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Tag: Pyramid Saimira

  • Dr Narayan joins Atharva Infotainment as partner and CEO

    Dr Narayan joins Atharva Infotainment as partner and CEO

    MUMBAI: Dr.Vikramaditya Narayan has joined Atharva Infotainment as partner and CEO.

    Earlier Narayan was the CEO of Pyramid Saimira and also served Eros International as its vice president looking after the company’s overall business. Narayan is a Ph.D in international business who also holds a doctorate in Yoga Psychology from International Yoga Fellowship, Munger, Bihar.

    Atharva Infotainment is a fully integrated, broad-based entertainment & media company in creation, production, distribution, licensing and marketing of films across all current and emerging media and platforms.

    Speaking on Narayan’s joining Atharva, Atharva Industries chairman Anil Rai said, “Our clients growth potential by providing specialised marketing services to expand their brand. Narayan will introduce entertainment properties as part of the marketing mix, secure celebrity endorsement deals and manage large events."

    An IFTA (Independent Film & Television Alliance) member, Atharva Infotainment develops, finances and produces its own productions both in films and events. It is a full service production and post production company with its own facilities.

    Atharva Infotainment has offices in Mumbai and New Delhi and affiliated offices in Dubai, London and Hong Kong. The company is an international and domestic distributor of all entertainment products.

  • Swiss Finance Corporation holds 6 per cent in Pyramid Saimira

    Swiss Finance Corporation holds 6 per cent in Pyramid Saimira

    MUMBAI: Swiss Finance Corporation Mauritius Ltd. has taken its total holding in Chennai-based Pyramid Saimira Theatre to 5.99 per cent after buying 775,000 shares on 2 March.

    The purchase of 2.74 per cent equity in Pyramid Saimira Theatre was made through the open market. Swiss Finance Corporation had earlier held 919,315 shares, or 3.25 per cent, in Pyramid.

    The scrip fell five per cent on the BSE to end today’s trading at Rs 255.70.

  • Pyramid Saimira, Moser Baer in deal for home video market

    Pyramid Saimira, Moser Baer in deal for home video market

    MUMBAI: Cinema chain operator Pyramid Saimira Theatre has entered into a strategic alliance with Moser Baer India for exploiting revenues from the home video market.

    Under the arrangement, Moser Baer’s range of home video titles will be available at all the theatres owned or managed by Pyramid Saimira. “The space cost will be taken care by us while Moser Baer will spend on furnishing the shops where the home video products will be sold. They will be able to reach out to more consumers through this retail chain,” says Pyramid Saimira Theatre managing director PS Saminathan.

    Pyramid Saimira will also allow its new films for Moser Baer to release in the home video format after a short window period. The plan is to release 100 films in South India across the country. Moser Baer will kick off by releasing Pyramid’s new Tamil film Mozhi (released on 23 February). “The window period will be drastically reduced and our films can be available on Moser Baer’s home video after one month of theatrical release. We believe we can get huge volumes as the DVDs are to be priced at Rs 34,” says Saminathan.

    Adds Moser Baer CEO, entertainment business, Harish Dayani, “This strategic tie up offers an excellent opportunity to increase our retail presence and availability. We are delighted that Pyramid Saimira Theatre is going to offer their new Tamil film content in home video format for the first time within a short period of releasing the film in the theatre.”

    The profit will be split equally between the two companies. This will include revenue generated from advertisement in VCDs and DVDs. The availability of DVDs at such low prices is aimed at killing the piracy market while also expanding the home video segment.

    Pyramid Saimira has also agreed to release films produced or distributed by Moser Baer in its theatres. Currently Pyramid has 255 screens in 225 locations.

    “Under the strategic alliance if we manage to generate volumes in the home video segment, we hope to add Rs 500 million to our bottomline every year without any increase in costs. While we take the content risk, they run the expenses for production of DVDs,” says Saminathan.

  • 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 to form JV for 100 malls, plans to raise Rs 4 billion

    Pyramid Saimira to form JV for 100 malls, plans to raise Rs 4 billion

    MUMBAI: Chennai-based theatre chain company Pyramid Saimira will enter into a 40:60 joint venture with a leading real estate company for setting up 100 malls entailing an investment of Rs 60 billion.

    The buzz is that Pyramid will sign the deal with IVRCL Infrastructure and Projects Ltd. “We are in talks with three leading real estate developers including IVRCL but haven’t concluded anything yet. All the three are listed companies,” says Pyramid Saimira Theatre Ltd. managing director PS Saminathan.

