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North India Multiplex Expansion Plan

The document describes a proposal for a new multiplex cinema chain called OHM with 50 theaters and 100 screens across North India. It provides an overview of the multiplex industry in India and outlines the key advantages of multiplex cinemas over single screen theaters. The concept proposes digital projection technology, food courts, and other amenities. It claims the multiplex model will provide a metro city experience at lower ticket prices and ensure income and returns for investors from day one.

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0% found this document useful (0 votes)
295 views13 pages

North India Multiplex Expansion Plan

The document describes a proposal for a new multiplex cinema chain called OHM with 50 theaters and 100 screens across North India. It provides an overview of the multiplex industry in India and outlines the key advantages of multiplex cinemas over single screen theaters. The concept proposes digital projection technology, food courts, and other amenities. It claims the multiplex model will provide a metro city experience at lower ticket prices and ensure income and returns for investors from day one.

Uploaded by

someswarkumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 13

An opportunity to multiply your real-

estate value, Status & regular Income.

50 theatres with 100 screens across


North India

1
PROJECT OVERVIEW
Industry Overview

The Multiplex business segment is in its nascent stage of


growth. Several multiplexes have blossomed in many parts
of the country over the past few years. Multiplexes were the
preferred choice for distributing movies in large cities.
Multiplexes not only increased the number of available
screens, but also provided them with excellent acoustics,
enhanced picture display and luxurious, glamorous
aesthetics.

Rising consumerism supported by increase in


disposable income and favorable demographic changes

The Indian middle class is emerging with a greater earning power and higher disposable
income. Multiplex Cinemas generally cater to middle and high income households. This is one
of the key factors that will drive the growth of Multiplex cinema segment. Median age in India is
lowest in the world at 24 years as compared to 35 years in US, 41 years in Japan and 30 years
in China. A significant change in the age profile of population is observed which will be leading
to accelerated consumption over the next few years. Increased levels of disposable income
along with lower median age will result into lower savings and more spending. The urban
population between the age group of 15-34 years is the most frequent movie going section in
the country and growth in this segment would propel growth in the multiplex segment too.

Lower penetration of multiplexes within the country

India has a total of 13,000 screens that makes it less than 13 screens per million populations.
This equation is on a far lower side as compared to the developed nations like US and France.
More than 95% of theatres are standalone, single-screen theatres with fragmented ownership,
unclear control, and paucity of funds for maintenance and up gradation. A UNESCO study says

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India has a market for 20,000 screens today. Considering the facts, the untapped potential for
growth of Multiplex industry in India is huge.

Advantages of multiplexes

Multiplex Cinemas offer significant economic advantages


over similar size single screen theaters.

Better occupancy ratios

Multiplex Cinemas have multiple screens with different


seating capacities. The Multiplex Cinema operator can
choose to show a movie in a larger or a smaller theater
based on its expected potential. This enables the Multiplex
Cinema operator to maintain higher capacity utilization
compared with a single-screen cinema.

Greater number of shows

Each movie has a different screening duration. A Multiplex Cinema operator has the flexibility to
decide on the screening schedule so as to maximize the number of shows in the Multiplexes,
thus enabling it to generate a higher number of patrons.

Better cost management:

At OHM, Multiplex Cinema benefits from a set of shared facilities, such as the box office, toilets, food and
beverage facilities and common manpower, are resulting in a lower cost of overhead per screen.

3
COMPANY PROFILE

We are part of the OHM Group worth Rs 500 Cr, having diversified interest in Real estate,
Multiplex development, Exhibition, Integrated steel plants in Hindpur, A.P., and
Manufacturers & Exporters of Granite from Bangalore and Madurai. As a result of a recent
corporate restructuring, we presently control all the movie exhibition businesses of the OHM
group. Our promoters experience in real estate helps us in identifying strategic locations at
economical rates, and rapid and timely execution of projects with tight control on costs and
quality.

Ohm Entertainment Privet Limited (OEPL) was incorporated in October 2007 for the purpose
of establishing a chain of Multiplexes & Exhibitions. We have started establishment of OEPL’s
1st project at Sirsa after a detail market study.

