Business - India;Cinepolis plans $350-m India show,scouts for local partners

Meenakshi Verma Ambwani


NEW DELHI: Leading global multiplex player Cinepolis is entering India. The Mexico-based firm, considered to be the fifth-largest cinema operator gl
obally, has initiated talks with real estate developers in the country for its multiplex operations. Once it starts operations, it would become the only international multiplex player in the domestic market.

According to sources, Cinepolis India, which is a wholly- owned subsidiary of Cinepolis Mexico, has earmarked $350 million for its India operations.

Replying to ET’s e-mail questionnaire, Cinepolis India country manager Minal Saini said, “We are committed to India. Our initial target is to have presence in 40 cities. In the next 5-7 years, our goal is to have 500 screens.”

However, he added, that the company was facing constraints due to the lack of good quality malls and other construction delays. Besides, tie-ups with mall developers, the company could look at some standalone projects.

The exhibition chain is expected to position itself as a premium destination. “We are looking at cities with the right combination of affluence, movie watching propensity and population.

Our product would be well differentiated from Indian multiplexes and we would look at offering more at a lesser price point,” said Mr Saini.

The privately-owned Cinepolis operates 2,000 screens globally and has added 240 new screens this year. As per the information on the company’s website, the company clocked $538 million in revenues in 2006 end. The company is known to have pioneered the concept of Gold Class which has now been adopted by all the multiplex chains globally.

Cinepolis would be the second international multiplex to enter India. The only other player that had entered India was Village Roadshow of Australia, which collaborated with PVR’s Ajay Bijli to start one of the first multiplexes in New Delhi — Priya Village Road. The Australian firm exited India in 2003 due to its global restructuring.

According to estimates by PricewaterhouseCoopers and Ficci, the number of multiplex screens in India is expected to touch 5,000 by 2012, constituting around 40% of the total cinema screens. As of December 2007, there were 1,350 screens.