Pyramid Saimira to take control of movie advertisement firm
PSTL is close to buying a 70 per cent stake in Dimples Cine Advertising for an undisclosed amount in an attempt to add a revenue stream to its business, reports Saurabh Turakhia.business Updated: Aug 02, 2007 21:21 IST
Pyramid Saimira Theater Ltd (PSTL), the Chennai based multiplex chain, is close to buying a 70 per cent stake in Dimples Cine Advertising for an undisclosed amount in an attempt to add a revenue stream to its business, industry sources said.
Dimples specialises in the exhibition of ad films and slides in cinemas and multiplexes across the nation. It is the dominant player in this space and has a market share of close to 40 per cent.
Pyramid Saimira director N Narayanan said he was "neither denying nor confirming" the deal.
Pyramid is in the business of converting movie halls into digital theatres and also has a tie-up with CD-maker Moser Baer to seel VCDs and DVDs at the theatres it runs. Moser Baer, building on its large-scale blank CD manufacture, has bought rights for thousands of movies to sell CDs with value-added content.
Dimples Cine Advertising was founded by Nari Karamchandani in 1992. Its takeover may help PSTL in getting additional revenues through in-cinema advertising as well as integrate its operations.
The multiplex phenomenon is making in-cinema, in-multiplex advertising an attractive activity. As of June 2007, PSTL had 29 multiplexes and 325 screens under its control and aims to have a total of 2,000 screens by 2011.
PSTL recently raised $90 million (Rs 369 crore) through Foreign Currency Convertible Bonds (FCCBs) in the international market to fund its overseas acquisition plans. The company’s net sales were Rs 122.7 crore in the April-June first quarter, up from Rs. 67.6 crore in the previous quarter.