SRS Cinemas turns arc lights on S India

SRS Cinemas, the movie exhibition vertical of the Rs 6,000-crore SRS Group, is planning to expand its footprint in South India, having already established a formidable bastion in the North.

At present, the company’s chain of premium multiplexes involves 20 properties with 57 screens and 14,750 seats, across 15 cities through the states of Punjab, Uttar Pradesh, Bihar, Haryana, Rajasthan, and Himachal Pradesh.

“Since we already enjoy an established presence in the North, we notice potential in the South that we could tap. There is a huge rage among people in South India about films, besides knowledge and awareness,” Tinku Singh, Group President and Chief Strategy Officer of SRS Group, told Deccan Herald.

As part of its South Indian foray, SRS Cinemas plans to open around 50 screens (roughly 11,000 seats), at an average of four screens per property, beginning from 2017. The company is looking at all five states in the region to locate the best markets.

“Currently, we are in talks with developers, to see where we can house our multiplexes (in malls). We are investing around Rs 45 crore - Rs 60 crore as seed investment towards expansion, which has been sought from internal accruals, and debt,” Singh said, hinting at even screen acquisitions in the South.

Smaller towns
The company, whose primary specialisation involves eyeing potential business pockets in the smaller towns and cities of its operational markets, would be specially focusing on tier-II, tier-III and tier-IV cities in the south.

Tinku Singh clarified that though acquisitions have been happening in the space, and though the company itself has been approached by suitors, SRS Cinemas is not available for sale, and is committed to continue delighting its patrons.

In all, the company plans to start 100 more screens across the country by the next calendar year. SRS Cinemas has enjoyed an average occupancy of 35 per cent, all-India, with a turnover of around Rs 100 crore last year, and a CAGR of 12-15 per cent.