Cinepolis signs up for 300 multiplex screens, to roll out 80 this year

Mexican firm Cinepolis, the world's fourth largest multiplex operator, has signed up with a series of Indian mall developers to roll out some 300 screens entailing an investment of Rs 900 crore.

Cinepolis, which operates some 25,000 multiplex screens across 10 countries, is looking at new geographies such as India and Brazil to drive its growth.

The company is targeting 40 large cities including Bangalore, Mangalore, Bhopal and Jaipur to roll-out its multiplex screens.

“Our business model is to be inside the new shopping malls,” said Mr Milan Saini, Country Head and Managing Director, Cinepolis India Pvt Ltd.

“We think India has a lot of potential. There are 1.2 billion people buying about four billion tickets and we have close to 1,000 movies being produced every year. There is a lot of opportunity for more and better screens in the country,” Mr Saini said.

The company plans to roll out between 50-80 multiplex screens in the current year, Mr Saini said.

Investment plans

Cinepolis has earmarked about $7,00,000 (about Rs 3.15 crore) to invest into each multiplex screen, Mr Saini said adding that funding is from internal accruals.

Currently, the foreign direct investment in film exhibition is permitted up to 100 per cent through the automatic route.

Cinepolis, which entered the Indian market in 2007, has been rather slow in ramping up its operations. “The slowdown in real estate sector did delay our plans by a year. However, things are now looking up and the confidence is coming back. New projects are getting announced and we should be back to growth days next year” Mr Saini said.

Last year, the company opened its first five screen multiplex in Amritsar.

The company expects to roll out two of the large multiplexes in Pune and Thane this year.

“The 15 screen cinema in Magarpatta City in Pune and the 14 screen multiplex in the Viva City Mall, Thane will be the largest cinemas in the country this year,” Mr Saini said.

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