Chatterjee Group's Galaxy set for film foray

 Promoted by the Purnendu Chatterjee Group, a portfolio investor and the Ruias of Phoenix Mills, the company is in negotiations to finalise a script for producing a film. "We are in the midst of negotiations. During the course of next year, we expect to produce two film projects," said S Chander, director, GECL.

 "The entertainment industry is growing at 25 per cent per annum and it is currently a Rs 15,000-crore industry. There are no dearth of opportunities, and we want to create a space for ourselves. We see synergies between film production, distribution and the multiplexes business," said Chander.

 "Right now the entertainment industry is very fragmented and it is not fully corporatised. We want to get into this business as an established corporate and do the business in corporate style," he added. GECL is also open to acquiring existing theatres, refurbishing and converting them into multiplexes.

 The interest in the film business and multiplexes stems from the fact that the Chatterjees already have a 25 per cent stake in Pritish Nandy Communications (PNC). Chander said they expect to see synergies in the business in the long run.

 GECL went public in April 2000 and raised Rs 20 crore. At present, the Chatterjee group holds 37.5 per cent stake with another 37.5 per cent is held by the Ruias. The balance 25 per cent is with the public. The equity capital of the company is Rs 10.71 crore.

 The current market cap of the company is Rs 12.21 crore and it currently has Rs 21 crore in cash reserves which will be used for the expansion plans. GECL has set aside approximately Rs 5 crore for film production, another Rs 5 crore for the restaurant business and the balance is for the multiplexes business.

 Currently the company has two properties namely: the Bowling Co, the family entertainment centre, and 'Rain' a restaurant. The company is eyeing the possibility of duplicating the bowling company and its premium outlets within it. But, right now they are consolidating their position within Mumbai and then plan to take it outside Mumbai.