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The first talkie in Malayalam was Balan, released in 1938. It was directed by S. Notating with a screenplay and songs written by Muthukulam Raghavan Pilli. It was produced at Chennai (then Madras) in the neighboring state of Tamil Nadu. 

Malayalam films continued to be made mainly by Tamil producers until 1947, when the first major film studio, U day, was established in Kerala, in Aleppo (Alappuzha) by Kunchacko, who earned fame as a film producer and director.

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