Mumbai, 22nd December 2021 – Cineline India Limited (part of Kanakia Group), one of the most renowned real estate players in MMRDA region is re-entering the film exhibition business and will launch the same under a new brand in Q1 FY23.
Rationale of Re-Entry in the Film Exhibition Business
- The Company was present in the film exhibition business through its ‘Cinemax’ Brand since 1997.
- In 2012, the Company sold its multiplex business along with Cinemax Brand to PVR Limited under a non-compete clause which has already ended. Further, the Company had leased out 9 properties with 23 screens to PVR under leave and license agreements on which Multiplex operations were run by PVR.
- In light of expiry of the license period by 31st March 2022, coupled with weakening industry dynamics for the unorganized and single-screen film exhibition players, there is a tremendous opportunity for Organized players to increase their foothold in this segment. Therefore, Cineline with a strong history of operating the Film exhibition business has decided to re-enter and create a strong consumer-oriented brand in this segment.
- Post 31st March 2022, the Company with have access to its own properties and thus will be able to kick start its Film exhibition operations in Q1 FY23 through 9 properties with 23 screens across Mumbai, Thane, Nashik, and Nagpur having an aggregate seating capacity of more than 6,000 seats.
- The Company will grow the Film exhibition business in due course of time by acquiring theater properties Pan India on a lease basis.
- Post relaxation of lockdown restrictions and patrons returning to theaters, there is a huge opportunity in this space with a large lineup of Bollywood, Hollywood, and regional content pipeline in place till the next year.
Commenting on the same, Mr. Rasesh Kanakia, Chairman, said “We are delighted to re-enter the film exhibition business in India. With various leave and license agreements between us and PVR expiring on 31st March 2022, the Company will launch a new brand for the film exhibition business in Q1 FY23. We plan to create a strong consumer-oriented brand in this segment.
Considering the fact that as the exhibition business inches closer to a return to normality, post-CoVID, we see a strong pipeline of movies coming up in the next year, and patrons’ excitement to return to theatres will be quite high. We are seeing a big wave of opportunity and have big plans for growth in this business.”
