PROJECT FINAL REPORT

ON

CINEMA
BY

RAJKUMAR TANWAR

AT

E-CITY BIOSCOPE ENTERTAINMENT P.LTD

1
 PROJECT TITLE

BUSINESS DEVELOPMENT OPPORTUNITIES IN TIER II & III CITIES IN INDIA FOR

MULTIPLEX & CINEMALL

A PROJECT REPORT ON

E-CITY BIOSCOPE ENTERTAINMENT P.LTD

COMPANY GUIDE FACULTY

GUIDE
================
==============
Mr. VIKAS GARG Prof. AMIT
KUMAR
GM, B.D Isb&m,
Noida

Prepared by:

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 Rajkumar Tanwar
ISB&M, NOIDA
PGPBM 2007- 09

Acknowledgements
If words are considered to be signs of gratitude then let these words

Convey the very same my sincere gratitude to E-CITY BIOSCOPE for

Providing me with an opportunity to work with MULTIPLEX and giving

Necessary directions on doing this project to the best of my abilities.

I am highly indebted to Mr. VIKAS GARG, Mr.Ashutosh Mishra VP HR

and

Company project guide, who has provided me with the necessary

Information and also for the support extended out to me in the

Completion of this report and his valuable suggestion and comments

On bringing out this report in the best way possible.

I also thank Prof. AMIT KUMAR, ISB&M NOIDA, who has

Sincerely supported me with the valuable insights into the completion

Of this project.

I am grateful to all faculty members of ISB&M NOIDA and my

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Friends who have helped me in the successful completion of this

Project.

INDEX

Serial No Particulars Page no

1 EXECUTIVE SUMMARY 1-6

2 INTRO.ABOUT COMPANY 7-9

3 MULTIPLEX SCENARIO 10-19

4 KEY PLAYERS IN MULTIPLEX 20-30

5 POSITIONING OF BIOSCOPE 31-35

6 TARGETED CITIES 37

7 DESKTOP STUDY AND MARKET SURVEY 38-76

8 SOP ON PROPERTY 77-88

9 EMERGING BUSINESS DESTINATIONS 89

10 COST AND REVENUE ANALYSIS OF NEW 90-93

PROPERTY
11 AGE WISE CINEMA 94-96

12 SWOT ANALYSIS 97

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 13 LEARNING OUTCOMES AND 98
RECOMMENDATIONS
14 REFERENCES 99

Executive summary

India currently has 11500 existing screens, 95% are standalone, single screens. These single
screen cinemas are poorly maintained as the owners find it difficult to upgrade and renovate
their facilities, due to unavailability of organized finance. The deteriorating quality of these
cinemas dissuaded viewers and they started using alternative viewing options.

Over the last few years, multiplexes have emerged as a trend in urban India. "Multiplexes" are
essentially cinemas with 3 or more screens. They provide a quality viewing experience and are
generally located around shopping malls to increase footfalls in these malls. Each screen in a
multiplex has small seating capacities in the range of 150-300 seats as compared to single
screen cinemas which have capacities in the range of 800-1,200 seats.
With around 11500 active screens, India is under screened. China, which produces far lesser
films than India has 65,000 screens while the US has 36,000. India’s screen density stands low
at 12 screens per million populations. There is a need of at least 20,000 screens as against the
current 11500. This gives multiplex operators enough room to grow as the traditional single-
screen theatres do not have the financial wherewithal nor do they enjoy tax incentives.

The journey of multiplex which was started in 1997 with inauguration of first multiplex Priya
Village Roadshow (PVR) Saket in New Delhi is currently at crossroads roughly a dozen players
have entered in the business in small or big way. New players are trying to enter this sector and
the existing players are busy expanding their horizons. The multiplex has gone beyond the
metros to redefine entertainment in Tier 1 and 2 cities like Lucknow, Indore, Nasik,
Aurangabad, Kanpur, and Amritsar. The good news is at present roughly 70 percent of the total
box office collections in the country come from non metros.

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Understanding Multiplex Business
In last few years, strong economic growth, fall in interest rates, increase in real estate price, and
increase in consumption levels, are constantly fueling multiplex boom in India. Moreover,
multiplex operators are attracting movie enthusiasts, by combining movie viewing with food
courts, branded food and apparel outlets and gaming that provided high quality viewing
experience.

The entertainment industry growth is 19% in India. And total market worth is about 51,300
crore in India in year 2008.

