Date:23/01/2004 URL: http://www.thehindubusinessline.com/2004/01/23/stories/2004012301210600.htm

Back PVR Pictures set to foray into Hindi film distribution

Our Bureau

New Delhi , Jan. 22

PVR Ltd, the Rs 100-crore film exhibition company, has set its sights now on the lucrative but high-risk Bollywood film distribution business.

PVR Pictures, a 100 per cent subsidiary of PVR Ltd, is set to foray into the commercial distribution of mainstream Hindi films, Mr Sanjeev Bijli, Director, PVR Ltd, told Business Line here on Wednesday.

The company is kicking off the Bollywood film distribution initiative with the forthcoming Tata Infomedia produced Aetbaar, directed by Vikram Bhatt and starring Amitabh Bachchan.

PVR has acquired the distribution rights of Aetbaar for the Delhi and Uttar Pradesh territories. According to Mr Bijli, on average, distribution rights per territory range from anywhere between Rs 20 lakh and Rs 3 crore.

PVR Pictures has acquired rights to distribute 12 English films this year, which include the Pierce Brosnan starrer Laws of Attraction and Ashley Kutcher's Butterfly Effect. In addition, the company is talking to six-seven Hindi film production houses for acquisition of distribution rights, Mr Bijli said. According to him, the film distribution business generates about 25-30 per cent returns on investment.

While PVR Pictures was set up two years ago for the purpose of film distribution, the company was distributing only English films all along. Elaborating on the decision to venture into Hindi film distribution, Mr Bijli said, "Hindi movies generate far greater box office revenues compared with English flicks, which generate only 7-8 per cent of overall box office collections. Hindi films on average account for 40-45 per cent of box office collections, with local language films accounting for the remaining pie."

While 2002 was a bad year for the film industry, the industry's prospects improved last year with hits such as Koi Mil Gaya and Chalte Chalte.

PVR Ltd's expansion plans this calendar year include setting up 29 additional screens across the country, to add to the present figure of 19. While 11 screens will be set up at a single location in Bangalore, another five will come up in Hyderabad, 10 in Mumbai, and a couple in and around Delhi. This expansion, for which the company has earmarked an investment of Rs 100 crore, will mark PVR Ltd's first step to establish a pan-Indian presence.

"The Rs 100-crore investment will be generated through internal accruals, debt and by funding from ICICI Ventures which holds 38 per cent equity stake in PVR," Mr Bijli said. He added that plans to list the company on the bourses were still a couple of years away.

The company proposes to venture into development activity subsequently, and is considering setting up cinema complexes along with restaurants and food courts, under the PVR banner, he said.