Financial Daily from THE HINDU group of publications
Friday, Nov 05, 2004
Industry & Economy - Real Estate & Construction
Inox Leisure plans to invest Rs 100 cr in phase II expansion
Mr Shishir Baijal, Chief Executive Officer, Inox Leisure Ltd. - Shashi Ashiwal
Mumbai , Nov. 4
INOX Leisure Ltd plans to invest Rs 100 crore in the second phase of its expansion plan, which includes setting up multiplexes in cities like Bangalore, Chennai, Hyderabad, Kochi and Allahabad.
In the first phase, Inox had made an initial investment of Rs 150 crore to set up multiplexes at Pune, Vadodara, Kolkata, Mumbai and Goa.
The multiplexes in Mumbai and Goa will open to audiences on November 12.
The Mumbai multiplex is located at Nariman Point, the commercial hub of the city and is within the premises of Crossroads.
According to Mr Shishir Baijal, CEO, Inox Leisure, the South Mumbai multiplex required an investment of Rs 50 crore including the cost of property.
The amount has been partly funded by Canara Bank with a debt equity ratio of 1.5:1.
Developed over a sprawling 25,000 sq ft, INOX-Nariman Point has five auditoriums that boast a total seating capacity of 1,335.
"Each auditorium features wall-to-wall stadium style seating. There are Harkness screens, automated masking, fully automated Christie projectors and three way JBL speakers," Mr Baijal said.
This multiplex will release big banner films Veer Zaara, Aitraaz and Naach; apart from Garfield The Movie, Mughal-e-Azam and the award-winning Marathi film Shwaas.
According to Mr Baijal, the break-even period for a multiplex is around five to six years at 35 per cent occupancy.
"If occupancy goes up, the break-even period could come down," he said.
He feels that the increase in the number of screens will lead to an improvement in content.
Inox Leisure is also inaugurating its Goa multiplex at Panaji next week, which will later host the International Film Festival from November 29 to December 9.
The multiplex, designed and built by Inox, is owned by the Government of Goa, and has been taken on a 15-month lease by Inox, Mr Baijal said.
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