Multiplex operator Miraj Cinemas is planning to add 15 screens by the year end and is also eyeing acquisitions for expansion, a top company official has said.
Miraj Cinemas, which started in 2012, has 54 screens across India and is the fifth largest multiplex player in terms of number of screens.
"We are present in 11 states and we will be exploring another four to five states in the next six to eight months. This year we should have around 70 screens. Next year Diwali, we should have 100 screens," Miraj Cinemas Managing Director Amit Sharma told PTI here.
The company had invested around Rs 70 to 80 crore for 54 screens and will be investing Rs 1.5 crore each to open new screens.
At present, the company operates 21 multiplexes and will take the total to 25 or 26 by the financial year end.
The company, which is eyeing a topline of Rs 125 crore for the fiscal year, had an organic growth so far and will scout for acquisition next year, Sharma said.
"Our eyes and ears are open for a good acquisition. We didn't want to take the acquisition route in the early stage of
our expansion. We wanted to build a solid fundamental for our group rather than starting acquisition very early on our growth plan. Probably in the next financial year if we get a good deal we will look at acquisition," he said.
In June, PVR acquired real estate major DLF's DT Cinemas for Rs 500 crore.
In January, Mexican multiplex chain operator Cinepolis fully acquired Essel Group's Fun Cinemas.
In December 2014, Carnival Group acquired Big Cinemas from Anil Ambani-led Reliance Group for an estimated Rs 700 crore, making it the biggest deal in this sector.
In July 2014, Inox had acquired Gurgaon-based rival Satyam Cineplexes in a Rs 182-crore deal to strengthen its presence in north India. It also bought multiplex cinema theatre firm Fame India and Calcutta Cinema Private (CCPL) in West Bengal.
Miraj Cinemas has a strong presence in non-metro areas and Sharma said it is due to the slow growth in the mall industry.
"New malls are not coming in tier I cities and there is a real estate expansion happening in tier II, tier III cities. In Mumbai there has not been any malls which has been planned in the last couple of years. Even tier II, tier III cities are hungry for entertainment, so because of that you eventually get into the tier II, tier III cities," he said adding that only 35 per cent of the company's multiplexes are in tier I cities.
Sharma insisted that they don't compromise on the quality but reduce the capacity to 150 to 200 seaters in the smaller cities.
The company enjoys an occupancy rate of 32-34 per cent across India.
Online sales contributes around 15-17 per cent of the total ticket sales of the company but Sharma expects it to grow with the increasing usage of mobile wallet.
