Satyam to invest Rs 250 cr to open 104 screens by 2010

Multiplex chain Satyam Cineplexes plans to open 104 screens across the country in the next two years entailing an investment of Rs 200-250 crore.

"We have already acquired 65 screens at Haridwar, Rohtak, Mysore, Greater Noida, Ludhiana, Gurgaon and Jalandhar. We will spend between Rs 200-250 crore on our expansion," Satyam Cineplexes Managing Director Deven Chachra said.

The multiplex chain, which currently operates 12 screens in three multiplexes in the national capital, now plans to go for lease model.

"We plan to have all the cineplexes in malls as the retail prices are going through the roof. This is very different from our current model wherein we own all our three cineplexes," he said.

Satyam plans to raise funds for expansion from either private equity or strategic alliance.

"We are looking for strategic alliance with overseas players as well for funding our expansion," he said, adding that nothing has been finalised yet.

"We would hit the bourses in next three years if we raise the capital through equity," he said.

On the back of the expansion plans, the company hopes that its revenue would increase from Rs 48 crore in the last financial year to Rs 325 crore by 2011.


Satyam is targeting tier II cities in the country instead of having more screens in the metros. This is mainly because of the high real estate prices in the metros.

Commenting on the future of the cineplex industry in the country, Chachra said, "We expect increased consolidation in the industry in the coming 3-5 years. Today, owner of a single multiplex is in the same boat as some time back an owner of a single screen was. Most of such guys would be acquired."

"In the long run, we would just have 3-4 operators owning 500-1000 screens," he added.

Eventually, Satyam is also planning to get into production of films. "If things go as per plan, we should be able to enter the film production business in another two years time. That is our eventual goal," he said.

To enhance the experience of the cine goers, Satyam has also started various services such as SkyBox, a 12-seater elevated box area with extra facilities like blankets.

He agreed that Satyam is little late in executing its expansion plans since other major cineplex players have already increased their screens manifold.