Lyca Productions withdraws from Mohanlal's Empuran project

Lyca Productions, a well-known film production company, may be shutting down after its next project with Jason Sanjay. The company gained fame in Tamil cinema with the film Kaththi in 2014. It is now reportedly facing financial troubles, and has not yet responded to these claims. Lyca Productions has financially supported many successful films, including Mani Ratnam’s Ponniyin Selvan series and Shankar’s movies like 2.0 and Indian 2. However, recent financial losses from big-budget films, such as Chandramukhi 2, have added to their struggles. The poor performance of films like Indian 2, Vettaiyan, and Vidaamuyarchi has further weakened their financial position. Additionally, Lyca's parent company, Lyca Mobile, is involved in serious legal issues in France and the UK, including VAT and money laundering cases. These troubles have led to financial instability, forcing Lyca to stop new film investments. Recently, the company withdrew from producing L2: Empuraan, starring Mohanlal, due to a financial dispute, allowing another studio, Sree Gokulam Movies, to take over. Critics have pointed out the company’s ineffective promotion of some major films, which raises questions about its future in the industry. There are also concerns about whether Lyca will finish Indian 3. They have invested heavily in Jason Sanjay's debut film, making it essential for their future. If Indian 3 does release, it could be the last major project for Lyca, which may soon join the ranks of other failed production companies in the Indian film sector.