    Pyramid Saimira will raise around Rs 4 billion through a foreign currency convertible bond (FCCB) or a qualified institutional placement (QIP) as its share of funding for the project. “We could even go for a mix of both FCCB and QIP. We have no debt in the company and can leverage our cash balance. The equity dilution will be around 5-6 per cent,” says Saminathan.

    Pyramid will set up a special purpose vehicle for the project. The company has identified 700 locations in South India, out of which 200 it has found feasible for sustaining a multiplex or mall. In West Bengal it will have 15 locations for its malls and multiplexes, four of which will be in Kolkata. “Every location should be able to generate Rs 500 million from the second year of operations for it to be viable,” says Saminathan.

    The plan is to have 300 screens through this venture. The malls, covering 20-25 million square feet of space, will be spread across the southern states of India and West Bengal. “We will have 50 per cent of the malls dedicated for the entertainment sector,” says Saminathan.

  • Pyramid Saimira plans Rs 3 billion film funding, ties up with banks

    Pyramid Saimira plans Rs 3 billion film funding, ties up with banks

    MUMBAI: Financial institutions are structuring film financing in innovative ways. Chennai-based cinema chain operator Pyramid Saimira Theatre Ltd has tied up with banks, an insurance company and a film completion bond firm to provide an annual corpus of Rs 3 billion for funding film producers.

    IDBI Bank and HDFC have taken the lead and the guarantees from Infinity Film Completion Services (IFCS) will be re-insured by General Insurance Corporation (GIC). IFCS is a division of Infinity India Advisors Pvt Ltd.
    Pyramid Saimira plans to produce 25 movies through this route. “Our company will act as the guarantor to the banks for funding the producers. We will own all rights of exploitation including theatrical, satellite TV and international. This will provide a content pipeline of 25 films for our theatres. As we are also in film distribution, this will complete the value chain in the movie business,” says Pyramid Saimira managing director PS Saminathan.

    Pyramid has entered into an MOU with IFCS which will issue the completion guarantee for films to be procured by the company in the languages of Tamil, Telugu, Kannada and Malayalam. These guarantees are fully re-insured by GIC. This agreement is a major step towards creation of film content supply chain for us and in effect indirectly funds close to Rs 3 billion of working capital as off balance sheet funding,” says Saminathan.

    The company will, thus, be able to build of library of movies while feeding the supply chain to the theatres and the distribution business. “Besides, film producers will get access to cheaper and organised finance. The banks will be charging around 14 per cent interest as against the unorganised charge of 40 per cent,” says Saminathan.

    Pyramid Saimira recently raised Rs 844.4 million through a public float to part-finance its expansion plans. This included refurbishing theatres after taking them on long term lease and installing digital systems of delivery.

  • Cinemax sets IPO price band at Rs 135-155

    Cinemax sets IPO price band at Rs 135-155

    MUMBAI: Cinemax India Ltd, which runs a chain of exhibition theatres, has set a price band of Rs 135 to Rs 155 for its forthcoming 8.9 million-share initial public offer (IPO).

    The issue, which constitutes 31.86 per cent of the fully diluted share capital of the company, will enable Cinemax to raise Rs 1.38 billion at the top end of its price band.
    “We will be using the IPO proceeds to widen our presence from 33 screens in 10 properties to 141 screens at 42 locations by FY09. We will have a pan India presence, though our focus will be in strengthening our position in the northern and western regions of the country. We currently have a presence in Maharashtra,” Cinemax chairman Rasesh Kanakia said at a press conference.

    The company owns 8 of its properties while two are leased. “This is a major differentiator from the other theatre operators. But moving forward we would look at the rental model to ramp up the numbers. Our locations are at high catchment areas in affluent and middle class neighbourhoods,” he said. Inox is the other theatre exhibitor which has a predominantly ownership model.

    Cinemax plans to set up a eight-screen multiplex in Chandigarh and have seven gaming zones at its new locations. The company earns 76 per cent of its revenues from ticket sales and five per cent from advertisements, Kanakia said, adding that the company enjoyed leadership position in Mumbai with a 33 per cent market share.

    For the first half of the current fiscal, Cinemax posted a revenue of Rs 347.32 million and a net profit of Rs 21.39 million. In the previous year, it reported a turnover of Rs 438.6 million while its net profit stood at Rs 75.05 million. The company had 2.73 million patrons in the first half of this fiscal as against 3.67 million in FY06.

    Pyramid Saimira Theatre Ltd, which is also into the cinema exhibition business, recently raised Rs 844.4 million through an IPO and ended trading at the BSE on Wednesday at Rs 189.95.

