Cinemax plans Gujarat expansion

Cinemax India Ltd, the cinema exhibition enterprise of Kanakia Group, is planning expansion in Gujarat by foraying into four major cities in the state.

The company intends to set up seven multiplexes among cities like Ahmedabad, Vadodara, Surat and Rajkot. Cinemax already has presence in the state with a three-screen multiplex Star City Cinemax at Himmatnagar.

"Gujarat offers a bright business opportunity with growing moviegoers. So, by this Diwali, Ahmedabad, Surat and Vadodara would have a Cinemax each. It will have an investment of approximately Rs 120 crore in all. We are planning three multiplexes for Ahmedabad, two for Vadodara and one each for Surat and Rajkot," informed Devang Sampat, Vice President (Marketing and Programing), Cinemax.

According to Sampat, Cinemax has already started working on two of its projects, one in Ahmedabad and the other in Surat. For its Ahmedabad venture, the company has signed property deals at the newly constructed at Dev Arc Mall.

"Developing a property on our own is a better option in the long run rather than acquiring functioning single-screen theatres," he informed on the growing trend of acquisitions and renovations of single screen theatres.

Moreover, Sampat denied any such acquisitions by Cinemax.

A report by SSKI India, a brokerage firm, says that by 2010 the country will have over 2,000 multiplex screens. Big players in the entertainment business have made it clear that they will eye unexplored locations and set up multiplexes in tier II and III cities. On its part, Cinemax had announced earlier it plans to roll out 400 screens by 2011 in phased manner.

In the first phase it will build 100 multiplexes in India.