E-City Ventures, part of the $5 billion Essel Group, has outlined plans to invest another Rs 250 crore (Rs 2.50 billion) in its real estate and entertainment businesses by 2008. It has so far invested Rs 250 crore (Rs billion).
Fun Multiplex Ltd, a part of E-City Ventures, has earmarked Rs 165 crore (Rs 1.65 billion) for putting up 140 screens under the banner of Fun Cinemas across 35 locations in the country. It already has multiplexes in Mumbai, Ahmedabad and Chandigarh.
The company's first Fun Cinema in Delhi will be operational from December 23 and plans are afoot to have at least five screens in the Capital by the end of 2006.
The company has also tied up locations in smaller towns like Panipat, Bathinda, Rajkot, Surat and Kota where Fun Multiplex Pvt Ltd Chief Executive Officer Atul Goel says the only thing different from a metro multiplex will be lesser number of screens.
Such markets will not have more than three screens, compared with at least six for Delhi.
E-City Entertainment Ltd, another company under the E-City Ventures brand that develops family entertainment centres called Fun Republics, will invest Rs 350 crore (Rs 3.50 billion) in its expansion. It plans to have about 2 million square feet of Fun Republic space by the end of 2007.
It currently has three Fun Republics at Ahmedabad, Chandigarh and the only non-retail entertainment centre in Mumbai. Two more Fun Republics are at various stages of development at Lucknow and Coimbatore.
E-City Digital Cinemas Pvt Ltd, another part of E-City Ventures, has plans to digitise 500 screens by end 2007, of which 100 would be digitised by mid 2006. It will invest Rs 10 crore (Rs 100 million) for digitising 50 theatres in the Mumbai region.
The company will lease theatres in small cities and share revenues with the owners as part of its plans to deliver films via satellite to any given single screen theatre.
It has entered into a strategic alliance with Shree Vijay Raj Entertainment and Software Ltd, one of the leading distributors managing 90 cinemas in Gujarat and Maharashtra, for this purpose.
E-City Films (India) Pvt Ltd, the film distribution arm of the brand that has distributed movies such as Alexander, Million Dollar Baby and Sahara in the past, is in talks with independent film studios to distribute Hollywood films in India. It currently distributes 15-20 movies a year.
E-City Property and Management Services Pvt Ltd, the mall management and real estate service provider arm of E-City Ventures, will invest Rs 1 crore (Rs 10 million) on strengthening itself as a real estate brokerage and consultancy.
The financing is through both equity and debt. The debt to equity ratio in case of the real estate arm is 2:1. In other cases, it is 1:1.
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