ACKNOWLEDGEMENT

The present work is an effort to throw some light on PVR Cinemas: Marketing Strategy . The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledge the encouragement and guidance Received by ..who helped and supported me during the course, for completion of my thesis.

CHAPTERS:
I. II. Acknowledgement....2 Entertainment Industry Overview.3

a. Film and Exhibition Industry Overview.4 b. PEST Analysis....10

III. IV.

PVR Cinemas: About the Company....19 SWOT Analysis.26

V. VI.

Porters Five Forces Model 27 Ansoff Matrix...36

VII.

STP Analysis40

VIII. Marketing Mix: 7 Ps...44

IX. X.

BCG Matrix60 Recommendations...61

ENTERTAINMENT INDUSTRY
Over the last decade, India has registered the fastest growth among major democracies and is now the fourth largest economy in terms of purchasing power parity. Over the years, spending power has been steadily increasing in India. On an average, 30-40 million people are joining the middle class every year. The consumption spending is rising due to increasing disposable incomes on account of sustained growth in income levels and reduction in personal income tax over the last decade. The Indian Entertainment Industry is expected to significantly benefit from this fast economic growth, as this cyclically sensitive industry grows faster when the economy is expanding. When incomes rise, proportionately more resources get spent on leisure and entertainment than on necessities.

Indian Film and Exhibition Industry Overview

The Indian film industry is the largest film industry in the world in terms of the number of films produced and admissions each year. The Indian film industry revenue for 2004 was estimated at Rs. 59 billion (US$1.3 billion), which was less than 1% of global film industry revenue and a fraction of the U.S. film industry revenue, which was US$9.49 Billion in 2003. The pie chart below sets forth the percentage contribution of various revenue sources to the total revenue of the Indian film industry in 2004.

Although over 90 years old, the Indian film industry was only accorded the status of an industry in 2000. Consequently, it is only during the last five years that the Indian film industry has been able to attract financing from banks, financial institutions, private equity investors and corporations. Prior to 2000, the industry was almost solely reliant on private and largely individual financing. Although corporatisation of the film industry has started, the film industry is currently largely unorganized and fragmented. Going to the cinema is one of the most popular entertainment options in India. In 2004, the total admissions in cinemas in India were 3,100 million.The second largest number of admissions is in the United States, which had 1,500 million admissions in 2004.

The film industry comprises three sub sectors:

Film production, which involves the making of movies; Over 900 Indian produced films were released in 2004. Hindi films constituted the bulk of films produced in India closely followed by regional films in Telugu, Tamil, Kannada and Malyalam. Hindi films are the most popular films in India and account for over 40% of the total revenues of the Indian film industry. The majority of Hindi films are made in Mumbai, popularly referred to as "Bollywood". Around 30% of the films made in India generate 90% of the Indian film industry's revenue. Film distribution, which involves the distribution of movies to cinemas, television and video stores; The film distribution system in India is territory-based. The country is geographically divided into 14 distribution territories and film producers tend to sell distribution rights for each territory. Most film distributors in India are small businesses. This has resulted in the film industry being highly fragmented, with each territory having 50-75 distributors, while 810 distributors operate on an all India basis. A distributor generally sells its rights to sub distributors who cover certain sections in a territory Film distribution sector characteristics and trends In the recent past, some of the larger producers have vertically integrated into distribution, especially into overseas markets. A number of new entrants have entered the distribution business,

resulting in an increase in acquisition cost for distributors. Distributors are trying to lock in the content at a very early stage by financing film producers. Distributors are playing an increasing role in marketing of films. New films are being released in satellite/ video formats within a shorter period after theatrical release, thereby reducing the window for theatrical exploitation. New films are being released across a larger number of theaters with a large number of prints in order to maximize theatrical revenues in the shortest time period. New distribution formats, like digital distribution through DVD, are being implemented. The increasing size of the home video market is also expected to provide growth for the distribution sector. As of the end of 2004, over five million Indian households had a VHS or DVD player, an increase of 50% compared with the end of 2003. Increasing wealth should result in more Indian households owning a VHS or DVD player and expand the home viewing market. Film exhibition, which involves the exhibiting of movies in cinemas. The Indian film exhibition sector can be divided into two segments: single and double-screen cinemas and multiplex cinemas, i.e., a cinema complex with three screens or more. As of March 2005, there were approximately 12,000 cinemas in India of which 73 were multiplexes with a total of 276 screens. Indian Film Exhibition Sector The Indian film exhibition sector had revenues of Rs. 34 billion in 2004. Despite the higher number of tickets sold in India, the total reported box office revenue is significantly lower in India compared with the United States. This is primarily due to the fact that ticket prices are much lower in India, with an average of Rs. 15 . The lower ticket prices in India are due to lower income levels, especially in rural and semi urban parts of the country, and the lack of good quality cinemas. The average price of a ticket for a multiplex cinema is Rs. 75 - 85 but the number of screens in multiplexes represented only 2.3% of total screens in India as of March 2005. (Source: Yes Bank Report) An increase in the number of Multiplex screens should result in an increase in film exhibition revenues, so the opening of new Multiplexes represents a significant growth opportunity

