Cinepolis of Mexico to invest Rs 1,600 cr

Cinepolis, a Mexico-based multiplex operator, is looking at expanding its footprint in India. The company started operations in India last year and has planned to invest $350 million (Rs 1,600 crore) in the next five years to operate 500 screens in 40 cities.

Founded in 1971 in Mexico, it is the world's fifth largest movie theatre circuit, operating 2,257 screens across 240 cinemas in six countries. The company operates its screens under four brands that span segments. It has a global workforce of 15,190 people.

Cinepolis brought up its first multiplex in Amritsar's Celebrations Mall last year. It aims to operate 40 new screens in seven cities over the next year. The company is in talks with developers and has zeroed on Jaipur, Bangalore, Thane, Patna, Bhopal, Surat and Ahmedabad for the theatres.

Cinepolis also plans to open India's first megaplex - a multiplex with more than 10 screens - in Magarpatta, close to Pune, early next year. "Another megaplex will come up in Thane district soon after," said Milan Saini, country head and managing director, Cinepolis India.

"In a megaplex with 10 screens, we would have the potential to run 50 shows in a day, which would provide a platform to small-budget films, too. A large number of screens would provide us long-term sustainability, as the Indian film industry presently churns out nearly 1,000 films every year, so there would be no dearth of content," said Saini.

"Cinepolis has aggressive expansion plans in India, as we feel the Mexican market is saturating. We are exploring newer markets. With rising per capita income, people's propensity to spend on movies has increased and we see an opportunity there," said Saini.

"While there are 40 screens per million people in Mexico and 120 screens per million in the US, the number is drastically low at 0.6 screen per million of the population here," he added.

Saini said Cinepolis was also looking at partners in India in the exhibition space. It is ready to invest in or buy out an existing multiplex chain. "We are in talks with some players for partnership and DT Cinemas (of the DLF Group) is also amongst them. However, nothing has been finalised yet," he said.