nick18_in
Nikhil Gadodia
Hi all...
-------->>>>>>>>>>>>>>
Inox Leisure Ltd (ILL) is one of the leading players in the multiplex model of film exhibition business. ILL is a subsidiary of Gujarat Fluorochemicals Ltd (GFL) which is believed to be one of the largest manufacturers and exporter of refrigerants. ILL opened its first multiplex in May 2002 at Pune and has come a long way, it now operates 8 multiplexes across 7 cities having 32 screens and around 9290 seats. ILL plans to expand into 9 more cities with 11 multiplexes in the next 3 years.
Mr. Manoj Bhatia, CEO, Inox Leisure Ltd has graduated from Ecole Des Roche, a premier hotel management school in Switzerland. He joined The Oberoi Hotels in the year 1985 and later was associated with King Edward Hotel in Toronto. He was involved in setting up the Hotel Marine Plaza in Mumbai in the capacity of Regional Director and General Manager. Before moving to Inox he was the general manager at The Taj President Hotel.
Mr. Bhatia speaking to Anita Negi and Vikash Kumar of Indiainfoline says "…favorable demographic changes and an overall booming economy is set to bring a sea change in the Indian film exhibition business."
What are the trends being witnessed in the entertainment industry. What impact would it have on your multiplex business?
We are presently witnessing a different India from what it was or what it used to be. The demography of the population is changing. There are more and more image conscious young people who save less and spend more on entertainment than ever before. It’s interesting times for the entertainment industry as a whole. We too have seen tremendous growth in our business.
Given the high rate of increase in multiplex don’t you think there will be a supply glut going forward?
India has a total of 13,000 screens that makes it less than 13 screens per million population. More than 95% of theatres are stand-alone, single-screen theatres with fragmented ownership, unclear control, paucity of funds for maintenance and up gradation. A UNESCO study says India has a market for 20,000 screens today. We are just touching the tip of the iceberg. We are a huge country and we have been moving along at a snail’s pace for a long time. A lot more growth and action will be seen in the industry in the years to come.
What are the major threats relating to your business?
On the long term, there is definitely a threat of an over build. Piracy is another threat affecting the entire entertainment industry; it affects everyone from the producers to the exhibitors. Eventually, moving towards digitalization would help curb piracy.
Could you give us an overview of digitalization of the film exhibition business?
It’s still very early for me to talk about digitalization. The costs are exorbitant and the change over to digitalization depends on whether we are able to bring the costs down. As far as we are concerned, we have thought about it ages back. We have a tie-up with Christies (USA), which will take care of any obsolescence of our equipments, once digitalization comes in. We have a buyback agreement with the company.
What is the average cost in setting up a multiplex?
Average cost of a multiplex is Rs25mn per screen, excluding the cost of real estate.
How long would a multiplex take to break even? What is your average occupancy rate?
The break even for a multiplex could take around 5 years. At present we have an occupancy rate of 35% to 40%.
Being a company with no entertainment industry background, how do you propose to overcome this weakness?
In this disadvantage there is advantage, we have a way of thinking, for us we analyze everything, we look at the bottom lines very clearly, every single expenditure is scrutinized very carefully and for us marketing is a science. So we look at things differently.
You have advantages like tax benefits.?
Yes. We do enjoy from certain tax and entertainment tax benefits. At some properties, we have not opted for the benefits, as they were not financially viable under the terms they were offered in those states.
How do you differentiate yourself from other operators?
We are a professionally run company. Our promoters, Gujarat Fluorochemicals Ltd (GFL), have established their brand in the country over the last two decades. Secondly, in the industry that we are operating in, transparency in the collections done ensures good relationship with producers and distributors. As our collection figures are available at a touch of a button we share a very good relationship with them.
Give us some insight of your strategy for your distribution business?
We entered the distribution business only in September this year. Hence, there is nothing much to talk about it, we have taken distribution rights for few movies at four distribution circles at the moment. They are West Bengal, Rajasthan, Mysore and Mumbai.
Any plans to venture into film production or offering assistance in film production?
We partly financed the movie Mangal Pandey – The Rising. As of now we have no plans to grow this segment of the business.