for the industry. The total reported box office revenue in India is also lower because the amount of revenue collected at the box office is under reported due to the fragmented and non-transparent nature of the film exhibition sector. Inadequate Number of Screens In India, the number of screens per million of population is just 12 whereas the average in western countries is approximately 40.

Concentration of Cinemas in Southern India Southern India accounts for a majority of the cinemas in India. Andhra Pradesh has the most number of cinemas in India followed by Tamil Nadu, Kerala and Karnataka. Whilst Southern India accounts for the majority of all cinemas in India, as of March 31, 2005, only five out of 73 multiplex cinemas in India were in Southern India. Increase in disposable income in the hands of an ever expanding Indian middle class Multiplex Cinemas generally cater to middle and high income households. The emergence of the Indian middle class with greater earning power and a

higher disposable income is one of the key factors that will drive the growth of the Multiplex Cinema segment. The table below shows the growth in the number of middle and high income households in India. Because of Indias status as a good IT hub for outsourcing by U.S. companies, young Indians between 20 to 24 years old, who ordinarily wouldnt be able to find work easily, are finding jobs with call centers straight out of college. Now they have disposable income thats totally discretionary and about 20 to 30% higher than prevailing wages, which they are spending on books, movies, music, cell phones, food and brandname clothes

Economic
The Indian Entertainment Industry is one of the fastest growing sectors of the Indian economy riding on the economic growth and rising income levels that India has been experiencing in the past few years. The entertainment industry is expected to grow faster than GDP growth and consequently more spend is expected on leisure and entertainment. The film segment will ride on the growth of multiplexes and digital distribution formats. 18% year-on-year growth is expected in this segment. There are 73 multiplexes in India, with 276 screens and about 89,470 seats. The numbers are expected to increase to 135 multiplexes with more than 160,000 seats by the end of 2006. In India the multiplex business is modeled to the ones in developed countries. The main revenue stream is box-office collections from movies. Other revenue streams include rent from display systems, restaurant rentals, food

and beverage collections, product launch rentals and promotions by companies. In several cases the other revenue streams are often larger than box-office collections, but movies are the main pull of such complexes.

From 1999 to 2003, the average Indian household increased its spending on movies and theatre as a percentage of its disposable income from 1% to 4.6%. Organised retail boom A growth in consumption levels, changing lifestyles, the availability of quality real estate and significant investments in malls are expected to result in an increase in the size of the organized retail business in India. The organized retail market in India is expected to increase its share of the total retail market from 2% as of 2004 to reach 5-6% by the 2007. The number of malls in India is expected to increase from approximately 50 as of the end of 2004 to around 250 by the end of 2006. One of the key elements for the

success of a mall is its ability to drive footfalls consistently. Multiplexes are one of the anchor tenants in large format malls, as their presence increases footfalls by approximately 40-50%. The expected organized retail boom should result in a significant increase in the number of Multiplex Cinemas.

Social
Movie watching is becoming an experience more than just a casual outing with the family. The lines are blurring between watching a movie for entertainment and watching a movie for leisure. The movie experience goes much beyond just watching a film. The encouraging growth in the number of multiplexes is making the movie goers, especially in urban India, experience a new way of enjoying movies. Higher consumption spending and consequent changes in lifestyle are also spurring the growth of the Indian Entertainment sector. Since the late 90s distribution has become equally as important as production to the Indian movie industry. Multiplexes were the natural choice for distributing movies in large cities. Space was at a premium and several movies were competing for limited number of screens. Multiplexes not only increased the number of available screens, but also provided them with excellent acoustics and enhanced picture display. Increase in Number of High Grade Hindi Films Demand for a particular movie is generally driven by both its critical reviews and word of mouth from patrons. An increase in the average quantity of high grade Hindi films released per week should increase the total demand for movies, as these movies tend to be more popular. As shown in the table below, from 2001 until 2004, there was an increase 48% in the number of releases per week for high grade Hindi films.

