In the hey-day of studio-made films, this centre of Tamil cinema had 28 film studios. Today, only two of these work and now one of southern India's biggest production houses AVM Studios is also ready to close its Tamil film business.

"'Perazhagan' was our last full-length Tamil film," said managing partner of AVM Studios A.V.M. Saravanan.

The son of the visionary A.V. Meiyappan who set up the studios in 1948 said he had been forced to take the decision, as "film production in studios is no longer a paying proposition".

"Why should I spend money and invest in a film that is sold as a Rs.30 CD on the Mount Road pavement on the third day of release?" asked Saravanan.

AVM Studios has decided that its facilities in Chennai would be devoted to making television serials.

"Studio sets can be more purposefully used to shoot 300 or more episodes of a television serial where shooting is done for fixed hours, five days a week," Saravanan told IANS.

Most of the money even for "Perazhagan", which had a successful run, went to the distributors.

"The studio, with vast infrastructure and facilities, gets to retain little. We cannot shut off the air-conditioning or retrench the support staff or dispose of our stores and equipment just to cut costs," he said.

The sad reality is that studios in Tamil Nadu are on their way out.

Gemini Studios has become a hotel. Vijaya Vahini Studios has become a hospital. Majestic Studios has become a residential complex and the Sathya Studios a women's college. Golden Studios has become a warehouse.

The Modern Theatre in Salem, which produced "Sati Ahalya" in 1937 and made 117 films, is being turned into a residential complex.

Spelling out the problems, Saravanan said: "Newcomers give dates. But when a provision storeowner decides to make a film and promises more money, they cancel shooting dates. Now we are also working for the pirates."

He called for a government crackdown on video piracy.

The closure of the Tamil film production business of AVM Studios caps a remarkable innings in the industry that saw stars from Sivaji Ganesan to Kamal Haasan and J. Jayalalitha to Meena Kumari.

The success story of AVM Studios started in the 1930s when Meiyappan, then a small store owner in Tamil Nadu's Karaikudi town was fascinated by the gramophone player and set up a music production and recording house Sarasvati Sound Productions. He also began to make non-classical music records.

In 1934, Meiyappan produced his first film "Alli Arjuna", shot in studios in Kolkata. The film did not succeed but Meiyappan was an indefatigable dream merchant and made a second film "Ratnavali", which, too, drew a blank at the box office.

He then decided to make films on home turf and his third film ran for 25 weeks.

Meiyappan went on to produce films like "Harischandra" in Tamil and Kannada and the comedy "Sabapathy".

In 1947, Meiyappan produced "Naam Iruvar". This intensely patriotic film used the songs of poet Subramaniam Bharati.

In 1948, Meiyappan set up the AVM Studios in west Chennai's Vadapalani area.

In 1984, actor Kamal Haasan's film "Thoongathe Thambi Thoongathe" ran for 253 days, a record in itself. Rising star Kamal Haasan's "Sakala Kala Vallavan" had also come from the house of AVM a year earlier.

Other big films from AVM Studios were "Vaazhkai" in 1949 that introduced Vyjayanthimala, "Parasakthi" in 1952 starring Sivaji Ganesan and "Penn" two years earlier with Gemini Ganesan. The popular Hindi films "Miss Mary" and "Hum Panchi Ek Dal Ke" also came from AVM Studios.

In 1960, "Kalathur Kannamma" introduced child star Kamal Haasan and 1961 saw the first of the "Paa" series, "Paava Mannippu".

Balraj Sahni was one of AVM's favorite stars and did films like "Bhabi" and "Bindiya". One of Ashok Kumar's early films "Baap Bete" was made here in 1959.

Stars like Nimmi and Meena Kumari acted for AVM in "Pooja Ke Phool" and "Main Bhi Ladki Hoon" respectively.

Comedian Nagesh who stormed the Tamil screen in the 1960s became famous with AVM's "Server Sundaram".

Even Chief Minister J. Jayalalitha began dominating the screen in 1966 with AVM's "Major Chandrakanth" where she starred with Nagesh and 'Major' Sundararajan.