-------->>>>>>>>>>>>>>
Inox Leisure Ltd (ILL) is one of the leading players in the multiplex model of film exhibition business. ILL is a subsidiary of Gujarat Fluorochemicals Ltd (GFL) which is believed to be one of the largest manufacturers and exporter of refrigerants. ILL opened its first multiplex in May 2002 at Pune and has come a long way, it now operates 8 multiplexes across 7 cities having 32 screens and around 9290 seats. ILL plans to expand into 9 more cities with 11 multiplexes in the next 3 years.
Mr. Manoj Bhatia, CEO, Inox Leisure Ltd has graduated from Ecole Des Roche, a premier hotel management school in Switzerland. He joined The Oberoi Hotels in the year 1985 and later was associated with King Edward Hotel in Toronto. He was involved in setting up the Hotel Marine Plaza in Mumbai in the capacity of Regional Director and General Manager. Before moving to Inox he was the general manager at The Taj President Hotel.
Mr. Bhatia speaking to Anita Negi and Vikash Kumar of Indiainfoline says "…favorable demographic changes and an overall booming economy is set to bring a sea change in the Indian film exhibition business."
What are the trends being witnessed in the entertainment industry. What impact would it have on your multiplex business?
We are presently witnessing a different India from what it was or what it used to be. The demography of the population is changing. There are more and more image conscious young people who save less and spend more on entertainment than ever before. It’s interesting times for the entertainment industry as a whole. We too have seen tremendous growth in our business.
Given the high rate of increase in multiplex don’t you think there will be a supply glut going forward?
India has a total of 13,000 screens that makes it less than 13 screens per million population. More than 95% of theatres are stand-alone, single-screen theatres with fragmented ownership, unclear control, paucity of funds for maintenance and up gradation. A UNESCO study says India has a market for 20,000 screens today. We are just touching the tip of the iceberg. We are a huge country and we have been moving along at a snail’s pace for a long time. A lot more growth and action will be seen in the industry in the years to come.
What are the major threats relating to your business?
On the long term, there is definitely a threat of an over build. Piracy is another threat affecting the entire entertainment industry; it affects everyone from the producers to the exhibitors. Eventually, moving towards digitalization would help curb piracy.
Could you give us an overview of digitalization of the film exhibition business?
It’s still very early for me to talk about digitalization. The costs are exorbitant and the change over to digitalization depends on whether we are able to bring the costs down. As far as we are concerned, we have thought about it ages back. We have a tie-up with Christies (USA), which will take care of any obsolescence of our equipments, once digitalization comes in. We have a buyback agreement with the company.
What is the average cost in setting up a multiplex?
Average cost of a multiplex is Rs25mn per screen, excluding the cost of real estate.
How long would a multiplex take to break even? What is your average occupancy rate?
The break even for a multiplex could take around 5 years. At present we have an occupancy rate of 35% to 40%.
Being a company with no entertainment industry background, how do you propose to overcome this weakness?
In this disadvantage there is advantage, we have a way of thinking, for us we analyze everything, we look at the bottom lines very clearly, every single expenditure is scrutinized very carefully and for us marketing is a science. So we look at things differently.
You have advantages like tax benefits.?
Yes. We do enjoy from certain tax and entertainment tax benefits. At some properties, we have not opted for the benefits, as they were not financially viable under the terms they were offered in those states.
How do you differentiate yourself from other operators?
We are a professionally run company. Our promoters, Gujarat Fluorochemicals Ltd (GFL), have established their brand in the country over the last two decades. Secondly, in the industry that we are operating in, transparency in the collections done ensures good relationship with producers and distributors. As our collection figures are available at a touch of a button we share a very good relationship with them.
Give us some insight of your strategy for your distribution business?
We entered the distribution business only in September this year. Hence, there is nothing much to talk about it, we have taken distribution rights for few movies at four distribution circles at the moment. They are West Bengal, Rajasthan, Mysore and Mumbai.
Any plans to venture into film production or offering assistance in film production?
We partly financed the movie Mangal Pandey – The Rising. As of now we have no plans to grow this segment of the business.
Last edited:
