ICICI Venture Invests Rs 38 Cr In PVR Expansion Project

New Delhi: | Updated: Mar 27 2003, 05:30am hrs
ICICI Venture has invested Rs 38 crore in PVR Ltd, owners of PVR cinemas, to help fund the latters Rs 100-crore expansion plans. PVR is raising another Rs 40 crore through the debt route, and the rest through accruals.

Amongst its projects in the pipeline, PVR will be commissioning a seven-screen multiplex in Gurgaon in the suburbs of Delhi. The funds would also be used to build a five-screen and a 10-screen multiplex in Juhu and Goregaon respectively in Mumbai. Another ten-screen project in Phoenix Mills and two more with five and 10 screens at unidentified locations are planned for Mumbai.

According to PVR chief executive officer (CEO) Gerald V Dibbayawan, the investments could help increase the companys turnover sixfold from Rs 41 crore this year to about Rs 250 crore over the next three years. While addition of more screens would add to the turnover, he also expects better quality films to be produced in the future leading to higher attendances.

Producers in the country, will realise the value of and need for going beyond formula films and being more creative. This will definitely reverse the trend of only a few hits in the last few years thus leading to better quality films, he added.

ICICI is making this investment from its Rs 750-crore India Advantage Fund. Said ICICI Venture managing director and chief executive officer Renuka Ramnath, The entertainment industry is one of the focus sectors for our India Advantage Fund. We believe that the cinema industry is in the midst of a transformation and this creates an opportunity for strong players to consolidate and grow the market. Given its depth of experience, the strength of its management team and its brand equity, PVR is best placed to extract maximum benefit from the multiplex revolution and emerge as the leading national chain of cinemas.

PVR has been in the business of multiplexes for seven years, and currently is running four such complexes in Delhi. The company has recently set up a film acquisition arm to augment its business of cinema exhibition.

The distribution business, managed under group company PVR Pictures, specialises in the buying and distribution of English language independent films across the country. The most recent release was Chicago, winner of six Oscars this year including best motion picture.