Adlabs - Slow And Steady
Adlabs Lines Up Rs 60 cr Saurashtra Spread
Anil Ambani-controlled Adlabs Films has decided to invest Rs 60 crore for acquisitions of multiplexes as well as single-screen theatres in the Saurashtra region. As per its plan to invest Rs 200 crore in three years to acquire 300 screens across the country, Adlabs has entered into a deal with film-maker and exhibitor Mehul Kumar to develop or acquire cinemas in Saurashtra. These theatres will be managed by Adlabs in association with Kumar. The first of these acquisitions is a three-screen multiplex Mehul Cinemax at Jamnagar. This multiplex will now be re-christened as Mehul Adlabs.
Other locations targeted include Bhavnagar, Gandhidham, Rajkot, Bhuj and Junagadh. According to market sources, Adlabs is going to set up 15-16 screens in the Saurashtra territory at an investment of about Rs 4 crore per screen. Kapil Bagla, head of corporate strategy and acquisitions, Adlabs Films, said, "Saurashtra is an important territory for Hindi films, having sizeable box-office collections. Consequently, Adlabs will complete its exhibition presence in the entire distribution circuit of Saurashtra." With tax rates being brought down from 30 per cent to 20 per cent last month, the Saurashtra region will be provide good returns to exhibitors.
The company's strategy is to enter B-class cities via acquisition of existing cinemas as well as constructing new cinemas to offer cheaper viewing opportunity to its audience. The rationale is that Adlabs through its pan-India presence in the exhibition space will be able to effectively release a film either produced or procured by it. So, while in the metros and major cities, the films will be screened in both Adlabs multiplexes as well as others, in smaller cities these will be screened only in Adlabs theatres. Experts also point out that once Adlabs has a large network of theatres, it will be possible for the group to digitally transmit a movie from one centralised location to all the theatres through Reliance Infocomm's existing fibre optic network.
Adlabs has made an array of acquisitions of late, including some prime single-screen theatres in Mumbai such as Novelty and Sterling. The chain will also be soon opening one of its flagship properties, Metro Adlabs, in south Mumbai which will be the rechristened version of the Metro theatre.
Other locations targeted include Bhavnagar, Gandhidham, Rajkot, Bhuj and Junagadh. According to market sources, Adlabs is going to set up 15-16 screens in the Saurashtra territory at an investment of about Rs 4 crore per screen. Kapil Bagla, head of corporate strategy and acquisitions, Adlabs Films, said, "Saurashtra is an important territory for Hindi films, having sizeable box-office collections. Consequently, Adlabs will complete its exhibition presence in the entire distribution circuit of Saurashtra." With tax rates being brought down from 30 per cent to 20 per cent last month, the Saurashtra region will be provide good returns to exhibitors.
The company's strategy is to enter B-class cities via acquisition of existing cinemas as well as constructing new cinemas to offer cheaper viewing opportunity to its audience. The rationale is that Adlabs through its pan-India presence in the exhibition space will be able to effectively release a film either produced or procured by it. So, while in the metros and major cities, the films will be screened in both Adlabs multiplexes as well as others, in smaller cities these will be screened only in Adlabs theatres. Experts also point out that once Adlabs has a large network of theatres, it will be possible for the group to digitally transmit a movie from one centralised location to all the theatres through Reliance Infocomm's existing fibre optic network.
Adlabs has made an array of acquisitions of late, including some prime single-screen theatres in Mumbai such as Novelty and Sterling. The chain will also be soon opening one of its flagship properties, Metro Adlabs, in south Mumbai which will be the rechristened version of the Metro theatre.
posted by Raj @ 12:32 PM
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