Mumbai-based multiplex operator Cinemax India, a part of Kanakia Group, plans to invest Rs 700 million to launch 50 more screens across the country after setting its foot print in Hyderabad and Maharashtra recently, reports Business Line.
“The expansions would be funded by internal accruals and from money raised by offloading about 32 per cent stake through an initial public offering in 2006. The remaining is owned by Kanakia Group,” quoted Devang Sampat, senior vice-president, Cinemax, in the report.
At present, Cinemax runs 75 screens at 25 locations. “At Kalyan, it began operations in two screen movie-halls with 479 seats, taking the total number of screens in Mumbai to 36 across 12 properties,” added Sampat.
Despite the economic slowturn, Cinemax maintains it is the right time to expand simply because land prices have been falling. “Last year was different due to competition and skyrocketing prices, now we can negotiate with builders for much better rates,” added Sampat.
— IndiaRetailing Bureau