ADAG-controlled Adlabs to set up 125 screens

New Delhi, July 30 (UNI) With an eye on tapping tax exemptions from various state governments, Anil Dhirubhai Ambani Group (ADAG) controlled Adlabs Films, will set up 125 more multiplexes across the country with an investment of Rs 250 crore by 2008.

''Adlabs has an agressive expansion plan in the mutiplex segment with a target of adding around 125 screens by FY2008, with an expected capital investment of Rs 250 crore. Aided by the changing demograhic and consumer spending patterns, the retail boom that is underway, and encouragement from state governments in the forms of tax exemptions, the multiplex industry in India is in a growth phase,'' an industry report has said.

Presently, the company has 24 screens across six locations in four cities.

The entity is stergthening its management team and systems to manage the new projects and higher scale of operations.

The company also plans to grow its scale of current opeartions and diversify into related areas like overseas film distribution, setting up of production studios and FM radio.

The proposed investments will be funded largely by equity and the recently concluded Euro 84 million Foreign Currency Convertible Bonds (FCCB), credit rating agency ICRA's report said.

The ADAG, which owns over 50 per cent stake in the company, will infuse an additional Rs 67 crore into the company during the course of the next few months.

While Adlabs proposes to grow its film financing activities, it has also drawn up a portfolio strategy with exposure to small and medium budget films, with a mix of debt and equity.

The company reported a PAT of Rs 18.9 crore (30 per cent growth) and a turnover of Rs 74.5 crore (16 per cent YoY growth) in the nine month period ending December 31, 2005.

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