"Not many people know this. But I've a great interest in graphic designs, graphic comics... Let's not forget, my early journey was in drawing and painting before I came into films. I've a good collection of comic books.
"I wanted to do an animation film for a long time. But there were no takers. 'Hanuman' has changed that. Though it had 2-D animation, the protagonist was a very well-designed character," Nihalani told.
"I took a chance. I met up with a friend, Sridhar Shanthanam, who has an animation studio - Iris Interactive - in Chennai. We started developing my idea with Ram Mohan who's the guru of animation of India. He created this baby camel as the hero of my film."
The baby camel named Kamlu will be located in Rajasthan.
"The character will be conceived and scripted by me. I'll produce and direct this film. It is bringing out the child in me. But Kamlu will be for viewers from five to 60 years, and above. It'll have all the ingredients from a Bollywood film. I'm very excited.
Nihalani says that "Kamlu" should be like a happy dream.
"That's the spirit in which I started writing 'Takshak'. By the time I reached the end, it had become a nightmare. But this time I want to make a happy film. I want to break the reputation of being a grim filmmaker."
The music is to be done by the Tamilian maestro Ilayaraja's son Karthik Raja.
"Since 'Kamlu' is being done in Chennai and since we hope to dub it in South Indian languages after it releases in Hindi, Karthik seems the right choice."
But Nihalani hasn't forgotten his socio-political antecedents.
"It goes into the water scarcity in Rajasthan. The entire film will be done on a computer. 'Kamlu' is my film for every child within us. Walt Disney established a paradigm when it made films for kids in every adult. My film will be for the adult in every kid."
The casting is being done at this very moment. Nihalani is also planning a film called "A Holy Fire", based on the Hindi novel "Rai Aur Parbat" by litterateur Rangya Raghav.
"I've been interested in this novel for many years. I've finally acquired its right. This would be a very stark and austere film. It's a beautiful love story with an ironical twist. I want to start this film by January. I'll do 'Kamlu' simultaneously."
Nihalani's last film "Dev" came more than two years ago.
"I wanted to search a new format of storytelling and a new kind of story. If one continues in the same mood one senses a staleness creeping in. I feel a new chapter beginning. Though my concerns remain the same. I need to freshen the energy within myself."
Nihalani has gone prolific.
"I want to make as many films as I can. I'm ready to make a third film next year. This one would be more mainstream and based on my own story and screenplay. I've accepted the fact stars bring in the audience. I've nothing against stars, as long as they want to work with me."