INDIA BUSINESS WORLD - August 1st - August 31st - 2008
CINEMAX TIES UP WITH VIP FOR FILM PRODUCTION
AFTER setting foot in the distribution arena with Kismat Konnection, multiplex chain Cinemax India is getting into film production. It has taken the first step towards this by signing a co-production agreement with Vinay Choksi's VIP Enterprises. It will invest invest Rs 100 crore in next two years.
With all its competitors making moves towards being an integrated film company, Cinemax is also compelled to move in that direction, says an analyst. "We will look at doing co-productions for about two years and after that will move onto independent productions", says Jitendra Mehta, group-chief financial officer of Kanakia Group, which owns the multiplex chain.
Cinemax is looking to co-produce about four medium budget films a year. The company is making a late entry in this sphere as compared to other multiplex chains - Adlabs and PVR cinemas- which already have a significant presence in this sphere. Adlabs Films co-produced the recent blockbuster Singh is Kinng and PVR co-produced Taare Zameen Par with Aamir Khan.
Cinemax acquired distribution rights for the recent Kismat Konnection and Singh is Kinng. The slump in the exhibition business in the second quarter of this year due to lack of good releases also forced Cinemax to get into the film production business, opined another analyst.
"We would have gone down this road eventually, but yes the lull in the multiplex business did trigger our entry into the distribution and production. We cannot rely only on the exhibition business as it is inconsistent. Now we’re looking at being a comprehensive film company," says Mr Mehta.
Cinemax inaugurated its first cinema in Rajkot. The multiplex chain is present in 21 locations in India with 62 screens and is looking to reach a target of 90 screens by the end of this year and 300 screens by the end of 2010.
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