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Somasroy Chakraborty

Proposed expansion may attract minimum investment of Rs 1,000 cr

Kolkata, July 27

The number of multiplexes in the country is expected to more than double over the next three years from 135 multiplexes with 478 screens and 1,33,000 seats due the retail boom.

According to a report of Angel Broking, a retail stock broking house, India is expected to have over 1,100 screens and 3,20,000 seats by 2010. The proposed expansion is likely to attract a minimum investment of Rs 1,000 crore. "On an average, a multiplex screen in a metro would cost Rs 2 crore while in a tier-II city the average investment per screen would be about Rs 1.5 crore," Mr Hitesh Agarwal, Vice-President - Research, Angel Broking, told Business Line.

The report said the rise in disposable income and growth of organised retail sector as major growth drivers for the multiplex industry.

According to Mr Susil Dungarwal, a Mumbai-based retail and real estate analyst, “In multiplexes, the options to the consumers are more compared to a traditional cinema hall. Even today, for an average Indian family, the cheapest and best option for entertainment is movies and hence multiplexes are becoming social destinations for the families to hang out at.”

Of around 50 cities which have at least one multiplex by the end of 2006, nearly 50 per cent (with about 235 screens) are in Mumbai, Ghaziabad, Delhi, Pune and Ahmedabad.

“There exists ample scope for expansion of multiplexes in Kolkata, Bangalore and Hyderabad, where there is a significant concentration of the affluent classes with purchasing power that remains to be exploited,” Mr Agarwal said.

The multiplexes now account for 3.7 per cent of the total 13,000 screens in the country, but contribute 25-30 per cent of the box office collections in India.

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