Increasing corporatisation of the film production sector should result in an increase in the number of high quality films produced, which should increase demand for movies. In an increasingly corporate environment, unviable movies with weak scripts should find it difficult to garner funding. Consequently, although the average number of films produced annually in India is expected to fall from over 900 in 2004 to around 600 by 2010, the quality of the movies produced is expected to increase.

Political
The year 2004 also witnessed a change in the political scenario of the country with a positive impact on the regulatory scenario. A new set of policy makers are looking at this segment with a fresh perspective, which is a positive sign. On the other hand this does give rise to delayed policy decisions, a fact not favoured by all. Several state governments provided incentives to encourage the growth of multiplexes. A positive concession given to the cinema theatre industry in 2002/03 was the deduction of 50 to 100% of the profit earned by multiplexes that came to them in the next two to five years. The waiver was restricted to multiplexes, which were essentially in metropolitan cities, but the concession has been extended to smaller cities too. To boost the sector, the government has opened large parts of the sector to foreign direct investment (FDI). It allows 100 per cent FDI on automatic basis in the film industry with no entry level pre-conditions.

Entertainment tax benefits In the late 1980s various state governments imposed steep increases in entertainment taxes, which lead to a decrease in the profitability of cinemas.This adversely affected investment in cinemas and maintenance standards as cinema owners tried to reduce their costs, which lead to a fall in the ambience of cinemas and a decrease in the quality of audio and visual standards. The fall in cinema standards coupled with the availability of watching movies on videocassette players

lead to a decline in cinema patronage. Most cinemas were during that time, and still are, run as small business and these businesses did not have access to capital to improve the cinema ambience and quality to arrest the declining patronage. In June 1997, we opened the first Multiplex Cinema in India in Saket, Delhi. Since the beginning of 2001, several state governments unveiled tax incentives (by way of complete or partial waiver of entertainment tax in the initial five years of operation) to attract new investments in the film exhibition business. The tax incentives coupled with falling interest rates made investment in cinemas more attractive and led to old cinemas being converted into Multiplexes and new Multiplexes being established as part of shopping complexes (or malls). State entertainment taxes in India are among the highest in Asia. This has resulted in pressure on the profitability for a number of players in the exhibition business. As a result, exhibitors (especially the single screen owners) have not been able to maintain and/or upgrade their cinemas. A worsening quality of cinemas resulted in lower number of patrons, which put a further strain on profitability. The entertainment tax percentage in certain states is set forth below:

In order to encourage investment in the film exhibition sector, many state governments have announced policies offering entertainment tax benefits. This has encouraged the growth of Multiplex Cinemas and also

encouraged single-screen theaters to convert into Multiplexes. The quantum of entertainment tax benefit which may be available in each state is different and the availability of these exemptions would be dependant on compliance with certain conditions specified by the relevant state. A synopsis of the key elements of the entertainment tax exemptions which may be available in the following states is given below:

Technological
Film Distribution Holdups One of the main features of the Indian film industry that differentiates it from those in western countries is the limited initial release of films. Due to the high print costs for films (approximately Rs. 70,000 per print) as a percentage of the average ticket price in India, distributors have adopted a policy of releasing a limited number of prints in each territory and

