Chandra To Focus On Multiplexes

Media baron Subhash Chandra has decided to invest Rs 3,000 crore in family entertainment centres across the country. The centres will come up under the brand name of E-Citi. In the first phase, Chandra's Essel group is targeting 50 centres in cities like Mumbai, Ahmedabad, Chandigarh and Delhi with an investment of around Rs 500 crore. The ultimate aim is to have 200 such centres. "We will be investing Rs 3,000 crore in these entertainment centres with the aim of redefining the leisure experience and providing the best out-of-home entertainment experience for the Indians," Sanjay Das, chief executive of E-Citi Entertainment (I) Private Ltd., a subsidiary of Essel Group, told Business Standard. Essel's investments in family entertainment centres will be made through its subsidiary E-Citi. The project is planned to be financed on a 2:1 debt to equity ratio. The centres will include multiplexes, discotheques, pubs, bowling alleys and retail stores to provide entertainment for the entire family. Till date, the company has invested Rs 25 crore in various projects and the first-phase cities include Lucknow, Agra, Bangalore, Chandigarh, Hyderabad, Calcutta, Ludhiana, Chennai, Indore, Pune and Nagpur. "The choice of location of an E-Citi centre will depend on the demography of the area, its economic conditions and the preferences and demands of the population in the area," Das said. The company expects that the Mumbai and Ahmedabad centres will start operations by the first quarter of 2001 and all the projects in the first phase will be operational by the end of 2002. For Delhi, the company has drawn up plans to invest in Raja Garden area and the land has already been acquired. The proposed multiplex will have four movie screens. The company has already undertaken construction at Andheri and Chembur in Mumbai. However, Das refused to reveal the location of the third project which will be set up in Mumbai. The multiplexes in Mumbai centres will have five movie screens. Das claimed that the Ahmedabad entertainment centre is the fastest growing of all the projects and will house a multiplex with six movie screens. At present, the capital base of E-Citi is Rs 25 crore which will be expanded to Rs 150 crore in the near future. The company also plans to make an initial public offer shortly.