Mumbai: Chennai-based Pyramid Saimira Group will be investing a total of Rs 4 billion (Rs 400 crores) in China’s Jiangsu Pyramid Longzhe Group. The investment will be used in the first year of operation and will be deployed in exhibition, distribution, television content, music and production infrastructure seeding.
As has been reported by Businessofcinema.com, the company has also signed an MoU with the China Society Music Research Board, which is under the Ministry of Culture of the People’s Republic of China.
The Jiangsu Pyramid Longzhe Group has been formed as a follow up of this MoU. As per the details of the JV, the Jiangsu Pyramid Longzhe Group will operate theatres, distribute films and engage in other entertainment, arts and cultural activities in China. The new entity plans to launch one screen per day in Mainland China and further generate non-box office revenues also.
Pyramid Saimira Group managing director P S Saminathan said, "It is a proud moment for the Pyramid Saimira Group to become the first Indian entertainment company to foray into China. This is a landmark deal for us, given that the entertainment sector in China is highly regulated."
Saminathan added, "We are looking to invest close to Rs 400 crore in the Jiangsu Pyramid Longzhe Group in the first year of operation itself, which will be deployed in exhibition, distribution, television content, music and production infrastructure seeding. Through this venture, we will create a huge theatre chain network, food courts, gaming parlours and offer other entertainment services. We will bring international content to China and will also showcase and market local Chinese content across the world."
Jiangsu Pyramid Longzhe Group COO Venkatakrishnan said "We are extremely happy to partner with the China Society Music Research Board to bring in international entertainment content into China. We already have an established track record in operating multiplexes and stand-alone theatres in India, USA, Singapore and Malaysia. We are confident that we will now be able to leverage and extrapolate our expertise in the larger market of China."
The Association of Social Music Research in China (ASMRC) assistant-secretary general assistant Luo Shi Zheng said, "China is actively pursuing strong cultural ties and would like to strengthen Sino-India people to people cultural exchange and cooperation. Ultimately cultural communication will play a significant role in helping china and India to work together."
Longzhe Group chairperson Li added, "Relations between China and India have undergone a sea change in the last few years. Pyramid Saimira is one of the fastest growing companies in the world today and we are extremely happy to partner with them to grow and nurture the entertainment sector in China."