Mexico’s Cinepolis,Big Cinemas mull JV

According to sources,the alliance could be either Cinepolis buying several key properties of BIG Cinemas or getting into a tie-up.

Details of the talks,however,could not be ascertained as a Reliance Group spokesperson declined to comment,while Cinepolis official was not available.

Cinepolis that entered India in 2008,currently operates 32 screens at Amritsar,Patna,Thane,Ahmedabad,Surat and Bangalore,has been looking to strengthen its presence in the country. Worldwide the firm operates 2,801 screens.

On the other hand,Reliance MediaWorks that controls Big Cinemas had announced earlier this year that it was in the process of dividing its cinema exhibition,and film and media services into separate 100 per cent subsidiaries.

“The subsidiarisation step is a precursor to invite strategic and private equity investors,who have expressed a keen interest in investing in specific businesses,” Reliance MediaWorks (RMW) had said in a statement in January.

RMW also provides other services such as visual effects,motion picture processing,studio facilities,film restoration,equipment rentals,animation and post-production.

As per industry estimates,about Rs 2-2.5 crore are required to set up one cinema exhibition screen.

BIG Cinemas is India’s largest cinema chain with over 550 screens spread across India,US,Malaysia,Nepal and Netherlands. In India RMW operates 260 screens spread over 103 theaters and 80 cities.

“BIG Cinemas accounts for 10 to 15 per cent of Indian box office contributions of big ticket films,” according to RMW’s official website.

RMW’s scrips closed at Rs 83.95 per share,up 1.70 per cent from the previous close on the BSE.

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