Showbiz

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Pyramid Saimira turns celluloid machine

Posted by jahanzaibmemon on December 30, 2007

Chennai-based firm to become the world’s biggest producer of movies by FY09

MUMBAI: Pyramid Saimira Theatre Ltd (PSTL), which plans to make some 40 movies in five languages by 2009 fiscal, is on its way to becoming the biggest producer of movies, globally.

Currently, it is in talks with three studios for producing Hollywood movies. P S Saminathan, MD, PSTL, said: “We are in talks with three studios for producing hardcore Hollywood films for the audiences there. Till now we were only getting offers for cross-over movies which we were not interested in.”

PSTL, which got listed last year on the stock market, is the holding company of Pyramid Saimira Production (PSPL) and Pyramid Saimira Entertainment (PSEL).

While PSPL produces films and TV content, Singapore-based PSEL, a 100% unit of PSTL, is a content agglomeration unit. It buys films and distributes them abroad catering to Asian audiences there and also buys Hollywood films and distributes them in the Asia-Pacific region.

After establishing its subsidiaries in Malaysia and Singapore and acquiring US-based Fun Asia, the company is now close to buying a theatre company in the UK.

And to fund this speedy growth, PSPL will be getting listed on the stock market by February 2008-end. By diluting around 12% of the equity, the company plans to raise Rs 150 crore.

PSEL expects to have 2000 screens by fiscal 2010. Currently, the largest theatre chain in Asia with 45 multiplexes and 750 screens. Along with this, 60 food courts will also come up across India. The first one has opened in Faridabad and one in every 45 days will now come up. Apart from the cost of acquiring land, which has already been bought in most places, the courts would need an investment of Rs 1.25 lakh each.

Analysts Avani Pramod and Nitin A Khandkar from Keynote Capitals Research said in their December 12, 2007 report on PSTL: “The company’s well-experienced and aggressive management and unique business model are its major strengths. PSTL’s innovative business model involves benefit of scale, increased negotiation power with producers, distributors and theatre owners and scalability.”

The report also said over the past few years, PSTL has ramped up aggressively, adding on an average, one screen, 650 seats and unlimited footfalls every day.

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