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Indian multiplex venture Pyramid Saimira Theatre may be receiving a cash injection of around $100m. Private Equity group Citigroup Venture Capital is awaiting shareholder approval for investment in one of the multiplex pioneers in India. Pyramid also has a joint venture digital cinema scheme in China and a multiplex venture in Malaysia. Additionally, Pyramid is a producer of films and places its own films in its cinemas, bypassing distributors. Citigroup's funds would be used for both cinema expansion and film production. As at June 2007, Pyramid claimed to have 29 multiplex sites with 371 screens, with a target of 2,000 screens by 2010. Pyramid is establishing a Network Operating Centre from which to convert films to digital and transmit them by satellite to digital cinemas in the country. Whilst current multiplex development is in the early days and is focusing on the prime ('A') sites, it is also inevitable that attention will expand to include 'B' and 'C' class cinemas.
Moving into this arena is Fun Cinemas, backed by E-City Ventures, which has announced plans to build 1,500 new screens across India by 2011, of which 300 are to be housed in multiplex cinemas. The remainder would be single-screeners. The strategy is to target tier 2 and 3 cities, leaving the tier 1 to the operators already in the market. Fun Cinemas wants to invest R 5bn ($121.6m) in building these screens. Fun currently operates 47 screens in 10 cities and 14 sites.
Multiplex cinemas make up less than five per cent of India's 12,000 screens, but they account for more than half the box office revenue of Hollywood releases in the country and more than a third for Bollywood titles. That is partly due to the fact that ticket prices can be five times higher than at non-multiplex sites. Tax incentives for multiplex cinemas during the past five years have helped to move the market on.