Is popular production house Lyca Productions shutting down?
on Mar 17, 2025
Lyca Productions, the famous production house, who forayed into film production in Tamil Cinema, with Kaththi - way back in 2014, are said to be shutting down after Jason Sanjay film. Interestingly, they started their operations with Thalapathy Vijay's film and could be shutting shop with Vijay's son, Jason Sanjay's film.
The production house have been key in green-lighting films like Ponniyan Selvan films - PS-1 and PS-2, 2.0 and Indian 2, Indian 3 in Shankar's direction. They have even been part of popular films like Vada Chennai, Chekka Chivantha Vaanam, Kolamavu Kokila, Don.
The issue started with the production house is said to be losses piled up due to films like 2.0, Chandramukhi 2, Lal Salaam, Darbar, Kaappaan, Ram Setu and several others from the past decade. Recent losses from biggies like Indian 2, Vettaiyan, Vidaamuyarchi also made it tough for them to survive, it seems.
While their parent company, Lyca Mobile is facing VAT and money laundering fraud cases in France, United Kingdom. Resultant financial issues have made Lyca Productions tough to survive with losses piling up. So, the production company has decided to stop investing in films at the moment.
They even half-exited from L2 Empuraan film starring Mohanlal due to financial dispute with Aashirvad Cinemas and Sree Gokulam Movies had to intervene for its smooth release. Some reports suggest that Gokulam Gopalan has returned the amount that Lyca have invested, that is, Rs.75 crores for the exit.
But the production house is still being referred to as the film producer, so they could be retaining some percentage of stake in the film's distribution. Lyca have faced a huge amount of backlash for sluggish and almost non-exisiting promotions for Vidaamuyarchi and Vettaiyan.
The rumors of them not being able to complete Indian 3 are also profound. Now, reports suggest that they have given Jason Sanjay, 90% of the budget as first copy investment and the young director has planned every bit of production to the tune to avoid any bigger financial troubles, it seems.
So, if Indian 3 will release, that will be their last biggie and Jason Sanjay's film will be their last production in Indian Cinema, it seems. Corporate houses trying to become production companies in Indian Cinema has been a failure story and Lyca seems to have also added themselves to the list that includes - UTV, Reliance, Sahara Movie Studios. Eros International, Pyramid Saimira, Moser Baer and many others.

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