Entertainment conglomerate Adlabs Films Ltd, part of the Reliance Anil Dhirubhai Ambani Group (R-ADAG), has entered into an agreement with Rave Entertainment to acquire the right to conduct cinema exhibition business at one operational multiplex in Kanpur and six more projects under implementation in NCR, Uttar Pradesh, Punjab and Haryana totalling 23 screens. This acquisition would increase Adlabs’ multiplex presence by five properties (17 screens) in the next four months.
Rave Entertainment Pvt. Ltd. (Rave), promoted by Sailesh Gupta of Jagran Group, owns and operates the brand ‘Rave Cinemas’ in Kanpur and has entered into license arrangement for operating cinemas at prominent retail locations in Noida and other centres in UP, Punjab and Haryana. Five of the seven properties are also entitled to entertainment tax exemptions.
This licence provides Adlabs quick access to the Delhi-UP territory, which contributes a sizeable 23 per cent to the all-India box-office. Adlabs' current screens stand at 62 and are set to increase substantially during the coming year.
Commenting on the arrangement, Manmohan Shetty, Chairman & MD, Adlabs Films, said, “Rave's properties are well managed and the projects under implementation are in carefully chosen strategic locations. Coupled with our own aggressive growth path, we are well on our way to becoming the market leader by July 2007. By end of March 2008, we will have a presence in 70 cities, spread over all significant film territories that contribute over 80 per cent to domestic box-office collections”.
Said Shailesh Gupta, Director, Rave Entertainment, “Rave will be able to leverage on the synergies of a national player with strong roots in the film industry.”
Adlabs recently declared impressive results for the 12-month period ending March 2007. It recorded a total income of Rs 348 crore (166 per cent growth over previous year), and net profit of Rs 73 crore (158 per cent growth).