The multiplexes are often characterized by a good ambience, comfortable seating, air-
conditioning, and modern infrastructure. The multiplex has various halls with different seating
capacities ranging between 200 to 500. This allowed the Multiplex operator to choose a theater
depending upon the movie’s potential which help them utilize higher capacity utilization.
Multiplex also help utilize show timing based on the screening duration, the number of shows
could be maximized. Moreover, depending on the movie’s performance, the exhibitors had the
option of moving it to theatres with different seating capacities and show timing. The multiple
movie options also offer moviegoers the opportunity to see the movie of their choice.

Multiplexes offer several economic like better occupancy ratio, greater number of shows. They
make more revenues in the first week of release by showing movie on more screens and reduce
the number of shows with decreasing demand. The other multiplex advantage comes out of
sharing facilities such as the basic amenities, F&B and manpower.

The multiplex model was built around a primary anchor – movies, though the revenue flow also
happens through several income-generating channels other than box-office collections. The
other revenue generation channels are food and beverage, product launch rentals and various
other promotions by companies. In the recent past luxury multiplexes have come up with new
experiences like partying in the theaters while the movie is running.

Multiplex owners, try and increase their income and reduce the expenses to increase their
profitability. On the one hand the primary sources of multiplex income are: Patron’s spending
viz. ticket sale, F&B, and parking, Advertisement Income, Management fee and Revenue
sharing. On the other hand the prominent components of expenses are: Cost incurred for the
working of a multiplex are: Distributor Share, F&B Cost, Lease Rentals, Other Operating costs,
and Entertainment Tax. The multiplex owners are working on different business models to
increase their reach and profitability. Business models are:

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Ownership Model: In the case of fully owned model the multiplex owner buys the land and
constructs a multiplex or buys a part of a shopping mall and sets up the multiplex within. In the
ownership model, capital cost is high but the multiplex operator benefits from escalating real-
estate prices. This model works where lease rentals are very high and capital costs are low as
the escalating realty prices could force higher rentals adding to fixed costs.

Leased property model: In Leased property model, an operator invests in only fit-outs and not in
the whole property and pays a fixed rent to the mall owner. This model is more prominent in
areas where mall development is slow but the property location is ideal for movie exhibition. In
the lease model multiplex operator has mostly variable expenses but company shells out more
money on rent, thus decrease profitability. Majority of the multiplexes are coming up in leased
properties, they can expand at a faster rate with less capital requirement and break even faster.

Theater management model: In this model the multiplex operator provides management
services to the third party operator. In this form of business both the parties work on revenues
sharing or fixed fees for property management or a combination of both.

The Major Players

Multiplex, in India is witnessing unprecedented growth. A few big corporate house have already
entered the business and others are planning to venture in the business through acquire existing
players. However, industry experts rule out any consolidation in the industry. They believe
market is still in the growth stage and there are enough opportunities for the existing players. In
current scenario competition is heating up among the existing players. Adlabs, PVR, IOX, Fun,
Fame, DT Cinema, Satyam Cineplexes have chalked out big expansion plans to increase the
number of screens in the next few years to get better share of movie revenues.

PVR Limited is the oldest player in the multiplex business in India. Ajjay Bijli, Managing
Director of PVR Limited, after bringing the multiplex concept to India, has created the largest
multiplex chain in the country. The company currently operates 24 cinemas with 95 screens
across 14 cities, and expects to have another 50 multiplexes operational by end of 2008. They
are developing five multiplexes in association with Prestige Group at Bangalore, Kochi,
Hyderabad and Mangalore.
PVR works across spectrum from PVR Premiere which is designed for the urban elite, with

7
ticket prices ranging from Rs 150-750 to the PVR Talkies which is low-cost multiplex in towns
such as Aurangabad and Latur, where tickets are priced at Rs 40. The various multiple formats
that straddle across income segments enable them capitalise on increasing footfalls and revenue.
What makes PVR special is that it has been profitable right since inception.

INOX (Indian Oxygen) Leisure Ltd was a diversification venture of the INOX Group, a 100%
subsidiary of Gujarat Flurochemicals Ltd. INOX has 24 multiplexes with a total of 84 screens in
18 cities – Pune, Vadodara, Kolkata, Mumbai, Goa, Bangalore, Jaipur and others.

They have plans to expand into other cities like Chennai, Hyderabad, etc. by the financial year
2008. Inox has one of the highest ticket prices per seat in the country and, yet, has one of the
best occupancy rates in the industry. No wonder Inox is the most profitable player in
multiplexes business.

