Adlabs Films inks agreement with Rave Entertainment

Mumbai, May 2 (UNI) Adlabs Films Ltd, Anil Dhirubhai Ambani Group controlled company, has entered into an agreement with Rave Entertainment to acquire the rights to conduct cinema exhibition business at one operational multiplex in Kanpur.

The project also includes six more businesses in the National Capital Region (NCR), Uttar Pradesh (UP), Punjab and Haryana, totalling 23 screens.

''Rave's properties are well managed and the projects under implementation are in carefully chosen strategic locations.

Coupled with our own aggressive growth path, we are well on our way to becoming the market leader by July 2007,'' Adlabs Films Ltd Chairman and Managing Director Manmohan Shetty said.

This acquisition will increase Adlabs' multiplex presence by five properties (17 screens) within the next four months, he said.

By end of March 2008, the company would have a presence in 70 cities, spread over all significant film territories that contribute over 80 per cent to the domestic box-office collections, Mr Shetty said.

The licence will provide Adlabs quick access to the Delhi-UP territory, which contributes a sizeable 23 per cent to the all-India box-office, a statement said today.

Rave Entertainment Pvt Ltd owns and operates the popular brand 'Rave Cinemas' in Kanpur and has entered into license arrangements for operating cinemas at prominent retail locations in Noida and other centres in UP, Punjab and Haryana.

Five of the seven properties are also entitled to entertainment tax exemptions. The license terms between Adlabs and promoters of Rave are subject to confidentiality provisions.

Rave Entertainment Director Vikram Kothari said, ''Rave has built a strong franchise in Kanpur and has projects under development in important locations in North India''.

Ravi Sardana, Senior VP, ICICI Securities Ltd, financial advisors to Rave Entertainment, said ''The consolidation in the exhibition space and integration with production houses will lead to faster development of the movie business and significant value creation''.

Adlabs recently declared impressive results for the 12-month period ending March 2007. It recorded a total income of Rs. 348 crore (166 per cent growth over previous year), EBIDTA of Rs 101 crore (100 per cent growth) and net profit of Rs 73 crore (158 per cent growth).

UNI