Adlabs takes over 4 cinemas in Gujarat

Expanding at an frenetic pace, Adlabs Cinemas, a part of the Reliance Anil Dhirubhai Ambani Group, has taken over operations of four cinemas, in Ahmedabad, Gandhidham, Jamnagar and Palanpur. While one of them is a multiplex called R-World, the rest are single-screen theatres.

"We have taken over the operations of some existing cinema exhibition businesses in Gujarat. While we have already been running a newly-built five-screen multiplex for the last few months in Ahmedabad, it usually tends to be a costly procedure to set up new multiplexes. It is easy for the company to take over operations, on lease basis, of theatres which already have some basic infrastructure," said a Adlabs source close to the development.

Post the takeover, Adlabs Cinemas will have five properties in Gujarat. Overall, 50 per cent of the company's business involves managing existing properties on a lease basis, for periods ranging from 10 to 15 years.

"Most of the malls are new and require setting up of multiplexes from scratch. While in the case of existing properties, we refurbish them and add up at least two more screens if they are single screens. It helps in generating revenue by building on the credibility of the player in the market," the source added, without revealing revenue details.

Earlier, Adlabs Cinemas had expressed its intent to double the number of screens in the country from the then existing 74 screens by the end of fiscal 2007-08.

The company is believed to have invested around Rs 1.2 crore to Rs 2 crore per screen for its cinema business.