  • Pyramid Saimira to raise Rs 844 million via IPO, sets price band at Rs 88-100

    Pyramid Saimira to raise Rs 844 million via IPO, sets price band at Rs 88-100

    MUMBAI: Chennai-based cinema chain Pyramid Saimira plans to raise Rs 844.4 million through a public float to part-finance its expansion plans. This includes refurbishing theatres after taking them on long term lease and installing digital systems of delivery.

    The issue, which opens on 11 December and closes on 18 December, will have a price band of Rs 88 to Rs 100 per equity share of Rs 10 each. The initial public offering (IPO) will be entirely through the book building process.The total fund requirement is estimated at Rs 1.11 billion. The funding will be met through pre-issue capital and internal accruals of Rs 267.5 million, in addition to the IPO.

    For refurbishing the theatres, the company plans to invest Rs 368 million while digitalisation process will absorb Rs 241.4 million. The other big investment of Rs 203.4 million will be towards recoverable security deposit with theatres and multiplexes.

    The company plans to tie up with 120 theatres in A locations and 235 threatres in B and C locations by March 2007. The average length of the lease varies from five to 15 years with the option to extend it.

    Pyramid Saimira has tied up with Delta Electronics, Taiwan, for digital projectors, Real Image Media for video servers and Tatanet for the utilisation of their broadband VSAT infrastructure. Arasor Inc, USA, will provide for next generation laser projection technology, Valuable Media for end-to-end digital cinema solution on pay-per-use basis in 1000 Pyramid theatrical locations and Prasad Labs for digital conversion.

    With focus on tier II cities, Pyramid plans to have a pan India presence. “We are currently present in the southern states. But we are soon spreading out to Punjab, Haryana and Rajasthan,” says Pyramid Saimira Theatre managing director PS Saminathan. The company has tied up with Spirit Global Constructions which shall construct 60 propoerties in Punjab while Swatantra Land & Finance shall offer 22 properties at Haryana and 20 properties at Rajasthan.

    “We plan to have over 2000 screens in 1550 locations across India with 58.75 million sq. ft. under operational management by 2010,” says Saminathan. The company currently has 148 screens operational with over 1.8 million sq. ft.

    The company is close to signing a deal with Chinese government to run 7,000 theatres on the mainland. Bennett Coleman and Company Ltd (BCCL), publishers of The Times of India and The Economic Times, has bought a small stake in the company.

    Among the promoters of Pyramid Saimira include noted Tamil film producer V Natarajan and Saminathan who owned a cable TV network in parts of Tamil Nadu.

  • UFO Moviez & Pyramid-Saimira join hands to set up digital cinema chain

    UFO Moviez & Pyramid-Saimira join hands to set up digital cinema chain

    MUMBAI: Digital cinema network UFO Moviez and the Chennai based Pyramid Saimira Theatres Limited (PSTL) have got together for the digitisation of 1000 theatres over the next three years all over India.

    UFO Moviez shall be providing end to end digital cinema solutions for the theatres in the Pyramid Saimira chain at a cost of Rs 1.5 billion.

    Commenting on the deal, UFO India executive director & CEO Sanjay Gaikwad said, “We anticipate that this tie up with Pyramid group will chart the way for the digital revolution happening in the field of cinema exhibition. A single integrated chain of 1000 digital cinemas all over India will provide producers and distributors a unique opportunity for saturated wide spread release in the week of release itself. Worldwide, there is tremendous excitement about this technology which is being hailed as the next great leap in film distribution and exhibition”.

    Elaborating on the agreement, UFO India’s director Usman Fayaz adds, “Pyramid Saimira has tremendous presence in the southern states and are now looking at expanding to other territories in India. This agreement is indeed a step forward in our future plans of creating a truly global network and becoming the world’s undisputed leaders in digital cinema network.”

    “The states of Andhra Pradesh, Tamil Nadu, Kerala and Karnataka between themselves have 59 per cent of the cinema halls in India. We expect at least 50 per cent of our conversions to UFO Digital system to come from the south market. Unlike the hindi speaking states, the four southern states are highly compartmentalized as regards film viewing and exhibition in terms of language and we expect a high density of theatres in these states.”

    States PSTL MD P S Saminathan, “PSTL plans to have 2000 screens under its full operation management spread across 1550 locations by the year 2009-2010. The agreement with UFO enables PSTL to reach this target faster since it frees PSTL capital from Plant & Machinery and enables PSTL to lock in more points of presence faster”.

  • 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.