Adlabs Films to operate Rave Cinemas

MUMBAI: Adlabs Films Limited has acquired the right to conduct cinema exhibition business at one operational multiplex in Kanpur and six more projects under implementation in NCR, Uttar Pradesh, Punjab and Haryana, owned by Rave Entertainment.


 


This acquisition, totaling 23 screens, would contribute to an increase in Adlabs’ multiplex presence by five properties (17 screens) within the next four months.


 


Rave Entertainment Pvt Ltd owns and operates the Rave Cinemas brand at Kanpur and has entered into license arrangements for operating cinemas at prominent retail locations in Noida and other centers in Uttar Pradesh, Punjab and Haryana. Five of the seven properties are also entitled to entertainment tax exemptions. The license terms between Adlabs and the promoters of Rave are subject to confidentiality provisions.


 


The licence provides Adlabs quick access to the Delhi-UP territory, which contributes 23 per cent to the all India box-office. Adlabs’ current screens stand at 62.
 
Adlabs Films chairman and managing director Manmohan Shetty says, “Rave’s properties are well managed and the projects under implementation are in carefully chosen strategic locations. Coupled with our own aggressive growth path, we are well on our way to becoming the market leader by July 2007. By the end of March 2008, we will have a presence in 70 cities, spread over all significant film territories that contribute over 80 per cent to the domestic box-office collections.”


 


Adlabs recently declared a total income of Rs 3480 million (Rs 348 crore), EBIDTA of Rs 1010 million (Rs 101 crore) and net profit of Rs 730 million (Rs 73 crore) for the 12 month period ending March 2007.

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