Announcing the decision to form Film Exhibitors United Organisation of Kerala (FEUOK), Dileep claimed the backing of over 100 theatre owners for his new association.
The trigger for forming the new association was a strike called by Kerala Film Exhibitors Federation (KFEF) last month, virtually paralysing the Malayalam film industry during Christmas celebrations.
KFEF had held a one month long protest shutting down 353 A-class theatres under the association demanding a change in the sharing ratio from the collection of Malayalam movies between distributors and exhibitors.
The strike was finally called off following the intervention of Chief Minister Pinarayi Vijayan.
Dileep said FEUOK would be a good initiative for films and there will be no incidents of shutting down of theatres in the state.
"The film sector should not be paralysed," Dileep said.
He also claimed support of Malayalam movie stars Mohanlal and Mammootty for the new association.
Dileep is the president of FEUOK.
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