Zee Entertainment Enterprises said its entire catalogue of Bollywood films, recorded with Hindi dialogue, would be dubbed into Spanish.
The channel, Zee Mundo, is the first attempt to market Indian movies in the Hispanic market.
The firm plans to expand into Mexico, Argentina, Colombia, Peru and Chile.
Bollywood movies - known for their extravagant action sequences, song and dance numbers, and vibrant costumes - have already enjoyed some success in non-Hindi speaking countries such as Nigeria and China, and some parts of Latin America.
The company believes the Spanish-speaking market has cultural similarities to India, and that Bollywood content will appeal to audiences used to Spanish-language soap operas.
In its promotional material, the company said it would offer the channel in high definition, with a complementary on-demand streaming service.
"We are confident that Zee Mundo's programming will cross frontiers with storylines and themes that are relatable to the Hispanic audiences," said Amit Goenka, head of the company's international arm.
Zee Entertainment Enterprises, one of India's largest media companies, claims to reach over one billion viewers globally.