Shringar enters state, sees scope for expansion

Shringar enters state, sees scope for expansion
Praveen Bose / Chennai/ Bangalore January 04, 2008
The company is set to open its first multiplex in the city in January.

Shringar Cinemas, the second largest multiplex operator in the country after PVR, sees a growing future for itself in the city. With its first facility, the four-screen Fame Lido, opening where the erstwhile Lido theatre used to be, it has two more in the pipeline. But the city can take in a lot more.

This is because of several reasons. First, with less than 10 multiplexes around, the city can absorb as many as 15 more, going by the norm of one multiplex within a 2.5 km radius, which the industry goes by.

Mumbai, which has 20 multiplexes today, can accommodate 40 multiplexes, believes Shravan Shroff, managing director, Shringar Cinemas.

Second, movies hall occupancy rates have traditionally been higher in cities like Bangalore, Kolkata, Pune and Chandigarh compared to Mumbai.

Third, “The propensity to consume is higher in Bangalore and consequently the occupancy rates should be higher in Bangalore,” said Shroff. Bangalore also has the advantage of being a multi-lingual city which ensures a higher occupancy rate. The multiplexes in the city have been seeing occupancies in the range of 80 per cent.

Shringar is also setting up a multiplex at the Public Utility Building (Netaji Subhash Chandra Bose Tower) where once stood the Symphony, which had a 1,000 seats theatre.

This will be turned into a 550-seater. In addition to that, it will have a 1,350-seater multiplex at the upcoming Sigma Mall on the Outer Ring Road. It costs Shringar Rs 80,000 on one seat.

But firms will have to work to get the additional customers for which there is a potential. With Bangalore having a reputation of a city with more evolved customers, who prefer convenience, multiplexes will have to provide quick and easy service, even while buying a ticket.

This year Shringar expects to increase its occupancy as it is putting up more sites outside Mumbai, he added.

To differentiate itself from others, Shringar will be the first multiplex to offer recliners for couples and family. “This is there abroad,” adds Shroff.

Shringar saw a topline of Rs 47.52 crore for the first half of ‘07-’08 and a PAT of Rs 9.23 crore. For fiscal 2006-07, it recorded a topline of Rs 98.30 crore, up from Rs 61.37 crore in the previous year, and a bottomline of Rs 9.75 crore agaisnt the earlier Rs 2.90 crore.