Leading multiplex chain Inox Leisure, which recently acquired Satyam Cineplexes and runs 358 screens, will be gradually adding another 156 screens over the next 12-24 months.

Acquiring Satyam Cineplexes has given Inox access to Delhi, Amritsar, Rohtak, Jodhpur and Mysore. “This acquisition strengthens our position in all the leading markets as well as gives us wider penetration,” said Deepak Asher, Director, Inox Group of Companies.

“We are always looking at both organic and inorganic growth strategies. Besides the acquisition of 38 screens through the Satyam Cineplexes deal we expect to add 156 additional screens in the next 12-24 months, taking our overall screen count over 500 screens,” he said.

The company said it has largely funded this acquisition by raising debt. The ownership of the three properties in New Delhi’s Patel Nagar, Nehru Place, and Janakpuri will continue to remain with the promoters of Satyam Cineplexes and will be leased out to Inox for operations.

Out of the 156 screens, about 29 screens will come on board through the upcoming properties of Satyam Cineplexes, while the balance would come in from Inox’s own organic growth pipeline.

Archrival PVR Cinemas currently operates across 445 screens in 101 properties.

Rebranding

“The integration process, re-branding as well as refurbishing of the properties will take about 6-12 months,” added Asher. However, he did not give specific details on additional investments that the company will incur to upgrade the properties.

Analysts say the multiplex industry has been witnessing consolidation for the past few years. Jehil Thakkar, head of media and entertainment, KPMG India, said: “In the exhibition industry, scale is important and gives leverage while negotiating not only with film studios and distributors but also commercial real estate players. In addition, due to the slowdown, there has been little opportunity to expand organically due to lack of enough commercial real estate opportunities.”

Analysts believe more consolidation is expected both among the big multiplex chains as well as the smaller retail chains.

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