Mumbai: Multiplex chain operator PVR plans to invest about Rs 250 crore this year for adding about 90 new screens and towards rebranding of some of Cinemax theatres.
"We are looking at adding about 90 screens this year, which will take our total screen count to over 450... The capex for this year is about Rs 250 crore," PVR Chairman and Managing Director Ajay Bijli said.
The company, which had announced acquisition of Cinemax earlier this year, plans to rebrand the properties in a phased manner.
"We have been studying and cherry-picking some of the properties. In phase I, we have picked up 7-8 Cinemax properties (of the total 38) that we will rebrand. Most of these do not require much work, but then we want to give the consumers a great cinema experience. So, we are renovating these properties," he said.
These properties are located in cities like Delhi, Bangalore and Hyderabad, Bijli said, adding that gradually the Cinemax brand will be phased out.
In January this year, PVR had announced acquisition of 69.27 percent stake from the promoter group of Cinemax in an all-cash deal of Rs 395 crore through its subsidiary Cine Hospitality.
After the open offer (as per regulatory requirements), Cine Hospitality owned 93.19 percent stakes in Cinemax as on March 2013, according to a filing on the BSE.
According to Cinemax's website, it has 39 properties, 138 screens and 33,522 seats. In Mumbai alone, it operates at 14 locations.
Currently, PVR and Cinemax together have about 365 screens operating in the country.
Talking about Director's Cut, the company's luxury offering, Bijli said PVR is looking for locations in Mumbai and Bangalore for expansion.
"Though it is a high-end concept, we have received a very good repsonse. We are keen to expand Director's Cut and looking for locations in Bangalore and Mumbai," Bijli said.
Though currently, it is very small at about Rs 25 crore in business, PVR believes it has the potential to become a Rs 200 crore brand in three years, he added.
DC (Director's Cut) is a high-end format with theatres, restaurants, books and merchandise. The cinemas screen independent and rare films along with mainstream movies.
First Published: Sunday, June 9, 2013, 20:52