He launched the label Monday by releasing the music of his latest film 'Khushboo, The Fragrance of Love' on it.
Actors Dharmendra, Jeetendra, Jackie Shroff, Danny Denzongpa and Suniel Shetty attended the event.
Nihalani, who has produced 22 movies since 1981, is one of the few surviving independent Bollywood filmmakers to go on making movies in the changing dynamics of the film industry now dominated by the entertainment corporate entities.
He talked about his long years in the film industry, first as distributor and then as producer, and the cooperation and guidance that he received from people like Dharmendra, late Sanjeev Kumar, Shatrughan Sinha, Javed Akhtar, Bappi Lahiri, David Dhawan, and late lyricist Anjaan.
Nihalani has to his credit the launch of actors like Govinda, Neelem Kothari, Suniel, Chunky Pandey, late Divya Bharati and Raageshwari.
In 'Khushboo' too he introduces Rishi Rehan and Avantikka.
'I am introducing these two new finds in my latest venture. But I do not know whether I will be able to afford them for my next movie,' he said, thus indirectly commenting on the sky-rocketing star prices, the main deterrent for most of today's independent filmmakers.
Being made under the banner of Ntree Entertainment Pvt Ltd, the movie has music by Adnan Sami and lyrics by Javed Akhtar.
The cast also includes Raj Babbar, Prem Chopra and Himani Shuivpuri. The movie is directed by Rajesh Ram Singh from a story and screenplay by Pathik Vats.