CINE PLEASURE.

CINE PLEASURE

Multiplex majors now go regional with plans of expansion in Tier- II and Tier- III cities

CINEGOERS in smaller towns and cities will have the same movie viewing experience as their counterparts in some of the metros in the near future. The second half of the year will witness some more multiplexes becoming operational in these parts of the country as operators have drawn up major expansion plans. Faridabad-based developer SRS Cinemas plans to invest around Rs 500 crore for setting up more multiplexes and screens under its portfolio. As a strategy, the company is planning to open nine more screens in the next two to three months in Tier-II and Tier- III cities and some micro markets. "The company plans to reach 40 screens by the end of 2010. Currently, we have 12 screens in Delhi- NCR and Gorakhpur. This investment will not be just on screens but would also be utilised to develop food courts and retail area along with the screens," said Anil Jindal, chairman and managing director, SRS Group.

Another major player PVR Cinemas has expansion plans, too. PVR, which has 108 screens in 26 cities, is looking at growing organically as well as through acquisitions. Over the next 18 months, it is slated to add about 80 screens, of which 35-40 are expected to come up this fiscal at a cost of around Rs 80 crore. Foreign players too, have their eyes on the Indian market. For instance, Mexicobased theatre operator Cinepolis is planning to develop multiplexes in India.

The company is looking to touch a figure of 500 screens before 2016. "We are looking at inorganic growth and have begun preliminary discussions with several national and regional operators. Though talks have not advanced, we are on the lookout for strategic alignments across properties that can fit our needs. There is a strong possibility of industry consolidation in the future as some players are in need of cash and a few others are toying with exit options," said Milan Saini, country head, Cinepolis India.

Cinepolis will open its inaugural screens in Amritsar in the month of November. It has entered into a strategic partnership with real estate development company Advance India Projects Limited (AIPL). It has 110 screens across eight cities in the pipeline, which is likely to be operational in the second half of this fiscal. Another major player Big Cinemas also has plans to expand. Tushar Dhingra, chief operating officer (COO), Big Cinemas, said, "We plan to add 67 additional screens this year in India. We would be targeting all kinds of cities."

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