Adlabs lines up Rs 7 cr for Gujarat multiplexes

Anil Ambani controlled Adlabs Films has chalked out plans to set up multiplexes in cities of Gujarat including Ahmedabad, Vadodara and Surat.

The company has acquired space for setting up a four-screen multiplex in Himalaya Mall in Ahmedabad's Drive-in Road area, its first venture in Gujarat.

Confirming the development, Kapil Bagla, head of corporate strategy and acquisitions, Adlabs Films said, "Our screens will be operational by the next four months. We plan to invest about Rs 7 crore for our multiplex at Himalaya Mall." We are looking at setting up a couple of multiplexes in Ahmedabad and for that we are considering some properties, he further said.

"Furthermore, we are planning at having about two multiplexes in Vadodara," he added. The company is scouting for a suitable location in Vadodara and talks are on with various developers in the city.

For its foray into Surat, the company is in talks with developers in that city too. Gujarat is an important state for us and we are targeting all the major and mini regions here, Bagla said.

Adlabs Films has also expanded its reach in Saurashtra by acquiring and developing cinemas there that will be managed by Adlabs in association with filmmaker Mehul Kumar.

The company has decided to invest Rs 60 crore for acquisitions of multiplexes, as well as single-screen theatres in the Saurashtra region.

The first of these acquisitions is the prominent three-screen multiplex, Mehul Cinemax at Jamnagar, now renamed Mehul Adlabs. Other locations targeted by Adlabs include Bhavnagar, Gandhidham, Rajkot, Bhuj and Junagadh.

In the metros and major cities, the films will be screened at Adlabs multiplexes as well as others, but in smaller cities, they will be screened only at Adlabs theatres.

Its strategy is to enter B-class cities via acquisition of existing cinemas, as well as constructing new cinemas to offer cheaper viewing opportunity to its audience.

In the Saurashtra region, Adlabs plans to set up 15-16 screens with which, the company will complete its presence in the entire distribution circuit of Saurashtra.