Multiplex chain Satyam Cineplexes is planning to infuse around Rs 250 crore to set up over 100 multi-plexes across the country.
For the purpose, it will divest 25% stake to domestic financial investors to raise Rs 125 crore by mid-June.
Currently, Satyam Cineplexes is a fully-owned multiplex chain of Superior Films Pvt Ltd. The funds raised will be routed towards the expansion plans of the company.
Commenting on the expansion plans, Deven Chachra, managing director, Satyam Cineplexes, said, ?We plan to invest around Rs 250 crore in the next two years to set up about 104 screens across the country. Most of these properties planned will aim towards a fuller recreational experience by clubbing movie going with other associated leisure activities. For instance, our planned venture in Mysore is in partnership with Radisson Hotel. I believe that a preferred location for a multiplex must have a mixed land use with residential areas, townships, restaurants, malls within accessible distance. A standalone multiplex as a cut-off island is unlikely to lure footfalls.?
The 104 screens planned by Satyam will be in cities like Indore, Ludhiana, Dehradun, Kolkata, Rohtak, among others.
Chachra further said that unlike the existing properties, which are fully-owned by the company, the planned properties will be based on the lease model.
On being asked whether differential entertainment tax in states play a role in deciding on the location of multiplex sites being planned, Chachra replied in affirmative.
He said, ?We as an industry have already approached the government to consider ushering in uniform tax across states. Differential tax rates coupled with price ceiling on tickets has led to spatially skewed development of the industry. Much of the multiplexes are planned in states where tax breaks are offered. However, we want to enter Tier-III cities and smaller towns but the prevailing regulatory conditions are restrictive in many cases.?