rotating them in the territory, starting with A-grade cinemas in A-class centers. The bigger movies are released with 300 400 prints to satisfy a potential market of 12,000 cinemas. The practice of rotating prints and the resultant delay of the release of films in B and C-class centers create three major problems for film exhibitors in B and C-class centers: Pirated DVD/VCD copies of the film are generally by the time the film is released in B and C class centers, which reduces demand; If the film was not a hit on its initial release in the A-class centers it is unlikely to do well on its delayed release; and The quality of the celluloid film print is negatively affected each time it is played, so poor picture quality is also an issue - often the dark and scratchy print is hardly visible on the screen. The above factors result in the box office potential of movies not being realized. Many cinemas in B and C class centers operate on a 7% to 8% occupancy ratio. Impact of Digital Technology on Cinemas in India To counter this issue of low first instance release, digital cinemas are being opened in B and C-class centres in India and movies are being released in those cinemas at the same time as movies are released in the A-class centers. Digital copies of films cost significantly less than film copies (approximately Rs. 3,000 for digital compared with Rs. 70,000 for film) and the cost of digital projection equipment being used in India is also significantly less than that of film projection equipment (approximately Rs. 800,000 for digital compared with Rs. 1.5 million for film). The significant reduction in the cost of digital cinema compared with celluloid film makes an India-wide simultaneous release of a movie economic. As of March 2005, 100 digital cinemas had been opened in India, of which an estimated 65 were in operation. As of March 2005, 100 digital cinemas had been opened in India, of which an estimated 65 were in operation. Digital technology helps overcome the problems faced by B and C-grade cinemas. First, digitalized motion pictures are not required to be transmitted through physical media. This means digitalized motion pictures can be distributed to more B and C-grade cinemas within the first weeks of their release without incurring additional

costs to produce additional prints. Secondly, digitalized motion pictures maintain consistent and identical picture quality that is not compromised by use, time, and transmission. Thirdly, reducing the time between the release of a motion picture and its screening in multiple cinemas helps take advantage of the heightened demands of cinema patrons during the initial five to eight weeks of a motion picture's release. This helps to combat the market for pirated motion pictures and helps increase attendance rates at B and C-grade cinemas. Implementing digital technology in cinemas in India should expand the market for B-grade and C-grade cinema owners and operators and thereby increase their profitability through: increased number of screens on which newly released movies are shown, without incurring additional production costs; Improved and consistent picture quality without regard to the location of the cinema; and Satisfaction of cinema patrons' demands at the time when the demand for screening of a movie is at its highest, which should reduce the loss of demand caused by the availability of movies on pirated DVDs/VCDs. Challenges Faced by Transition to Digital Cinema in India The digital projection technology currently being used in India (mostly in Bclass and C-class centers) satisfies the requirements of the B and Cgrade cinemas in India but does not produce a picture quality as good as the picture in A-grade cinemas, where celluloid film is used. In order to have a digital picture quality as good as the current celluloid film quality in A-grade cinemas, as well as to meet Digital Cinema Initiative standards, we need to use at least projectors, which cost between Rs. 45 million (US$ 90,000- 110,000), which is significantly more than the cost of celluloid film projectors. As and when the digital projection technology up-gradation will be required in the A-grade cinemas in India, the issue of financing of such equipment will need to be addressed. In the United States, digital projection equipment is being financed by Hollywood production houses rather than the film exhibitors, as the production houses get substantial savings from not having to produce celluloid prints.

ABOUT THE COMPANY

Priya Exhibitors (p) ltd is a part of the diversified Bijili Group, which has
interests in transport, finance and construction sectors all over India. After a downturn in the industry in late 80s when the onslaught of video wars at its peak cinema has now been rejuvenated with the latest international trends in cinema exhibition reaching Indias shores swiftly with the arrival of satellite TV. The capitals cosmopolitan audience is becoming increasingly aware of the advanced cinematic technology that enhances the movie going experience and this has whetted their appetite for watching movies on the big screen . To cater to the increasingly sophisticated tastes of the audience Priya exhibitor Pvt Ltd. totally refurbished the existing cinema in June 1991 including installation of a Dolby stereo sound system. They also gained exclusive rights to screen blockbusters from major distributors mainly Warner brothers, 20th century fox, united international pictures, small wonder then that the cinema has become the focal point for entertainment in the capital for both the young and old attracting over 30,000 patrons a week. Infact, Speed set a national box office world record of Rs.785000 in its first week of screening at PVR (the highest ever for an English film), which is remarkable considering the relatively low price of a cinema ticket in India. Buoyed by the overwhelming success of the cinema after upgrading, Priya exhibitors ltd have taken he next initial step for setting up the first multiplex in the country in a joint venture with Village Roadshow Ltd, Australias leading entertainment corporation. PVR is a brand name synonymous with state-of-the-art cinema exhibition in India. PVR specializes in developing and operating state-of the-art Multiplexes. PVR Cinemas are the leading cinemas in the country with an emphasis on design, technology and service. Over the last three years, PVR has established itself as a very strong brand associated with movies, quality exhibition and youth-targeted promotions.