Adlabs Films Limited is India’s leading motion picture processing laboratory, set up the
country’s first IMAX Dome Theater in Mumbai. Adlabs has 163 screens spread over 61 cities in
India besides an international network of 220 screens spread in the East, mid-West and some
parts of the United States. They are actively looking at expanding its business in countries like
the U.K, Australia Malaysia, Nepal, Mauritius, and Singapore.
Adlabs Cinemas has launched 6D cinema experience at Agra, which is designed to cutting-edge
visual and audio effects allowing audience simultaneous experience of sight, smell, sound,
touch and motion.

Fame a part of Shringar Group which runs single screens and multiplexes. Fame has 14
properties and 48 screens operational. It plans to take the total screen count to 75 by 2008. They
have plans to have presence in 60 sites with 250 screens by financial year 2011.

Fun Multiplex has uniquely positioned their cinema properties as epicenters of new economy
suburbs in each city. Fun Multiplex offers the finest entertainment experience provider, enabling
superior cinema viewing and real time leisure experiences to its patrons by combining the best
in technology, comfort, leisure and hospitality.
Fun Multiplex holds a leading position in the Indian multiplex market. It operates 53 cinema
screens in 13 cities and sixteen locations – Ahmedabad, Mumbai, Chandigarh, Hyderabad,
Guwahati, Delhi, Ghaziabad, Lucknow, Agra, Jaipur, Bangalore, Panipat and Gulbarga. The
company was planning to construct 35 multiplexes with 140 screens and these were expected to

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begin operations by the financial year 2008. In addition, the company has planned to acquire
additional screens and increase its screen count to 1500 by 2011.

Satyam Cineplexes, another popular chain, is part of the Superior Group. Satyam Cineplexes is
planning to infuse around Rs 250 crore to set up 104 multiplexes across the country. The 104
screens planned by Satyam will be in cities like Indore, Ludhiana, Dehradun, Kolkata, Rohtak,
among others. Satyam is targeting tier II cities in the country instead of having more screens in
the metros. This is mainly because of the high real estate prices in the metros.

CineMax, the Kanakia Group theatre, is one of the largest exhibition theatre chains in India
operating 19 multiplexes with 56 screens. CineMax has strong presence in Mumbai and they are
planning to expand nationwide rapidly.

CineMax offers premium services with recliner seats, massage chairs, any time tickets
machines, luxurious and expensive interiors and the best of customer service. CineMax to
enhance the customer experience started a call center hub at Mumbai called “Noline” to provide
information about screenings at its theaters, enable telebookings, etc.

DT Cinemas, a wholly-owned subsidiary of the DLF Group, operates multiplexes in Delhi,

Ludhiana and Jalandhar and Gurgaon. DLF planning to set up another 120 malls in different
parts of the country and DT Cinemas would be the chief attraction in most of these malls. Today
DT Cinemas has seven operational multiplexes with 22 screen and they have plans to invest Rs
1,250 crore to open 500 screens in the next 4-5 five years. DT Cinemas has presence in NCR
Ludhiana, Jalandhar and Chandigarh and apart from the north Indian cities, DT Cinemas also
plans to set up multiplexes in Hyderabad, Chennai, Kochi, Bangalore, Mumbai, Pune,
Ahmedabad, Goa and Kolkata.

Apart from the existing multiplex chain the industry veterans like Mukesh Ambani is also
venturing in this sector. Mukesh Ambani’s Reliance Retail and Yashraj Films may float a 74:26
JV to set up multiplexes run entertainment channels and produce content for television
channels. The will use the upcoming malls of Reliance Retail nationwide to set up multiplexes.
Wave cinemas, yet another multiplex chain promoted by the Chadha group, had multiplexes in
Lucknow, Noida and Kaushambi have aggressive expansion plans.

Sustainability
Technology improvements are likely to be at the forefront in driving the growth of the Indian
Film Industry into the future. Going Digital would be the mantra for s industry over the next
two-three years. It will help multiplex deliver quality content to consumers at a faster pace and

9
at a more economical price. Though multiplex has favorable environment for growth but there
are a few negatives working against the growth of the multiplex industry in the country.

Entertainment Tax withdrawal is one of the biggest concerns for the multiplex industry as
success of a multiplex business model in terms of financial viability hinges to a great extent on
the entertainment tax exemptions being received by them. The other serious concern is risk of
timely execution of planned projects. PVR, Fame, INOX, Adlabs in past have faced problem of
delay in handover of the completed civic shell by the developer and delays in getting the
necessary clearances from the government. The other big concern is movie piracy, which has
reduced the theatrical window period. The movie piracy eats film industry revenue by almost
14%. This has encouraged the industry to reduce the theatrical window period and release the
film faster on other movie viewing platforms like satellite, DVD. Moreover, Multiplex revenues
are seasonal in nature as the production houses prefer to generally release big-budget films

During the summer holidays or during the festive season to attract maximum umber of patrons
to the cinema halls.M&M is also entering in cinema industry.

