INOX to invest Rs 500 cr in 264 screens by 2010
With the multiplex industry in India expected to grow to US$ 2.3 billion by 2010, every major player in the market is on an expansion spree, reports Varun Soni.business Updated: Apr 26, 2008 00:48 IST
With the multiplex industry in India expected to grow to US$ 2.3 billion by 2010, every major player in the market is on an expansion spree. The latest in the list is Mumbai-based INOX Leisure, which is investing Rs 500 crores to come up with 264 screens across the country in the next three years.
The funds for investment are primarily going to come through the share market as well as through internal accruals. The areas that INOX is targeting are mostly Tier II and III cities like Bhopal, Coimbatore, Ranchi.
"We plan to set up 67 multiplexes in the country by 2010 that will include 250 new screens at the cost of Rs 2-2.5 crore per screen (minus the construction cost)," said Alok Tandon, INOX Leisure.
India today has only 13 screens per a million people as against the global average of 30-35 screens per million. "Being under-screened has presented us with a huge opportunity to expand in this market. The future is only going to get better with real estate development too picking up fast," said Tandon.
The company also has the first right of refusal on 38 malls being built by the Future Group in the next two to three years, which will further add a couple of more screens to its kitty.