K Sera Sera lines up Rs 1,140-cr investments

K Sera Sera Productions, a leader in the area of film production and distribution, has lined up Rs 1,140 crore of investments for various projects over the next 30 months. 

The projected capital outlay for the period will be divided among its 500 miniplexes, movie production and a golf resort, Sanjay Gupta, chief executive officer, told Business Standard here, ahead of the launch of its first miniplex in the city, at Gallops Mall. 

"To begin with, we are planning to invest Rs 250 crore in 500 miniplexes with 1,000 screens across the country, to be set up within the next three years. Although on a franchise basis of Rs 50 lakh per theatre, the management will be by K Sera Sera. The idea behind setting up miniplexes is to increase the viewership for cinema. Our vision is to bring affordable entertainment to the masses, combined with high technology. For that, we are investing Rs 360 crore for buying the satellite rights to exhibit movies at the miniplexes. The technology enables beaming of multilingual films instantaneously," Gupta said. 

 

On the group's plans to buy one of the two new teams to be added to the Indian Premier League cricket tournament in the fourth season that will start in 2011, Gupta said, "We are very serious about it but keeping a silent profile. We may go in for a fraction ownership, if not full ownership of a team." 

The company, which produced movies like Sarkar and Ab Tak Chhappan, will also set aside Rs 200 crore for content production, apart from Rs 150 crore for industry projects. 

"For the next 30 months, we have lined up a few projects, including an investment of Rs 180 crore for a golf resort and other investments," Gupta said. 

The company plans to raise the capital from banks, investments, qualified institutional placements (QIPs), global depositary receipts (GDRs) and, if need be, by borrowing the balance, he added. The company also announced its board had approved raising up to Rs 200 crore through QIPs, apart from $100 million (Rs 138 crore) via issue of GDRs. 

The company plans to roll out 150 miniplexes in the first year. The miniplexes will host a total of 150 seats with two screens each, at a maximum rate of Rs 80 for a ticket. Apart from entertainment, the company is also planning to utilise the miniplex as an education infrastructure for interactive classes and e-learning videos. 

"At district level via satellite, a student can be imparted education from international institutes. These will be two-way interactive classes and the students will be charged a nominal fee. We are in the final stages of discussions with a leading education provider for tie-up and the revenues will be shared equally." The company plans to start the e-learning programme at its miniplex in the few months. 

K Sera Sera, with around 50,000 shareholders, is a listed entity on the BSE, NSE, and Luxembourg Stock Exchange. With financial reserves of over Rs 300 crore, the company is expecting returns of 35 per cent year-on-year from the miniplexes.