Conclusion

Multiplex, in India, is the new business model for the film exhibition industry. It is transforming
movie viewing habits in India. It is set to take over a significant slice of the entertainment
market of India. Today multiplexes constitute just 1% of the total number of cinema halls, and
4-5% of the total screens in India. The industry experts believe that it is beginning of the end of

10
single screens in India as the multiplexes with certain advantages such as multi-screen potential,
flexibility in operations; scope for other commercial viability will rule movie exhibition
business in Indian.

1. Intro about company

• Bioscope Cine malls is a chain of value cinemas proposed to

be set up in the Tier 2 & 3 cities of India, attached to a retail /
mall complex with food and shopping as additional attractions

• The primary aim is to provide a great cinematic experience

that is comparable to the best in the industry at an unbeatable
price point

• Ideally, Bioscope would be positioned somewhere between the

plush Metro-Centric multiplex and the old single screen cinema
in small towns across North and West India.
• Ever since it’s opening on the January 18th 2008, the film
collections have beaten most of the plush multiplexes like
Inox, EP, First Cinemas, Cinestar Adlabs, Galaxy Adlabs & Fun
located in the capital city of Jaipur, which is an achievement

11
 considering that Jaipur being a capital city is an “A” center
while Jodhpur is a “B” center.
• Ajmer Second Floor slab completed, Third Floor slab in
progress.
• For Bhilwara and Pali footing completed, base slab in progress.
• Sikar registry completed. Drawings to be submitted for
approval.
• Kota Registry completed, changing of building parameters
in
• Process with RIICO. Design being altered.
• Beawer Registry done on 19th Jan ’08. Designs being finalized.
• Chittorgarh land purchase / conversion in final stage, purchase
and registry will be done after this.

About E- City Bioscope Entertainment Pvt ltd

Vision- Bioscope Cinemas aims to provide a consistent and unmatched customer
experience at value prices to become the preferred entertainment destination in developing
towns across India.”

Mission-
Our Mission is to create around 250 screens under the ‘Bioscope’ brand by 2013/14
through:

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• a multi- pronged strategy and versatile business model that will deliver growth objectives
profitably
• building a system and process driven organization focused on speedy and efficient project
execution and
• delivering a memorable cinema viewing experience at an unbeatable customer value /
price point

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 HEAD OFFICE- MANAGEMENT TEAM

• Multiplex Industry - CURRENT SCENARIO

India's craze for films has not been fully exploited by the "Film Exhibition" industry due to the
lack of screen density in the country coupled with the poor quality of screens. "Multiplex
Cinemas" offer an alternative to tap this potential by providing a quality experience to the
viewer as well as economies to the multiplex operator.

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"Films" has been one of the integral components of the Indian entertainment industry
contributing nearly 27% of the total revenues of the entertainment industry. Besides, films also
contribute to other components of the entertainment industry like music, television and live
entertainment. The Indian film industry is one of the most complex and fragmented national
film industries in the world comprising of a number of regional film industries like Hindi,
Tamil, Telugu, Kannada and others. The Hindi film industry is the most popular among them.
Though India produces the largest number of films in the world (Approximately 1000 per year),
it accounts for only 1% of the global film industry revenues. In spite of being over 90 years old,
the Indian film industry was accorded the status of industry only in 2000. Over the years, the
Indian film industry has been highly unorganized as film financing was dependant on private
and individual financing at extremely high interest rates. Only recently, the industry has got
access to organized finance. With vertical integration taking place between producers,
distributors, exhibitors, broadcasters and Music Company’s corporatization is now taking shape
in the Indian film industry. We believe, that corporatization, will bring about transparency,
accountability and consolidation which will help to improve the overall profitability of the
Indian film industry as well as reduce piracy and leakages which presently account for 14% of
the Indian film industry's revenues.

Now when we talk about multiplex, the movies playing at theatres or multiplexes is also called
as film exhibition. Multiplex industry is based on film industry, so film industry should not be
untapped in the project.

An outline of film industry –

1. The Indian film industry is biggest in terms of number films produced in a year.
2. When we compare revenue with U.S. film industry which was US$9.49 billion in 2004
and revenue of Indian film industry was Rs.59 billion i.e. U.S. $ 1.3 billion.

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 3. In 2005 the film industry revenue rose to about rs 72billion.
4. This is because of the mushrooming of multiplexes across India.
Film Industry – Overview

12%
4%
9%

2% 57%
2%
14%

Domestic Theatrical Leakages Piracy Cinema Ads

Music Satellite DVD/VCD
Overseas Theatrical

Nearly 80% of Indian industry revenue comes from domestic and overseas theatrical; this
clearly signifies the onset and potential of multiplex in Indian film exhibition sector.