The company was conceived as a Joint Venture between the Bijli family, headed by Mr. Ajjay Bijli as Indian Promoters and Village Roadshow Limited of Australia, one of the largest multiplex operators in the world with more than 1500 screens under operation.

PVR IN DELHI PVR has been a pioneer in multiplex development by setting up Indias first multiplex PVR Anupam4 at Saket in city of Delhi. The company has since grown to become the largest cinema exhibition player in the country and has 5 theatres with 19 screens in city of Delhi/Gurgaon under its operation. The Cinema can boast of the highest box office collections in India for five consecutive years since its opening. Located around the Cinema in the same complex are a number of up-market restaurants, pubs and fast-food eateries that make it a popular youth hangout place and indeed an entertainment experience for the entire family.

PVR Priya, a 25-year-old cinema still considered the best Cineplex in Delhi, was completely renovated and brought into the fold of PVR in January 2000. PVR Priya boasts of the highest box office collections in the city of Delhi after PVR Saket. It also has the distinction of having the widest screen in India.

Following the tremendous success in South Delhi, PVR expanded to West Delhi in 2001 with the launch of two new multiplexes -- PVR Naraina, and PVR Vikaspuri. PVR Naraina, with four screens and 830 seats, was launched in August 2001. PVR Vikaspuri (3 screens, 921 seats) was launched in November 2001.PVR Group has re-opened one of Delhi's oldest and most popular cinema hall, Plaza; known as PVR Plaza.

With a seating capacity of 300 seats, the all new single screen auditorium has been renovated and refurbished to bring back its former glory. The cinema, unique in its nature, combines the look and feel of the 50s with the state-of-the-art cinema viewing technologies of today. The most recent addition to the chain is PVR EDM, this three-screen multiplex, located in the popular East Delhi Mall, is equipped with the stateof-the-art technology and is one of its' kind in the vicinity. The three-screen multiplex has a total seating capacity of 723 seats. It is equipped with the latest THX-approved three-way surround sound system with real life sound effects and state-of-the-art projection facility with the latest Xenon-based technology. The stadium seating arrangement ensures unobstructed viewing from anywhere in the auditorium.

PVR IN GURGAON

In May 2003, PVR Cinemas opened North India's largest multiplex- a 7-screen cinema in Gurgaon. Built over an area of 55000sq ft, this multiplex has an avant-garde lobby with studio effect interiors and currently offers a seating capacity of 1300 seats. Two luxurious auditoriums called Cinema Europa' have been custom built with vibrant red, plush reclining seats, double armrests and ample legroom offering patrons a comfortable and relaxed cinema viewing environment. The choice of movies played at the Europa are an eclectic mix of tastefully chosen niche Indian films, internationally acclaimed as well as Oscar winning Hollywood films.

PVR IN FARIDABAD

In May 2004, the company inaugurated its sixth multiplex, PVR Faridabad. Located at the popular Ansal Crown Plaza in Faridabad, this two-screen multiplex has a total seating capacity of 522 seats. It is the first of its kind in Faridabad. PVR launched its first ever franchised CinemaPVR SRS in Faridabad. PVR SRS is a 3-screen multiplex that opened to the public on 12th November, 2004. It has a total capacity of 776 seats..

PVR IN BANGALORE

PVR Cinemas has opened India's biggest multiplex (11 screens) in Bangalore. Built over 1,20,000 sq ft of space, this state-of-the-art multiplex is located in the heart of Bangalore at the Forum Mall in Koramangla with a seating capacity of 2019 seats. This multiplex includes two ultra premium cinemas known as the Gold Class and two luxurious auditoriums called Cinema Europa in addition to seven Classic auditoriums. PVR FIRSTS
First

to launch a multiplex in India - PVR Anupam Saket, Delhi First to launch India's biggest 11 screen multiplex - PVR, Bangalore First to bring premier movie viewing to India with the exclusive Europa Cinema and Lounge at PVR Gurgaon First to introduce Gold Class Cinemas in India at PVR, Bangalore First to form a foreign joint venture with Village Roadshow, Australia First to receive institutional funding in the cinema industry - from ICICI Venture First to offer computerised & online ticketing First to accept credit cards in cinemas First to introduce mobile based information & ticketing service

First to launch a loyalty program for movie-goers in India First to launch 'Movies First' - a monthly magazine that updates the movie lover on the latest happenings in Bollywood and Hollywood.

