Satyam Cineplexes eyes tier II and III cities for expansion

Theatre chain Satyam Cineplexes plans to increase the number of screens to 40 by March 2011 from 17 at present as it eyes expansion across Tier II and III cities.

Theatre chain Satyam Cineplexes plans to increase the number of screens to 40 by March 2011 from 17 at present as it eyes expansion across Tier II and III cities.

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The company is looking at setting up multiplexes in cities like Jodhpur, Mysore, Aurangabad and Rohtak, which would be operational over the next 6-8 months.

"We will have screens in cities like Jodhpur, Mysore, Aurangabad and Rohtak in the next 6-8 months...We have 17 screens now and by March 2011 this should go up to 40," Satyam Cineplexes Managing Director Deven Chachra told PTI.

The company had raised about Rs 50 crore a year ago through private equity, which is being used for expansion, he added.

The company is also looking for expanding its presence through the inorganic route.

"We are open to acquiring a medium-sized company with 20-30 screens as this is a good way to expand presence quickly. We have investors lined up for any fund requirements," Chachra said.

Satyam Cineplexes would look at raising more funds in the next two years.

"If our expansion plans go as per schedule, we would look at raising more funds through private equity- say another Rs 50 crore and the same amount through debt," he said.

Satyam currently has three properties in Delhi with 17 screens.