Figures to emphasis on-

The gross box office in India, stood at rs.465cr in 2004 and rose by 37% to rs.640cr in 2006
Industry can be divided into two segments-
- single and double screen cinemas
- Multiplex cinemas i.e. three screens or more.

As of march, there were approximately 11,000 cinemas in India of which 73 were multiplex
with total of 276 screens. In 2007, this number rose to 117 multiplex with 436 screens.

16
Multiplex constitute only 2.3% of about 11,000 cinema halls in India, but they collect around
28% to 34% of the box office take care for the top 50 films in 2007.
More than 100 additional multiplexes with 300 screens are slated to commence operations by
end of 2007, a growth rate of 80-100%
An increase in the number of multiplex screens should result in an increase in film exhibition
revenues, so the opening of new multiplexes represents a significant growth opportunity for the
industry.
Number of screens per million -

140
120
100
80
60 117
40 77
52 53 61
20 43 45 46
30
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In India average number of screens per million of population is just 12 compared to an average
of 58 in western countries.
India needs approximately 20,000 screens to cater the entire cinema viewing population.

FILM EXHIBITION INDUSTRY:

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Source - GEOGRAPHIC DISTRIBUTION OF THETRES ACROSS INDIA – FICCI-
E&Y REPORT 2004

1. Andhra Pradesh has the maximum number of theatres.

2. 50% of the total theatres are in Andhra Pradesh, Tamil Nadu and Kerala

 THE FILM EXHIBITION INDUSTRY – MULTIPLEX

Number of Number of Number of Seats Per

multiplex screens seats Screen
3 screens 64 192 67,200 350
4 screens 34 136 40,800 300

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 5 screens 9 45 13,500 300
6 screens 7 42 10,500 250
More than 6 3 21 4,494 214
screens

117 436 1,36,494

Majority of multiplexes have 3 screens.

Key players-

Six companies are emerging as major exhibitors, with expanding, albeit still relatively small,
circuits. All are intending to develop countrywide circuits and all, except E-City Ventures, have
completed initial public offerings to fund their extensive construction plans.
The six companies in the table below and two other digital cinema operators are profiled in
more detail below. There are numerous other small multiplex operators developing on a
regional basis and in future many of these will be acquired when the market moves towards
consolidation.

In 2007 DT Cinemas, owned by DLF Group, announced a partnership with Warner Bros and
Sony Pictures to develop multiplexes. It plans to build 200 screens by 2010. Wave Cinemas,
Sathyam and Velocity also have expansion plans. In addition, the South Korean exhibitor,
Megabox with Standard Chartered Private Equity, is reported to be investing in an Indian
operator.
Company No. of properties No. of screens

PVR cinemas 14 101

Adlabs 65 170

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E City Cinemas 9 27
Shringar 7 21
Inox 24 84
Wave cinemas 3 9

Cinemax 19 56
Fame 16 61

Six largest multiplex operators of India operate 162 screens across 25 properties with capacity
of 56,700.

These six multiplexes constitute 46%, 37% and 41% of India’s total multiplex properties,
screens and seats respectively.

• KEY PLAYERS IN MULTIPLEX

 PVR CINEMAS:

• Strong operational performance- PVR is one of the leading multiplex operators

with very strong performance on operational parameters. The company has been
able to establish itself as one of the premier entertainment destinations, which has
resulted in the highest occupancies, footfalls and spend per head as compared to all
of the other multiplex operators.

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• Aggressive expansion plans- PVR intends to open ~100 screens in the coming
two years. We are assuming a 50% discount to these plans for our estimates, in
order to rule out mall delays. Among the new screens, 20-30 will be high end PVR
Premiere screens with ticket prices in the range ofRs150-Rs750. It has already
opened 17 out of the total 30 screens that we expect for FY09E, thus providing
more certainty to our estimates.

• Foray into co-production- PVR has, through PVR Pictures, entered into film co-
production, after its first movie met with beginner’s luck. It has 4 movies lined up
for FY09E and intends to ramp it up to 8-10 movies in FY10E. We expect the
movie business to operate at 13% EBITDA margin and contribute 11% to the total
revenues by FY20E.

• Leading Multiplex operator: PVR is one of the leading multiplex chains in India
with 101 screens under operation in 14 cities at present. PVR has been successful
in building a lifestyle entertainment brand because of its focus on customer service
and quality of experience. Because of the strong brand and presence at prime
locations, PVR has found a very encouraging response from the customers. It
attracted 18 million patrons with occupancy ratio of 41% in FY08, both the highest
numbers among all the multiplex players. Today, it contributes ~10% plus to the
total domestic box office collections in the country, showing a clear dominance.

