Videocon plans to sign a joint venture with a US-based entertainment major for setting up multiplexes and entertainment complexes in major cities. The company plans to invest up to Rs 600 crore in its entertainment industry foray, with another Rs 600 crore envisaged as equity investment from the joint venture partner, and would like to take 50 per cent equity in the proposed JV.
The Rs 600 crore investment being envisaged will mainly comprise real estate owned by Videocon in cities like Mumbai, Kolkata, Ahemdabad, Delhi. The investment in this proposed joint venture will be made through this property; in case this is not enough, company will infuse more funds.
The proposed multiplexes will have nine screens and the projects will take anywhere between one and a half to two years to become operational.
Videocon’s plan to enter the high-profile entertainment sector follows aborted attempts to foray into aviation and insurance.