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Mexican multiplex chain Cinepolis made the first acquisition through its Indian arm on Wednesday by buying out Mumbai-based Fun Cinemas, part of the Essel Group.
Cinepolis India did not divulge financial details of the deal, but claimed that this acquisition has now made it the third largest multiplex chain in the country in terms of revenues.
Javier Sotomayor, Managing Director, Cinepolis India, said: “We have a clear vision for emerging as the leader in cinema exhibition in India and operating 400 screens by 2017. This acquisition is a step in that direction.”
Buzz around the acquisition had been gaining ground since the past two months. The multiplex sector has been witnessing rapid consolidation due to slow growth of mall development, leading to sluggish organic growth. Also, analysts say a strong presence across the country helps multiplex chains strike more favourable financial agreements with film distributors.
Wider reach In a statement, Cinepolis India said this acquisition has helped increase its screen count to 193 across 41 multiplexes and 31 cities. Fun Cinemas operates 83 screens across 24 properties in the country.
This acquisition will help the company strengthen its reach in Delhi and Mumbai. “There are five markets where Fun Cinemas and Cinépolis are present together and the synergies brought in would maximise the profitability of our joint operations,” Sotomayor added. Asked if the company will rebrand all the cinemas, he told BusinessLine : “We are still in the integration process. It will take us another couple of months to have a clear road-map on this matter.”
Talking about the company’s expansion plans through the organic growth path, he said: “We have a very strong pipeline of more than 500 screens in the best shopping malls of the country. Having said that, we will continue to analyse any inorganic growth opportunity that comes to us. And if it makes strategic sense, we’ll pursue it.”
Cinepolis now operates across 30 cities that include Delhi, Mumbai, Bengaluru, Ahmedabad, Hyderabad, Pune, Chandigarh, Lucknow, Patna, Bhopal, Surat and Jaipur.
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