Fame India Ltd, the fourth largest multiplex chain in the country, is looking to strengthen its presence by doubling the number of screens to around 140, from the existing 68 screens by 2009-end.
Fame plans to invest around Rs 150-180 crore over the next year to achieve its target. ?Of the planned additional screens, 50% will be in western India, which comprises Gujarat and Maharashtra. The rest will be a good mix of screens in the eastern and northern parts of the country,? said managing director, Fame Cinema. Almost all the upcoming screens will be integrated with malls in the respective regions, he added.
Funds for the expansion will be sourced from internal accruals, apart from funds that have already been raised through equity and debt.
?In the first phase, properties based in Punjab in Amritsar, Chandigarh and Panchkula, among others, will become functional, latest by May 2009,? said Shroff. As regards to expansion plans in North India, the company has consciously steered clear of Delhi for now. This, since the city?s market is saturated, and is also dominated by PVR.
Akin to its recent tie-up with Kingfisher Airlines, Fame is exploring different models of brand association options with oil companies, telecom players and other airline companies. Insurance and banking could be other sectors where potential for such alliances related to bundling of services exist, said Shroff.
Asked if the economic downturn could significantly impact the multiplex business, Shroff said, ?Consumer behaviour may not witness any major shift, given that a 15% price hike in tickets as well as food and beverages did not bring about a major shift. But, the expansion plans of multiplex owners could be affected. The number of malls and multiplexes to come up in 2010 will be lower than that of in 2008 and 2009.?
For now, Fame plans to convert the remaining 35 of its 68 screens into digital format, and redeploy the projectors in properties coming up in Tier-II cities.