Multiplex seat market sitting pretty on US boom

After information technology (IT) and pharma companies, it is the turn of entertainment companies to look to India for product sourcing.

Entertainment companies in the US and Western Europe are looking at India for supply of seats and related components for auditorium, theatre and cinemas.

Ability to make quality seats at one-fifth of the costs, without compromising on quality, is one of the reasons for this sudden interest, said industry officials.

"American companies can source seats and components from India at 20 per cent of the costs incurred by them in the US, with quality remaining unchanged," said Amit Narayan, senior executive marketing and sales, Krishna Quinette, a leading domestic manufacturer which supplies seats to PVR Cinemas. Krishna Quinette has 40 per cent market share in multiplex seats in the country.

Krishna Quinette is a 50:50 joint venture between Krishna Maruti and French company Quinette Gallay. The company also exports seat components to France.

"In 2003, we started with exporting parts for one model. Now, we export parts for ten models and are looking at adding another three models this year," said Amit.

Vijay Jyot, another leading domestic manufacturer of theatre seats, will supply components for theatre and auditorium seats to Theatre Solutions, a leading US based-company.

Vijay Jyot, whose clients include Inox and Fun Cinemas, has also a market share of 40 per cent in multiplex seat market, "There is a trend to source multiplex seats and components from India. A few years back, our exports began with Tanzania and Kenya. Now, we are getting orders from companies in the US. Already, we have received two orders from the US," said Rajesh Panchal, marketing manager, Vijay Jyot.

Though the export market is at a nascent stage, domestic players expect it to grow in the coming years on the back of the global multiplex boom, said Amit.

In future, western companies will focus on India and China for their multiplex seats and component needs.

The design of seats differ across markets. In India it is the push-back kind while Americans and Europeans prefer the fixed or rocking seats. The difference in layout is overcome with foreign companies supplying the design and technology.

"Theatre Solutions provides us design and technology to manufacture components for fixed seats which are then assembled by them," said Rajesh Panchal.

Last year, Krishna Quinette exported components for more than 10,000 seats, which contributed 50 per cent of the company's total turnover of Rs 15 crore. For Vijay Jyot, exports contributed 20 per cent of its turnover of Rs 8 crore .