KOLKATA: HDIL Entertainment, the 100 per cent subsidiary
of the Mumbai-based real estate company, Housing Development
and Infrastructure (HDIL), plans to have 70 multi-screen plexes
pan India in the next couple of years. For setting up the
cinema screens, the company has earmarked an investment of
Rs 55 crore. The company's multiplexes operate under the brand
name - Broadway.
Broadway CEO Mukesh Gupta is optimistic that both West
will be operational before Durga Puja
HDIL Entertainment which reported a turnover of Rs 45 crore
in the last fiscal of 2012-13, is aiming at notching up Rs
75 crore - Rs 80 crore by the end of the current fiscal 2013-14.
In West Bengal, the company has signed a deal with mall developers
for a four-screen plex Broadway at Asansol and three-screen
plex at Durgapur.
It is learnt that it will go for a lease agreement with Bengal
Shristi for the Duragapur screens. Apart from this, it is
looking at Burdwan and central Kolkata for expansion and Guwahati
would be the preferred next destination in the eastern region.
"Both the West Bengal plexes are slated to be operational
before Durga Puja," HDIL Broadway CEO Mukesh Gupta told
"By the month of October 2013, we plan to start 14 screens
pan India and the total number of screens would be 35 by this
year end. By the end of next year 2014, we are aiming at 70
multi-screen plexes," he highlights.
Of the Rs 55 crore investment needed, Rs 20 crore will be
from internal accruals while a bank loan would account for
Rs 35 crore, says Gupta.
Broadway has around 14 operational plexes in Mumbai and four
each in Kolkata and Indore. "We plan to open four screens
at Kolkata, three in Delhi and two more in Mumbai by the end
of the year," the CEO says.
It is interesting to note that two years ago the company
planned to open around 120 multi-screen plexes by 2016 using
the ownership model at an investment of Rs 450-500 crore.
"Seeing the slow growth and not so conducive economic
sentiment, we are looking at 120 screens in next three years
to four years on a lease basis," explains Gupta.
HDIL Broadway has a four- screen multiplex, spread over 30,000
square feet and with a sitting capacity of 799 people in the
city of Kolkata at present. Tickets are priced between Rs
Talking about the occupancy rate in Kolkata, he said the
average occupancy rate is 48-52 per cent while "there
are days like last week when the cinema halls were flooded
with good movies, it was around 78 per cent also," he
"We have capitalised on the Salt Lake late-night movie-watching
crowd and also the EM Bypass, Phoolbagan and Kankurgachi cinegoers
in Kolkata," reveals Gupta.
Without giving much detail, Gupta said Broadway would soon
open in central Kolkata.
HDIL Entertainment is keen to tap the south market also for
Broadway expansion, says Gupta.
HDIL, the parent of HDIL Entertainment, was in the news recently
for not paying interest arrears on a loan taken by it from
Indiabulls Housing Finance, which it later paid up. Its share
price dropped on the bad press.
After a long consolidation of one and a half years, the HDIL
share price broke out of the range, says Dhanpurna Commodities
research head Puneet Rathi. "Falling below Rs 100 levels
in January 2013, reflect a continuation of down trend in stock.
After touching a bottom of Rs 26.1 on 6 August 2013 it bounced
back on low volume," he said.
It is currently trading in the Rs 30 plus range.
On Wednesday afternoon, the scrip was trading at Rs 32.85,
up 0.61 per cent.