The Hindu Business Line : Sathyam mulls another multiplex

SATHYAM Cinemas, a leading multiplex here that recently signed up with IMAX Corporation of the US for two IMAX MPX theatre systems, is examining the possibility of putting up another multiplex in the city.

It also hopes to shortly finalise the design for an Imax theatre in its existing complex and approach the Government for approvals, according to Mr Kiran Reddy, Managing Director, Sathyam Cinemas.

The proposed IMAX theatre, which will have a giant screen — about 50 ft high and 70 ft wide — will have about 400 seats and be spread over 6,000 sq ft. Including the lobby and space for other associated facilities, the Imax theatre will cover about 12,000 sq ft.

Mr Reddy declined to provide details about the cost of the IMAX theatre, which includes the screen and the sound system, on the ground that the agreement with IMAX Corporation did not allow these details to be divulged. He said the investment in the proposed theatre was being worked out.

The agreement between Sathyam Cinemas and IMAX Corporation of the US provided for two IMAX theatres to be installed in Chennai. The first is expected to open in March 2006 and the second in 2008 at a location to be announced.

According to Mr Reddy, Sathyam Cinemas is scouting around for possible locations in the city to construct its second multiplex. The company would like to be in the "growing areas" of Chennai — places like Adayar or Velachery.

The money for the IMAX theatre in its existing multiplex as well as the second multiplex, which will house the second IMAX, will come through fresh investments from the investor group — some privately owned companies and a few individuals — that owns Sathyam Cinemas, according to Mr Reddy.

IMAX theatres, considered unviable till recently, are going through the transition of becoming marginally profitable. In isolation, an IMAX theatre does not make economic sense, but from an overall perspective of a multiplex it does, according to him.

However, for a multiplex like Sathyam, it makes economic sense in investing in an IMAX theatre as the benefits will percolate to the other cinemas in the complex, according to Mr Reddy.

At present, Sathyam Cinemas has five theatres, the largest of which has about 1,250 seats and the smallest 148 seats.

An IMAX theatre attracts a different kind of audience, more importantly films screened in IMAX theatres target children. This, therefore, is expected to benefit other theatres in a multiplex. "In terms of experience, it is (an IMAX theatre) unique and from an overall perspective, the benefits of an IMAX are good," said Mr Reddy.

He said that an IMAX theatre required changes in the rules governing cinemas — like seating, distance from the screen and viewing angle — and hence Government approval for the concept itself was required.

Sathyam Cinemas will inaugurate towards the end of next month its sixth cinema in the multiplex, with about 180 seats. It was originally to be named "Signature," but now Sathyam Cinemas has decided not to name it that. "We have not yet decided on what to name it," Mr Reddy said.

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