the situation.

The production house's parent company, Lyca Mobile, is also facing VAT and money laundering fraud cases in France and the United Kingdom, which has resulted in significant financial issues. As a result, Lyca Productions has decided to stop investing in films for the time being. The production house had previously faced financial disputes with Aashirvad Cinemas and Sree Gokulam Movies over the film L2 Empuraan, starring Mohanlal. Reports suggest that Gokulam Gopalan has returned the amount invested by Lyca, which is approximately Rs. 75 crores, allowing for a smooth release of the film.

Lyca Productions has faced criticism for its sluggish and almost non-existent promotions for films like Vidaamuyarchi and Vettaiyan. Rumors have also been circulating about the production house's inability to complete Indian 3. In a bid to avoid further financial troubles, Jason Sanjay has reportedly been given 90% of the budget as a first copy investment for his film. If Indian 3 is released, it will likely be Lyca Productions' last big-budget film, with Jason Sanjay's film being their final production in Indian Cinema.

The failure of Lyca Productions serves as a reminder that corporate houses trying to become production companies in Indian Cinema often meet with failure. Lyca Productions joins a long list of failed production companies, including UTV, Reliance, Sahara Movie Studios, Eros International, Pyramid Saimira, and Moser Baer, among others.