PVR has also ventured into the business of film distribution and set up PVR Pictures, a fully-owned subsidiary of PVR Ltd. PVR Pictures specialises in acquisition and local distribution of films. ACCOLADES Ajjay Bijli, Managing Director, PVR Limited, was conferred The Theatre World Newsmaker of the Year Award for 2003'. It is his vision and outstanding contribution to the cinema exhibition industry that has made PVR the largest cinema exhibition company in the country today. PVR Gurgaon was nominated for an award in the Best Retail Environment category at the Annual Design Week awards. Ajjay Bijli was also honoured with a special award at CineAsia 2004 for his significant contribution to the multiplex industry of India. For the first time, CineAsia honoured an Indian exhibitor. He has also been chosen as Signature Youth Icon for the year 2005. MISSION A commitment to deliver the best quality cinema viewing Every where, Every time. PVR AS A BRAND PVR has successfully assimilated the Standard operating business and operational practices of Village Roadshow and set new standards in the quality of exhibition in India. The quality of cinema viewing has made the PVR brand synonymous with high quality cinema viewing in the country. This has enabled them to enter into strong corporate alliance partnerships and co-marketing exercises with leading brands like Pepsi, Evian, Samsung,Whirlpool, Hero Honda, Bharti, American Express, Master Card, Pizza Hut, Cadburys etc. This has generated additional steady stream of revenues for the company. RELATIONSHIP WITH VILLAGE ROADSHOW

In 2002, Village Roadshow was undergoing a strategic and business restructuring worldwide. As part of their worldwide strategy, they decided to concentrate on the Production business and on Exhibition business only in those territories where they have majority control and have the critical mass of screens. In line with this strategy they exited from almost 20 countries worldwide, including India.

Village Road shows inability to support the growth plans of PVR, the Indian promoters offered to buy out the Village stake and the joint venture was mutually decided to be terminated in June 2002. However, though Village Road show exited as a joint venture partner, the excellent relationship between both companies continues and is reflected by the fact that PVR continues to have an exclusive long term technical and marketing services arrangement with its erstwhile partners on a long term basis. During the 5 years of joint venture with Village, PVR was exposed to best business and operational practices in the Cinema Exhibition industry and was able to revolutionize the way to go to cinemas.

SWOT ANALYSIS

STRENGHTS
First mover advantage in the multiplex business in India Updated technology Premium positioning Plays Hindi, English, Regional & foreign movies Locational strength Ambience Started the concept of a complete movie going experience Market leader Very strong brand equity TOM recall Original multiplex Blend of retail & entertainment

WEAKNESSES
High cost perceptions T.A very specific (not mass service) Disjointed images for all PVR properties Customer retention Parking problems

OPPORTUNITIES
First mover advantage Growing family spendings on entertainment Large film industry over 200 hindi films every year PVR loyalists

THREATS
Competition blooming large Governments interference Entertainment Tax Other Multiplexs as competition Other ways of entertaingment Accused of increased crime rate PiracyNo control over surroundings eg. West Delhi Movies becoming bigger than the brand

THREAT OF COMPETITORS PVR Cinema currently faces competition from other companies in the Indian film exhibition sector. Some of their competitors have greater financial resources than them and therefore they may be in a better position than PVR to invest in Multiplex Cinema projects or to sustain losses from such developments in the start-up stage. In the future, they may also face competition from global entertainment companies if and when such companies make their foray into the Indian exhibition sector. There are currently seven major competitors in the film exhibition industry: PVR Cinemas; Inox Leisure Limited; Adlabs Films Limited; Shrinagar Cinemas Limited; E City Entertainment; Wave Cinemas; and DT Cinemas. The tables below show the number of screens operated by each of those companies and the number of cinemas operated by each of those companies. DT CINEMAS

The DLF group, one of the largest real estate cos a turnover of Rs.1000 crores. DT cinemas are set with its first multiplex at the DLF city center in Gurgaon started on 7 mar 2003

Spread over 3 lac square feet on mg road, city center is Gurgaons first multiplex, covering 48000 sq ft, hosts 3 screens and can seat upto 1100 people .

