HONG KONG – Disney is spending $230 million to increase its investment in leading Indian entertainment group UTV Software Communications.

The Mouse House is paying $200 million to up its stake in UTV from 14% to 32%, with a further $30 million buying a 15% stake in UTV Global Broadcasting, a subsidiary which controls new TV channels including youth oriented Bindass and its spin-off nets. UTV boss Ronnie Screwvala also increases his stake to a matching 32%.

Disney took its initial stake in the group in 2006 when it bought UTV's kids channel Hungama.

"We are pleased with our initial investment in UTV, which has strong local brands and media properties that provide complementary growth platforms to Disney’s existing branded efforts," Andy Bird, chairman, Walt Disney International, said.

"This partnership across movies, TV content, interactive games and broadcasting endorses our leadership in India and South East Asia and propels our already growing global story," Screwvala said.

Disney had a toehold in India with the ESPN-STAR Sports channel and set up a local office in Mumbai in 2004. Since then it has taken control of Hungama and last year moved into local movies through an animation alliance with Yash Raj Studios.

Disney India employs around 185 permanent staff, and anticipates accelerated growth across Media Networks, Consumer Products, and Studio businesses.

Other Hollywood congloms have recently been expanding their operations in India. NBC Universal last month spent $150 million to buy a 26% stake in NDTV (Variety, Jan 24, 2008), Viacom merged most of its Indian businesses with the TV18 group to form Viacom 18. And earlier this month global financier agreed to pay $100 million for a 3% stake in privately held Reliance Communications.