• PVR Premiere to increase ATPs: The Company has recently started a chain of
luxury cinemas branded as PVR Premiere which will be present only in the metros
and other affluent cities. These screens provide a very high quality digital cinema
viewing experience in luxurious setting. Average ticket price for these screens is in
the range of Rs150-Rs750, as compared to the normal ticket price of Rs70-Rs250.
From 2 screens at present, PVR Premiere will reach 30 screens by FY10E which
will help increase the overall ticket revenues.

• JV with Major Cineplex to strengthen presence: PVR has formed a 51:49 JV

with Major Cineplex, the largest exhibition player in Thailand, to further
strengthen its presence in the lifestyle entertainment space. The entity, branded as
PVR Blu-O Entertainment, will open bowling alleys, karaoke centers, ice skating
rinks and gaming zones across the country. We believe that this venture is a well
thought out move and complements well PVR's positioning as a leading out of
home entertainment provider. With a strong and experienced JV partner like Major
Cineplex, execution will be fast paced. However, due to a recent start, we are not
factoring in any of the traction from this initiative as of now.

21
 • Entertainment tax burden to decline: PVR started its operations from those
territories where entertainment tax exemption was not available, e.g. Delhi NCR
region. At present, it pays E-tax on 16 out of a total of 22 properties. E-tax as % of
gross ticket revenues is amount the highest for the company at 24% in FY07.We
expect E-tax % to come down to 18% in FY09E and 17% in FY10E due to more
screen additions in areas where E-tax exemption is available like Punjab, West
Bengal and Mumbai. Recently, Delhi government has lowered the entertainment
tax rate to 20% from the earlier 30% levels. This will help PVR the most as it
operates 46 screens in that region.

2. INOX LEISURE

• Consistent performer- Inox has shown impressive operational performance,

delivering a 65%CAGR in topline in the past 5 years with the highest EBITDA
margins in the multiplex space. The company has shown remarkable pace of
expansion in the last 3-4 years with commendable speed and quality of execution

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• Expansion in tier I and tier II cities to be value accretive- Inox has more than
50% of its screening the tier I and II cities, which has rewarded the company very
well in the past. It plans to add ~100screens in the coming 2 years, 70% of which
will come up in select tier I and II cities. We believe that the move will create value
for the company as these locations are comparable to metros at the EBITDA level.

• Impressive capacity ramp-up over the last 4 yrs: Inox Leisure (Inox) was set up
as part of a diversification strategy by its parent company, Gujarat Flurochemicals.
The company opened its first multiplex in Pune in 2002. Since then, the company
has come a long way as one of the leading premier multiplex chain operators with
a strong brand recall. Starting from just 4 screens in 2002, Inox has ramped up its
presence to 84 screens in 24 locations at present. While registering a strong
capacity growth in the past 4 years, the company has also been very successful in
building a strong entertainment brand for its cinemas. Operating in an industry
marked by execution delays, both the speed and the quality of expansion are
commendable considering that the promoters didn't have prior exposure to the
exhibition industry.

• Top 25 cites - compelling growth stories Crisil Research has identified 25 cities
where consumption potential is high due to the strong economic growth and
increasing urbanization. Taking organized retail market size as a proxy for future
growth potential, they have identified 25 locations that have the potential to
become high consumption centers in the next 3-4 years. This combined with the
past experience of the company shows that there is a lot of room for leisure
consumption at these centers and hence the move into these cities will be value
accretive.

• E-Tax exemptions: Inox operates 24 properties but pays entertainment tax only on
7 of them. 13 properties are fully entertainment tax exempt and 4 are availing
exemption partially. This has resulted in an E-tax payment of 10% as a proportion
of gross ticket revenues during FY07. It has risen to 14% in FY08as it opened two
non E-Tax exempt properties and 2 of its properties became eligible to pay E-Tax.

• Move to create value for the company: We believe that the expansion in these
locations is a well thought out move and will create value for the company. While
it's true that the average ticket prices in these locations are lower than those in the
metros, it gets compensated with far lower rentals and staff expenses on the cost
side. Moreover, it gives the company access to prime locations in these cities
which provide assured footfall growth has the company has seen in the past.

