Digital entertainment player KSS plans to invest Rs 90 crore for rolling out 180 screens in 80 locations in smaller cities over the next five years, a top company executive said.
KSS Miniplex is a division of KSS which is into setting up miniplexes through joint venture with the local partners and the proposition includes planning set-up, screening, operations and marketing. The partnership would entail profit share of 50:50.
"We are planning to invest Rs 90 crore in our miniplex business, expanding our reach to smaller towns of Gujarat, Maharashtra, Uttarakhand, Punjab, Chhattisgarh, Uttar Pradesh, Madhya Pradesh among others," KSS Miniplex chief executive officer Mridul Vyas told PTI.
"We have found that there is a huge opportunity to expand in smaller towns than metro cities because the occupancy ratio in these cities is almost 60 percent which is more than double of any multiplex or theatres of metro cities," he said.
"We will be rolling out over 180 screens covering around 80 locations in the country in Tier-II and Tier-III cities within next five years and each property will be developed as 2-screen miniplex as part of our expansion plan," he said.
The company, which is listed on the BSE and has already produced more than 30 features films, is looking at coming up with an IPO next year to fuel business expansion.
"We are exploring various options to fund Rs 90 crore investment including assessing the market once all clearances are in place," he said.
At present KSS has around 80 screens under various stages of implementation.
Besides, 17 screens of KSS Miniplex are already operational and 13 more screens will be added by the end of the current fiscal and additional 50 screens by March, 2016 and the remaining will come up by March, 2017, he said.
With this expansion plan, KSS is also expecting a quantum jump in its revenue.
The profitability of the current portfolio (KSS share) is around Rs 20 lakh per screen per year.
"With the number of operational screens set to grow manifold over next five years, we will witness a significant growth in revenue," Vyas said, adding that "the scope of services also covers assistance in revenue generation from the box office, F&B, education and in-cinema advertising".