Punditz Presents…

Youplex
… The Young Multiplex

Executive Summary
Prasads is an established brand in the film industry, especially in the exhibition sector with it’s 5 screen multiplex including the Imax in Hyderabad. Prasads is looking to leverage the brand equity by expanding into the film exhibition

Brand Prasads

There is an ever growing potential for cinema screens in India. On the demand side, the income levels are rising and so is people’s willingness to spend on entertainment while on the supply side, film and real estate industries are growing fast

Potential for Screens

Punditz is an entertainment consultancy firm, established by a group of experts in entertainment, finance and turnkey project execution. Having identified the potential for more screens, especially in the class B and C towns of AP, Punditz designed a Youplex model, a multiplex experience at a low cost .

Punditz Youplex Model

Punditz has approached Prasads for extending their support for developing the Youplex model and take the multiplex experience to Tier II and III cities.

Punditz Youplex in association with Prasads

Preamble – Indian Screen
scenario
In India, Domestic box-office dominates the total film revenues at more than 70%, as compared to 11% in Hollywood. Global Stage – Comparison: India ranks No. 1 in world for the number of films produced (1325 in 2008) and in the number of cinema admissions (3.48 Billion in 2009). However, it stands No. 3 in the no. of screens (11,000 way below USA’s 39,000 and China’s 35,000) and the lowest Screen Density (12 screens per million as against 27 in China and Japan, 59 in UK and 117 in USA). Another interesting fact suggests that India stands 1st in ‘time taken to earn a movie ticket’ at 16 minutes versus 24 Minutes in US and 48 Minutes in Australia against a world average of 56 minutes. Taking Indian per capita income into consideration, this shows how low the ATP (Average ticket price) in India is. The other major drive of technology in exhibition has been 3D. With many filmmakers announcing the conversion of earlier 2D blockbusters into 3D, the opportunity for this projection has increased.

Preamble – Potential for
growth in AP
Potential for new screens across AP with the same ambience, yet at a low ticket and popcorn prices Ever-growing demand for screens with film producers’ changing stance from ‘Long run – Less screens’ to ‘More screens – Steal the Cream’ model, thus reducing the shelf life of the movie to 1-2 weeks Digitization of projection reducing the additional cost of prints to the distributor, thus helping him take a chance on the number of screens Flexibility of timings, number of shows etc in Multiplexes has opened up options for filmmakers and thus increase in demand (Eg., RACE was screened for 31 shows on a single day in a Mumbai multiplex) B and C towns have grown in potential but the multiplex experience not reaching them yet, owing to the high ticket prices Alternate content in the form of educational (Both academic and IQ related) and sports like IPL, FIFA world cup increasing the demand

Youplex – The
Model
A miniature version of a multiplex… Not only in size, number of screens and seats but also in the price – of tickets, parking, soda and popcorn (Proposed Ticket price - Rs. 30).

The rundown is only on price but not quality
A 2 screen Youplex with a maximum of 100 seats per screen, two floors of shopping and one basement for parking, terrace for event management Expected land requirement – 1000 / 2000 Sq. Yards Total Construction space – About 25000 Sft. (Including space for 2 screens @ 2,500 Sft.) High end technical equipment including sound, projection etc, to be connected via satellite when the numbers are large enough Located in B towns a la Rajahmundry, Warangal, Kurnool etc., Control on theatre level piracy Top brands, gaming and cuisine

Youplex – The
Proposal
Punditz proposes to establish Youplexes with the help of Prasads pan South India starting with the state of AP. Establish a Franchise model in which the owner of a land in identified B and C towns is awarded the franchise The basic shell structure will be constructed for the shopping mall along with 2 halls with given specifications for the screens to be erected Prasads will provide with the entire equipment needed for the cinema to be established viz., Projection, screens, sound and light, seating and other interiors The franchisee will advertise locally to fill in the remaining shops of the mall to earn back their costs The screens are used for movie screening for select hours only. The remaining hours are used for alternate content like edutainment, conferencing, short films etc. Punditz will organize the entire exercise turnkey plus help reach the niche markets like the education and corporate sectors

