Satyam plans expansion with 600 cr investment
With the multiplex culture mushrooming across the country, Satyam Cineplexes has chalked out expansion plans for pan-India presence with an investment of Rs 600 crore which includes setting up 200 new screens over the next five years.
"We would invest Rs 500-600 crore over the next five years to set up 200 new screens across the country. The company plans to tap the Tier-I and Tier-II cities in a major way through these new multiplexes," Satyam Cineplexes Chief Executive Officer Ajay Bansal told PTI.
He said the company would fund the expansion through a mix of debt, equity and internal accruals but categorically ruled out any immediate plans of an initial public offering.
"IPO doesn't make any sense today. It would only make sense once we have a national presence. We would primarily raise the funds through private placements, debts and internal accruals," Bansal said.
Bansal said the company would expand its screens in two phases. In the first, it would set up 100 screens in the next two years and in the second, another 100 screens by 2012 to take the total number to 200 across the country.
The company presently operates three multiplexes with four screens each in Delhi and has signed up sites for two new projects in Kolkata and Bangalore.
As possible verticals, Satyam plans to set up a movie distribution company and a production house soon.
"We are looking at various possible routes of organic growth but have not yet taken any firm decisions. The company is looking at a movie distribution company and a production house as possible areas of future growth," Bansal said.