Has imported state of art projection systems in the world Offers telephone,net and SMS booking home delivery facility 2 Gurgaon, Delhi and other NCR regions. DT Cinemas has also tied up with Wow, a telemarketing outfit for phone bookings and almost 5 per cent of their total bookings come through the phone. DT Cinemas is planning to add a creche facility to its Gurgaon premises soon. SATYAM CINEPLEXES Satyam Cineplexes is part of the Superior Group. The Superior Group has interests in Garment, Candles, Handicrafts, Film Distribution and Cineplexes. Satyam complexes with its state of the art cinemas has brought to India, for the first time, thebest in class cinema entertainment that the world has to offer. With the launch of the Satyam Cineplex in Patel Nagar and two cineplexes at Janak Place and Nehru Place currently under construction, Satyam Cineplex is poised to become a leading Multiplex operator in India with a capacity of 5000 seats. Satyam CEO Deven Chachra: We plan to develop a The group currently owns 3 prime sites in New Delhi namely Janak Place, Patel Nagar and Nehru Place with many more prime sites under negotiation. The group has a plan to add at least 2-3 sites every year on a rolling programme. By March 2004 Satyam will be running 16 screens at 4 sites with a total of more than national chain of multiplexes. We will develop properties in Mumbai and Pune in the next 18-24 months. Bangalore and Hyderabad will be covered in 2005. Initially, our focus would be to consolidate in Delhi, Chandigarh and Uttar Pradesh to leverage Satyams distribution edge. The new expansion project follows from the finalizing of the Rs 82-crore project, which includes revamp of an existing cinema hall (already

operational) in Delhi, and development of two more multiplexes in the Capital. In total Satyam has three cineplexes in Patel Nagar, Janak Place and Nehru Place, in Delhi
PROMOTIONS

Recently, Jaypee Siddharth tied up with Satyam Cineplexes with an aim to provide some exciting and innovative packages. Under this scheme, guests can enjoy and savour a whole host of privileges. To begin with, any guest whose bill in any of the restaurants of Jaypee Siddharth is Rs 2,000 and above will be entitled to two tickets at Satyam. Further, this promotion works both ways. If any guest who presents a ticket stub of Satyam Cineplex (the ticket stub should not be very old) at Cooks Cafe at Jaypee Siddharth will be entitled to a soup and dessert, provided the guest in question buys a full meal at the outlet. On weekends, there is a special buffet spread for ticket stub holders (afternoon and evening show audiences) of Satyam who will be entitled to have this buffet at Cooks Cafe at a discounted rate of Rs 500 for a couple.The normal buffet price at the hotel is Rs 469 per person, plus taxes. Another unique promotion is titled Siddharth on Wheels. This scheme is valid for evening shows only and under this scheme cine-goers can order for food at Jaypee Siddharth before they go to Satyam to watch the 6 pm show. Mr. Kapila assures us that hot meals would be at the doorstep when the family returns home after watching the movie. This meal costs RS. 150 per person. Caf Coffee Day, a leading national retail chain of cafs, as part of its 2nd anniversary celebrations in New Delhi kicked off a car grand rally in association with Satyam Cineplex and others. The rally ended at 11am at Satyam Cineplex Caf where the prize distribution was held. Satyam cineplexes launch party at cinemas rock music performance by Black Slade.

 3Cs The Rs 450-crore Competent Group of Companies, engaged in buisness of automobile dealership, construction and film distribution,decided to diversify into the development of a chain of cinema theatresunder the brand name 3Cs (implying Competent Cine Court).

Beginning with Delhi, the company will set up 3Cs in Lucknow and Amritsar in the short term. The cineplexes come under the brand name 3CS, which stands for Competent Cine Court. The first of these cineplexes cum food plaza is already operational at Lajpat Nagar in Delhi since October 2002 and the group has invested nearly Rs 20 crore in this project. Its a 325-seater, single-screen cinema hall with a six-brand food court. The project is said to have been financed by group internal accruals. 3Cs six food retailing brands (roped in through strategic alliance) in the Food Court are: McDonalds, Barista, Chopsticks Express, Diva Cafe, Tikk- A-Wrap (London) and Dosa Express (Sri Lanka). Competent Group of Companies chairman and managing director Raj Chopra: 3Cs proposition is to offer a combination of good food and good entertainment under one roof. The Food Court concept allows different members of family to opt for different kind of food from the best brands under one common dining space The Group now plans to set up more such cineplexes cum food courts at Ludhiana, Jalandar, Amritsar and Chandigarh over the next 2 years