Prasads …The
trusted Name
Founded in 1956 by ace filmmaker Dr. LV Prasad, Prasad Group is the largest provider of integrated film Lab, Post production and SFX services and Outdoor equipment in South India 18 times winner of the prestigious national award for the best film laboratory Production facilities and offices across India, Singapore and Hollywood. Established South India’s first IMAX theatre in Hyderabad in 2005 with the world’s largest 3D-IMAX screen. Established PXD (Prasad Xtreme Digital Cinema Network) with a view to cater to digital cinema services like mastering, distribution and exhibition Prasads plans to expand their presence in film exhibition by providing digital projection systems in place of celluloid projectors. For this, PXD has tied up with Barco, Germany for supply of digital film projection systems in India Prasads also has plans to resume their film production activities thus establishing their presence in the entire value chain system.

Punditz Factor
Youplex is the brainchild of Punditz and we propose to take up the project in collaboration with Prasads on a turnkey basis, on a franchise model. Punditz is a group of corporate professionals experienced in project management in various industries viz., Entertainment, Education, IT and finance Core team experienced in turnkey project management and handled projects worth a few million USD with team sizes of over hundred people. Expertise in project financing both debt and equity Organized several events to yuppies and collegiates and thus have a good connectivity with both these groups Basically from Movie industry with good relations with film industry bigwigs and thus has an in-depth understanding of the industry operations and distribution process

Deliverables
Land Owner:

Punditz

Land of 1000 – 2000 Sq Willingness to participate in

Turnkey design and execution in - Identifying the franchisees, - Arranging for project funding, - Identifying and developing niche

Yds

consultation with Prasads in:

the project on franchise model for the proposed franchisee term

Land Owner Punditz Prasad s

markets , conducting campaigns to reach them - Content Mgt – Design and procure new and alternate content, - Event management including film festivals etc for the franchise period

Willingness to actively

involve in all local issues

Prasads:

Branding the project under

franchise model starting with the identifying process

Guiding the franchisee manpower on the daily operations Revenue management on behalf of Relationship Mgt – with content providers Networking with college students to help

Provide the franchise with

the equipment and technical know-how

Prasads

Support the franchise with a

regular flow of content

and prospective clients

Win - Win
Prasads:
• Leverage the brand equity and establish their presence in the entire value chain of film industry • Help technology and multiplex experience reach the small towns • Create an exclusive market for the new products in their folder, the digital projection systems • Establish the perfect platform for their plans to produce content • Transparent relation • Create a longstanding value with high footfalls which can be effectively utilized by him for other business avenues. • Prestige associated to the co-owner of a multiplex with Prasads brand name • Project becomes a focal point for the film industry in the locality involving the film stars in all their dos. •Partnership with the most trusted name in the film industry builds a credibility •As the designer of concept Youplex, enjoy the fruits of success in a young and niche market • Establish name as a one stop shop for all entertainment needs • Help new and alternate content like short films, foreign films reach the students community • Even give a fillip to the local talent by event management

Franchisee

Punditz

Financials Model
Income comes from
a.

Theatre collections, which will be deducted by entertainment tax and distributor’s share Parking, Popcorn and other eatables Screening of education or other alternate content, conferencing etc Real estate revenues – lease of retail space

b.

c.

d.

Income from the sources a, b and c (From screens) will be shared by Prasads and the franchisee. Income from source ‘d’ (Real estate) is entirely credited to the franchisee. In case Prasads takes up a cost in the construction / land, it will be shared by both pro-rata. Costs include
a.

Development and construction of structure Equipment needed for screens including interiors Marketing & Advertising Manpower Management Fees

b.

c.

d.

e.

Costs a will be entirely born by the franchisee through financing by banker. Costs b will be taken by Prasads (Thru Exim Finance). All the others will be part of working capital requirements. All the financing processes will be managed by Punditz.

Thank You

Raj Madiraju
Director 91 98488 03132 raj@punditzconsultants.com

Punditz Consultants Pvt. Ltd., 302, NCL Tungabhadra Towers, Nizampet Road, Kukatpally, HYDERABAD

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