“Retail is fuelling the cinema business”

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it easy to carry out cashless transactions and even gift movies), Mobile Box Office (a solution that enables mobile phone users in the country to book movie tickets for all Adlabs cinemas) and WOW (instant feedback).

Players such as Fun Republic are trying to the take the movie experience to a new level by making an average property a fun and entertainment destination with malls, eating joints. Is that the way ahead?

Since the past 40 years or so, one has witnessed and gone to independent cinemas located at high-street that tend to be extremely popular family destinations. We do feel that this trend will continue and you will see a healthy co-existence of independent high-street locations with entertainment and leisure activities as well as the new in-mall cinema experience. We have successfully been operating a mix of both such cinema types across our chain in cities like Mumbai, Kota, Meerut, Vellore etc.

Given that multiplexes are largely an urban phenomenon, do you see the focus moving to smaller centres (read B or C class towns) in the near future?

They would be going hand in hand. There is still great potential even in metros with some key catchment areas not being serviced to their potential. For example, our flagship Metro Adlabs cinema was launched in 2006 to cater to the affluent but under-serviced south Mumbai population. But each metro or town has a different need and understanding that is key.

Tell us about the challenges in the multiplex business? What are the areas where more investment is required to fuel growth?

One challenge arises from the waiver of entertainment tax for multiplexes as most of our properties are still less than five years old. However, business is also growing. A second challenge comes in the form of the booming real estate market, leading to higher rentals. We have been successful in protecting ourselves against the steep property rises by signing 15 year leases, thereby mitigating the higher rentals. Furthermore, a solution to the current multiple window regulatory approvals for a cinema to commence operations to a single window clearance will boost the growth of the industry.

The NRI markets are as lucrative for an Indian film as the domestic market. As a player in the production space, do you have plans for executing projects that are ‘crossover’ in nature?