The OEPL has very well designed revenue model. For every establishment there is different
sort of plan for revenue generation. In case of Multiplex, the revenue will be generated through
sale of Tickets for new release, indoor and outdoor advertisement, food and beverages, gaming
zones.

Mission

“We at OHM Endeavour to offer a world class movie going experience to our patrons at each
price point by focusing on quality, customer satisfaction and providing a host of value added
services.”

Vision

Here at OHM, we are extremely proud of our brand equity. We have not only managed to
become the fastest-growing icon in the Media & Entertainment sector but have also established

4
ourselves as a major player in the Exhibitions of Movies. We live by our brand values and thus
believe that entertainment is a fundamental part of every individual's life and all of us deserve
the best at least price.

We are giving a shape to our vision with our newest venture: A Multiplex with low cost!

Values

Customer Satisfaction Quality, Excellence and Ethical


Business Conduct Premium return on Assets Use of
Technology and Innovation for Market Leadership Value
Employees for attracting and retaining best talent Corporate
Citizenship through Corporate Social Responsibility.

We at OHM create Magical Movie Memories, through our


advanced and Quality based technologies for our
customers, providing them with excellent hospitality through
our friendly and trained staff in our comfortable and clean
environment, which will be based on continual improvement
for satisfaction of our Customers.”

Philosophy

Corporate Excellence through satisfaction to our Patrons, Employees, Investors and Vendors.

5
THE CONCEPT

Acknowledging the huge demand for entertainment and information services in A & B Class
urban markets, OHM Group, through its Company OHM Entertainment Pvt. Ltd (OEPL), plans
to set up 50 theaters with 100 screens across north India. OHM will leverage its strength in
Digital Media Platforms, to distribute content and information in far-off areas, bridging the
technology and entertainment divide and need gap.

Features & Role of OHM

1. OHM's Multiplex provides Digital Cinema Exhibition Centre with the ability of screening
multiple movies in a day.

2. With Technical Tie ups we will provide Dolby Digital sound quality & high image clarity
would lead to an overwhelming experience.

3. Multilingual films would be featured and promoted across all centres.

4. Promotional activities at cinemas like celebrity appearances.

5. ATM for providing banking services and additional revenues

6. Tie up with Adv Agencies Advertising revenues.

7. Option of screening alternate content.

8. Integrated Computer Ticketing System.

9. Tie up with Coca-cola for Food courts.

10. Information Kiosk.

11. Online real-time ticket sales data to all stakeholders.

12. Content acquisition (Movies) from distributors and finalizing settlement terms.

13. Settlement of commercial terms with Exhibitor, Govt. and Distributors.

6
TECHNOLOGY
1. No Print Cost as Films delivered through satellite

2. Films would be simultaneously released across


North India.

3. High definition quality projection from Digital


Projectars.

4. Reduction in distribution & logistic costs.

5. Control in piracy.

6. E-ticketing and CCTV surveillance 24x7.

7. Punjabi films would be promoted

8. Comfortable seating with in-built arm trays.

9. Ample leg room.

STRONG POINTS
The foundation strengths of our 'OHM Multiplex' Project
are:-

1. Multiplex costs not to be born by franchisee as No


Direct investment needed.

2. Provides 100% Metro City Multiplex feel with Lower


ticket cost.

3. Two Audiatoriums with a capicity of 100 seat each.

4. Operational cost per seat is lower as compare to


Metro City Multiplex.

5. Multi cuisine food courts, which shall enhance the Multiplex experience.

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6. Well experianced in colletral activities like Food Courts, Restaurents, Benquites, Gaming
Arcades, Shopping Complex and other Cinema related activities.

Opportunity for further development of land around OHM Multiplex

Once the OHM becomes a hub the area around can be developed for additional
recreation/businesses activities

RETURN FOR AN INVESTORS


1. OHM Shall provide high-tech equipment for the functioning of the Multiplex.

2. OHM shall also provide services like:-

• Maintenance of the projectors.

