SRS Cinemas, part of the BSE- listed SRS Ltd, plans to add close to 20 screens to take its total count to 51 screens by the end of this fiscal as it eyes expansion across cities like Bhiwadi, Shimla and Lucknow.
"We have 33 screens across places like Faridabad, Bijnor and Gorakhpur. We have already signed up for locations like Bhiwadi, Shimla, Amritsar, Lucknow and Shahadara (Delhi), which will come up this fiscal," SRS Ltd Group President Tinku
He added this expansion will take the number of screens to 51 by March 31, 2013.
"The expansion is primarily across tier II and III locations. When we have a fair number of screens in these parts, then we would go for the larger cities and that too
would be primarily to strengthen our brand image," Singh said.
He added that the smaller towns have a lot of potential that is yet to be tapped.
"We are already seeing footfalls of about four lakh a month with the 33 screens we have. The smaller cities also have a lot of potential that we are looking to tap. We want to provide high-class multiplex experience to the residents in these towns and cities," he said.
The expansion would entail an investment of about Rs 25 crore, which would be funded through internal accrual, he added.
SRS Ltd has four lines of business: cinemas; retail; jewellery; and hotels and F&B. For the quarter ended September 30, 2012, SRS registered revenues of Rs 576.55 crore, up about 12 per cent from Rs 515.92 crore in the same period last year.
Of this, jewellery business accounted for the largest share (Rs 505.26 crore), followed by retail (Rs 42.07 crore) and cinemas (Rs 24.77 crore). The cinemas business witnessed growth of about 50 per cent in the reported quarter.