Mumbai: Cineline India Ltd, a part of MMRDA region-based real estate player Kanakia Group, is re-entering the film exhibition business and will launch the same under a new brand in Q1 FY23, announced the company on Thursday.
The company was present in the film exhibition business through Cinemax brand since 1997. In 2012, it sold the multiplex business along with Cinemax Brand to PVR Ltd under a non-compete clause which has already ended. Further, the company had leased out nine properties with 23 screens to PVR under leave and license agreements on which multiplex operations were run by PVR.
“In light of expiry of the license period by 31 March 2022, coupled with weakening industry dynamics for the unorganised and single-screen film exhibition players, there is a tremendous opportunity for organised players to increase their foothold in this segment. Therefore, Cineline with a strong history of operating the film exhibition business has decided to re-enter and create a strong consumer-oriented brand in this segment,” the official statement read.
Post 31 March 2022, Cineline India will have access to its own properties and thus will be able to kick start its film exhibition operations in Q1 FY23 through 9 properties with 23 screens across Mumbai, Thane, Nashik, and Nagpur having an aggregate seating capacity of more than 6,000 seats.
The company will grow the film exhibition business in due course of time by acquiring theater properties pan India on a lease basis. It believes that post-relaxation of lockdown restrictions and patrons returning to theaters, there is a huge opportunity in this space with a strong lineup of Bollywood, Hollywood, and regional content in place till the next year.
Chairman Rasesh Kanakia said, “We are delighted to re-enter the film exhibition business in India. With various leave and license agreements between us and PVR expiring on 31 March 2022, the company will launch a new brand for the film exhibition business in Q1 FY23. We plan to create a strong consumer-oriented brand in this segment.”
“Considering the fact that as the exhibition business inches closer to a return to normality, post-Covid, we see a strong pipeline of movies coming up in the next year, and patrons’ excitement to return to theaters will be quite high. We are seeing a big wave of opportunity and have big plans for growth in this business,” he added.
