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Tag: PSTL

  • Pyramid Saimira board clears plans to raise $100 million via FCCB

    Pyramid Saimira board clears plans to raise $100 million via FCCB

    MUMBAI: Pyramid Saimira Theatre’s (PSTL) board has approved plans to raise $100 million through FCCB. It has also given the nod to float special purpose vehicles (SPV) along with developers of realty companies for setting up 100 malls with multiplexes in South India. A further 100 malls with multiplexes would be set up in the rest of India.

    PSTL will invest up to 50 per cent shareholding in the respective SPVs that are to be formed. Nowhere in these JVs will Pyramid’s holding be below 26 per cent.
    The SPV will create approximately 60 million square feet with an investment of Rs 20 billion spread over four years. The board also discussed and approved the increase in FII (foreign institutional investment) limit to 40 per cent of the paid up capital of the company.

    The agreement signed regarding the formation of a Malaysian joint venture company, Pyramid Saimira Theatre Chain (Malysia) Sdn. Bhd, has been cleared. The Board also approved RM 100 million investment by PSTL into that JV company.

    The Malaysian JV plans to construct 100 new entertainment centres/malls, create a real estate investment trust to acquire the above said assets and also make Pyramid Saimira Theatre Chain (Malaysia) Sdn.Bhd as an asset management company to manage assets created, which is approximately of the value of $ 1 billion. The board deliberated and approved Malaysian JV Company’s plan to acquire an existing theatre chain company and an existing content distribution company in Malaysia for a faster ramp up of operations.

    The board also discussed and approved up to $ 25 million investment into a content fund as a sponsorer. PSTL can also incur consequent expenditure in raising $ 150 million content fund in India and abroad.

    PSTL proposes to create a content distribution and theatre chain in London and North American market. The board authorized managing director PS Saminathan for negotiation and decision with the existing content distributors in London and North American market.

  • Pyramid Saimira in expansion mode, plans Hindi foray

    Pyramid Saimira in expansion mode, plans Hindi foray

    MUMBAI: The Chennai-based digital theatre chain company Pyramid Saimira Theatre Limited (PSTL) has unveiled its expansion plans.

    To start with, the company is planning to enter the Hindi speaking markets by the third quarter of 2006. Reportedly, the investment for the expansion is pegged at Rs 3.5 billion.

    PSTL, which is operating about 100 theatres, will increase the tally to 400 by the end of FY07 fiscal end through its Networked Mega Digital Theatre Chain project, according to an official release.

    “Pyramid Saimira is currently operating a theatre chain of more than 100 theatres, which we plan to increase to 400 by the financial year end 2007. From the third quarter of 2006, we plan to make a foray into Hindi speaking markets and add one screen a day also in North India. By the turn of this decade, the company plans to manage and operate on its own about 2000 screens and in addition have around 4000 screens as franchisee screens across India,” says PSTL MD Saminathan.

    The company has projected a top line growth of Rs 8 billion (USD 178 million) by 2010, which represents 6 per cent of the industry, adds the release.

    Pyramid has technical support tie-ups with Tata Net for communication technology, Prasad Labs for conversion of films into digital, Delta Electronics as well as Arasor Technology for projectors, and Real Image for software solution providers.

    Saminathan further adds that Pyramid is setting up an integrated Network Operating Center (NOC), which will convert films into Digital, transmit these films using satellite medium to various theatres across the country in a secured encryption mode.

    Using Digital Rights Management, the company will exhibit the films and other contents in digital mode without physical film prints. This will bring about a saving of Rs 60,000 to Rs 70,000 per movie per theatre and approximately save Rs 2 million per theatre per annum.

    PSTL chairman V Natarajan says, “Digital Cinema is not about replacing an ordinary projector with a digital projector. Through a change in technology we bring a major change in relationship and structure of the exhibition industry as a whole. Just like the hotel industry, exhibition industry will see the emergence of separation of ownership and management especially on a professional note.”

    By converting existing theatres into digital, PSTL expects to function as the delivery medium for entertainment and educational content, according to the release.