Inox to add 11 multiplexes in 6 months
http://www.dnaindia.com/money/1890452/r ... n-6-monthsInox Leisure Ltd, India’s second-largest film exhibition company, will start 11 multiplexes with about 48 screens in the next six months.
The company will invest between Rs90 crore and Rs110 crore for the expansion that would take the total multiplex and screen count to 84 and 329, respectively. The expansion would funded through a combination of internal accruals and debt.
Alok Tandon, chief executive officer, Inox, said the new multiplexes are at various stages of completion.
“The properties will further strengthen our position in the market while also helping us derive maximum value through economies of scale,” he said.
The new multiplexes are expected to come up across the country including newer locations such as Greater Noida, Gurgaon, Jalgaon, Madurai, Jamnagar, Manipal and existing markets such as Lucknow, Raipur, Jaipur, Kolkata and Vizag.
In another development, Inox has kick-started the process of phasing out the ‘Fame’ cinemas brand as a result of which all the Fame multiplexes will be renamed to Inox. The process has already started in Mumbai Bangalore and Kolkata, which would be followed by remaining cities. The entire process will be completed within the next 30-45 days from now.
“As part of the conversion, all the Fame multiplexes now boast of the 2K Digital technology, are 3D enabled and projection systems are high frame rare (HFR) ready,” said Tandon.
Inox will embark on a massive marketing and branding campaign spanning across the media platforms. While it owns a few properties, the company feels that leasing was still be a better approach.
“Malls tend to hold on to the multiplex part of the asset and Inox typically gets very competitive lease rental rates, given the kind of value the brand adds to the overall property,” said Tandon.