The company, founded in 1977, has appointed the investment bank Evolution Securities to advise on its options, which include a listing on the London Stock Exchange.

The business, which has Indian origins but today has offices in cities including London and New York, is the world’s largest distributor of Hindi-language films.

Eros has a library of about 1,000 titles and controls some 50% of the market for distributing Indian-made movies — known as Bollywood films — with British audiences thought to account for about a third of its business.

As well as arranging for Bollywood titles to be screened in cinemas, the company distributes films on video and DVD and has recently moved into producing its own films, too.

The group also has a partnership with Britain’s Homechoice, the digital-television company, to provide Bollywood movies on demand, and has an internet portal that allows fans to download its titles.

Eros is headed by Kishore Lulla, whose father was first into the international distribution industry when he established the business almost 30 years ago.

Both Eros and Evolution declined to comment on any strategic plans.

Although Britain and America remain the key export markets for Indian films, distributors such as Eros are looking to expand further into other regions, such as Latin America, South Africa, the Middle East and Australia.

Bollywood produces about 800 movies every year, more than double the number produced in America, and is said to employ 6m people.

The films have become known in the West for their vibrant colours, well choreographed song-and-dance routines and love stories. But until recently, the films rarely showed couples kissing.

In common with the western film industry, one of the biggest threats to Bollywood is piracy.

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