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3. FAME INDIA

• Fame India (Fame) is one of the smaller multiplex operators among the listed
Indian exhibitors, with a current slate of 16 properties and 61 screens under
operation. Boasting of a predominantly urban presence, especially in Western
India, Fame has been disproportionately focused on Tier-I cities. With 8 of its
currently operational 16 properties located in Mumbai, Fame is looking to
aggressively add to its existing screen count and establish a pan-Indian presence.

• Heavy skew of properties towards Tier-I locations: 8 of the company's currently

operational16 properties are situated in Mumbai, with three more lined up before
Mar'09. This translates into Mumbai accounting for a whopping 42% of the
company's proposed seat count (by Mar'09). In fact, the two Western states of
Maharashtra and Gujarat are likely to account for 75% of the company’s seat count
by Mar'09. This skew towards Tier-I cities is likely to translate into marginally
improving ATPs in the near-term on a full-year basis from FY09 onwards. Fame
currently commands an ATP of~Rs97, a discount of 21% and 24% to that of Inox
and PVR respectively.

• Scale to bring in margin expansion triggers: Fame is among the smallest

exhibitors in the multiplex space currently. As of FY08, Fame commands fairly
low EBITDA margins essentially because of a low scale of operations. Given the

24
 high degree of operating leverage (characteristic of the business), we believe that
EBITDA margins would improve once the company is able to expand its screen
and seat count.

4. ADLABS FILMS

• Integrated Play on the Media & Entertainment Sector: Adlabs is the only
player at present that has presence in all of the three major segments in movies i.e.
production, distribution and exhibition. The integrated model adopted by Adlabs
gives it a competitive edge over others in terms of capturing value at each level of
the value chain. However, it also exposes the company to more risks as risks of one
segment are prone to disturb the other segments.

• Exhibition Segment - The largest player: Adlabs has 170 screens at 65 properties
under operation at present, making it by far the largest player in the exhibition
space. It has a two pronged strategy of expansion - opening multiplexes at the
prime locations in the metros and other cities and expanding through renovating
existing single screen theatres in the tier II and III cities which has helped the
company add more than 100 screens in the last two years.

• Expansion through acquisitions: Since ADAG group has picked up the majority
stake in the company, it has shown even more aggression in its expansion plans by
acquiring Rave Cinemas, chain of multiplexes in India and Lotus Five star, an
exhibition player in Malaysia. Both of these acquisitions have given Adlabs a head
start in its expansion plans as compared to other players

25
• Future Plans: Adlabs has forayed into production and distribution of film and TV
content since 2005. It plans to release 6-7 movies per year with varying genres and
budge. On the T.V. content side, it has produced 8 shows adding up to 214 hours of
programming in FY08. In the next year, it plans to launch 15 shows on commission
basis.

• Film Processing - Leader controlling 70% of market share Adlabs started as an

ad films processing facility. The company has made fast strides in this business and
today controls 70% of the film processing market in the Western part of the
country. It has set up film processing facilities in Chennai and Kolkata to tap
growing regional markets there. The company has been awarded Kodak Image care
Program Negative Processing Accreditation recently. This establishes the film
processing division among some of the highly equipped units globally, thus
opening doors for business from other countries. The film processing division is a
high margin business contributing 70% to the total EBIT in 9MFY08. With the
growing fold of the company in film entertainment business, this division is
expected to benefit in the coming years.

• Film Production & Distribution: Adlabs entered the production business in 2005;
the company recently released its first home production Johnny Gaddaar. Adlabs
has signed long term contracts with key Bollywood talent like Vipul Shah, RGV,
Harry Baweja, Akshay Kumar, and Ashok Amritraj. It plans to release 6-7 movies
per year with varying genres and budge. On the distribution front, it is present in
Mumbai, Maharashtra, Gujarat, Delhi, UP, Punjab, Bengal, Tamil Nadu,
Hyderabad and My sore territories. These states contribute around 80% to the
domestic box office collection. Some of the movies distributed by the company
include Guru, Black Friday, Bheja Fry Spider-Man 3, Vivah and Harry Baweja
Love Story 2050.It has set up strong overseas distribution network through its US
and UK subsidiaries. In addition to this, the company has mandate to distribute all
films produced by Reliance Entertainment Big Motion Pictures.

• T.V. Content Production: Adlabs acquired a 51% stake in Synergy

Communications, which is a well known content production house for television,
associated with famous game shows like Kaun Banega Crorepati, Mastermind and
Jhalak Dikhhla Jaa.The division produces only commissioned programmers and
has produced 8 shows adding up to 214hours of programming in FY08. In the next
year, it plans to launch 15 shows including Dus Ka Dum,Aap Ki Kachehri, Bindass
Champ, Kya Aap Panchvi Pass Se Tez Hai, Angrezi Mein Kehte Hain.

