Fun Cinemas charts Rs 40 billion expansion plan

MUMBAI: In a bid to capture a larger audience share among the multiplex crowd, Fun Cinemas, which currently operates only 47 screens in the country, is planning to add approximately 1500 new screens by 2011.

An estimated budget of Rs 40 billion (Rs 4000 crores) has been earmarked for the expansion plans that will include around 500 multiplexes and 1000 single screens.

Speaking exclusively to Businessofcinema.com, Fun Cinemas chief operating officer Vishal Kapoor says, “We are rolling out our expansion plan very soon, which will have a two pronged strategy involving building new properties and hiring existing ones. Through the new venture we are planning to target the smaller centers in a major way apart from the big cities.”

Throwing more light on the new development, Fun Cinemas vice president marketing Shirish Handa adds, “We have already set the ball rolling and in a couple of months our first property in Guwahati will be functional, which will be followed by another one at Chembur.”

Stressing the need for multiplexes to address the low income audience, Handa adds, “The biggest challenge we are facing today is how to make budget multiplexes. We have developed a concept called Fun Junction, which we are rolling out in smaller places. The idea is to create a multiplex ambience in a low budget. We have already started Fun Junction at Gulbargha and the response has been encouraging.”

The multiplex boom is yet to make its presence felt in India. While there are approximately 12,000 screens in the country (most of them single screen theatres), the multiplex ratio stands low at 11 per million as compared to the US where there are 117 multiplexes per million and France with 77 multiplexes per million people. In India, the situation can only get better when the multiplexes start breaking away from the urban mould and start showing up in small towns and other rural centers.

Other multiplex chains like PVR, Cinemax, Shringar and Fame are also rapidly eyeing expansion. While PVR is targeting small towns and cities across India via their property – PVR Talkies, the other players have also been giving shape to their pan India expansion strategy.

With players like Pritish Nandy Communications, Pyramid Saimira Theatre, Parshavnath Developers and DLF amongst others also looking at cashing in on the retail boom, the multiplex space is only set to touch new heights.