• Computerized and centralized ticketing services

• Online ticketing portal

3. Project to be pre-approved by leading financial institution.

4. Hassle free management for the franchisee.

5. Property becomes a milestone for the future investment and evaluation.

6. Optimum utilization of the infrastructure shall ultimately boost the Return on


Investment(ROI).

7. Income Starts from First Day Onwards.

8. Once the OHM becomes a hub the area around can be developed for additional
recreation/businesses activities.

8
FINANCIAL VIABILITIES
Rough Analysis
Capacity utilization 50 %
Cinema collection 510,000
Collection from Food Court 312000
162000
Collection from Parking & Advertisement
Income From Educational Programs 75000
Total Revenues 1059000
Expenses
Salary 93000
Power 125000
Others 80000
Total Expenses 298000
Project EMI payback 89586
Net Revenues 670414
Net Revenues - Per Annum 8056968
Investor Share @ 50 % P.A. 4028484

Cinema collection Capacity


50%
Screen Audi 1 100 50
Audi 2 100 50
1st show 82 4100
82 4100
Tickets 2nd show 120 6000
120 6000
3rd show 120 6000
120 6000
4th show 120 6000
120 6000
Total Occupancy 800
Shows per day 4
Occupancy In Nos. per day 400
Collection Screen 1 22100
Collection Screen 2 22100
Collection 44200
Days 30
Collection per Month 1326000
Total Entertainment Tax 306000
Net Collection 1020000
Distributors Share @ 50 % 510000
Exhibitors Share 510000

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Collection from Food Court 50%
Total Occupancy Per day 400
Per Month 12000
Sale per person Rs 40 480000
Raw material Cost 168000
Net Contribution from Food Court 312000

Collection from Parking & Advertisement


Parking and Advertisement Per Show 675
No. of shows 8
Collection Per Day 5400
Collection Per Month 162000

Salary detail Nos. Total


Manager 1 15000 15000
Supervisor 2 7500 15000
Accountant 1 7000 7000
Box Office 1 5000 5000
Food Courts 2 5000 10000
Parking 2 4000 8000
Assistants 2 5000 10000
Security 2 4500 9000
House Keeping 4 3500 14000
Grand Total 17 93000

Variable expenses Rupees


House Keeping / Cleaning Material 5000
Conveyance 5000
Printing & Stationery 5000
Staff Welfare 10000
Telecommunications 10000
Repairs & Maintenance 20000
Data Charges 15000
Miscellaneous 10000
Total 80000

10
WHY OHM’S MULTIPLEX

1. Owner to owner direct interface which other corporates lacks.

2. Multiplex costs not to be born by franchisee as No Direct investment needed.

3. Experiance to build low cost and less time consuming infrastructure.

4. Technicals & financial Tie ups.

5. Well experianced in colletral activities like Food Courts, Restaurents, Benquites, Gaming
Arcades, Shopping Complex and other Cinema related activities.

6. It gives you a Metro City Multiplex feel with a low investment.

7. Digital technology developed through years of research & development.

8. Well established in exhibition business.

9. With good corporate governance ethics & driven by proven professionals.

11
NECESSITIES
1. Registration with OHM.

2. Minimum commercial space of 4000 to 5000 square feet and having a minimum height
of 16 feet, super Structure done with power backup.

3. Commercial properties adjacent to common public places & prime locations.

OHM CONTRIBUTIONS
1. Along with the advantages, Features & Role, OHM also offers the following benefits:-

2. All approvals and paper work would be completed by OHM.

3. Hassle free business administration & professional management.

4. Transparent online internet accounting.

5. State of art infrastructure and amenities including digital services like projector screens,
lights etc.

6. Hi-fi acoustic which includes Digital Dolby Tech speakers, amplifiers, equalizers, cabling
etc for a realistic sound experience.

12
For franchise inquiry contact :

Pankaj Khemka Raj Kumar Jalan

Director Director

98960 00010 98969 66666

OHM ENTERTAINMENT PVT. LTD.


Ohm Cine Garden, 10TH, Mile Stone,
Hissar Road, Sirsa 125 055. Haryana.
Tel: 9254 333 333, 01666 250855,
E mail: - [email protected]
www.ohmmultiplexes.com

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