National Case Study

Competition

Team Name:- Zealous Roker

Team Members
1. Indranil Biswas
2. Sumanta Kumar Koley
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Executive Summary

1. The expansion should happen in Tier 2 cities(Lucknow,

Chandigarh, Surat)
2. We suggest build (as part of a mall or a standalone
property)
3. It should be a multiplex format
4. GCC also needs to consider whether to consider
expanding to Tier 1 cities going ahead/or strengthening
their reach in Tier 2 Cities

Name of the Presenter/ Name of the Department 2

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Market Selection
•Tier-2 & Tier-3 cities have much lower screen density barring a large
section of the population from experiencing the latest movies.
•With the increase in popularity for the regional films the demand for
movie screen has risen in tier-2 and tier-3 cities
• Thus the expansion can be done in tier 2 cities considering four to six
establishment for next three years

• Movie industry exhibits a positive growth in south India and the percent
increase of footfall in movie theater is also high. “According to ficci-EY
media and entertainment industry report , Tamil and Telegu films
clocked footfall of 126 million and 240 million respectively in 2017”
• This Trend also exhibit a fare chance of converting single screen
theater to multi screen theater

Name of the Presenter/ Name of the Department 3

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Cost Calculation

• Assumption:-1. Market is tier-2 cities.

2. Capacity of each theater is 500 and these will be
double screen theater.
3. Total area for a theater is considered to be 18K sq.ft
Fixed Cost
Items Cost (in Cr.)
Area 6.3
Sound System 0.7
Video system (4K System) 1
Infrastructure and building 2
Total 10

•Let us also assume the operating cost is 10 lakh/month

Name of the Presenter/ Name of the Department 4

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Revenue
•Assumption:-60% will be occupancy rate for every shift of every
screening.
•Average price of the ticket is Rs.150
•Total no of show is 6/day
•30 days it will be non operational for maintenance and holiday
purpose in a year.
•Thus total revenue In a year:- 150*6*335*500*.6
=90450000
This revenue also include the rent to be paid to film producer.
This amount is assumed to be 50% of the total revenue.
Thus Net revenue by the theater:- 45225000

Name of the Presenter/ Name of the Department 5

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Break Even
•So now for next three year considering present inflation rate to
be 4% total operating cost will be
10L*12+10L*(1+.03)*12+10L*12*(1+.03)^2
=3.70 Cr (Approx)
Total cost :-10Cr+3.70Cr=13.70Cr

The price of the ticket will also be increased by 4% to cope up

with the inflation. Thus total revenue for this period:-
335*.6*500*6*(150+150*1.04+150*1.04*1.04)*.5
=14.12 Cr (approx.)

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