26
 • Adlabs has shown the most aggression in its expansion plans so far, mainly
because of access to the deep pockets of ADAG group. It has entered into an
agreement with Rave Entertainment to acquire the right to conduct cinema
exhibition business at the 23 screens that the group is developing in NCR, Uttar
Pradesh, Punjab and Haryana. This gives the company access to 6 properties, 4 of
which are tax exempt. Recently, the company has acquired majority skate in
Malaysia-based Lotus Five Star Cinemas and will be operating a 51 screen cinema
chain in across Malaysia. The chain will be catering to the Indian, Bangladeshi and
Pakistani population in the country by playing Hindi and Tamil films along with
Hollywood, Chinese and Malay movies.

5. CINEMAX

• Cinemax India (Cinemax) is one of the smallest multiplex exhibitors within the
listed space with 56screens across 19 properties, a majority of them concentrated in
the Mumbai territory. The company has a predominant presence in the Western
region and is the largest exhibitor in the Mumbai territory with a 35% share of the
multiplex screens in Mumbai. Cinemax is now focused on expanding its presence
across the rest of India and is seeking to aggressively add capacity across other
regions

• Aggressive capacity addition plans: The management at Cinemax has guided for
adding 41screens during FY09E followed by 72 screens during FY10E. The

27
 company employs two criteria for selection of properties: a payback period of less
than 4 years and a target RoE of 18-20%.

• Tapping ancillary revenue streams: Cinemax has been actively seeking means to
tap ancillary revenue streams by foraying into the branded food court business and
the gaming business. In an effort to reduce its over-dependence on ticket sales (that
currently contributes 70% of the operating revenues), the company is focused on
adding other ancillary revenue streams to bolster the spender head from current
levels. Cinemax is targeting F&B contribution within overall revenues to increase
by about 300bps from current levels of 14%.

• Leased operating model to help improve margins: Among the 19 properties that
Cinema currently operates (as of Jun'08), 8 are owned while the other 11 are
operated on the leased model. With more properties being added on the leased
model, the proportion of owned properties within the overall mix would reduce.
This shift is likely to push the rentals up by about 600bps (from 8% of the topline),
which is likely to be offset by an equivalent decline in overheads such as personnel
costs and administrative expenses.

• Future expansion plans: On the exhibition front, Cinemax intends to add 41

screens duringFY09E and 72 screens during FY10E. The company has also
forayed into the movie distribution space with 'Kismet Konnection', which is
scheduled for an all-India release on 18th Jul'08. Cinema has acquired the
distribution rights for the Mumbai and Punjab territories. The company also
intends to form a separate SPV for movie production with a total investment outlay
of Rs1bn over the next two years. Cinemax plans to raise Rs1bn for this initiative
of which Rs700mn will be spent towards production and the rest towards
distribution. At its CMP of Rs87, the stock is currently trading at 18x its fully
diluted FY08 EPS of Rs4.91. We do not have a rating on the stock

• Property selection criteria: Cinemax applies two criteria for selection and
addition of properties to its existing count. Firstly, the company targets an Roe in
the range 18-20%. Secondly, Cinema targets a payback period of less than 4 years
for selection decisions. The management has guided for the following seat /
property matrix over the next 3 years.

28
Some small players –
Shringar Group
Shringar Group was formed in 1999 by the Shroff family. It operates an exhibition business,
Shringar Cinemas, a distributor, Shringar Films and a food court business called Big Pictures
Hospitality Services. Shringar Films is sole distributor for Paramount Films of India in the film
territories of Maharashtra, Gujurat (excluding Mumbai and its suburbs), Central Province and
Central India.

In 2001 the company obtained private equity funding from GW Capital. Further funds were
raised in April 2005 with an initial public offering on the Indian stock exchange. Of the INR
431.9 million raised, INR 337 million was earmarked for expanding its cinema circuit and INR

29
60 million for investing in its distribution business. As some building projects have been
delayed, some funds have been used to repay debt. In April 2006, Shringar Group raised US$20
million as a Foreign Currency Convertible Bonds issue, equivalent to INR 901 million. INR 266
million will fund building new cinemas while INR 70 million will go towards refurbishing
existing cinemas.
Despite the sums mentioned above the company’s cinema circuit is still relatively small. At
October 2007 it operated 13 cinemas with a total of 44 screens under the FAME brand name.
Shringar Cinemas’ strategy is to focus on large metropolitan cities including Mumbai, Pune,
Bangalore, Chennai and Kolkata where there is a larger middle class audience base and a higher
average ticket price can be obtained. It is also looking at potentially untapped areas and may
acquire some single screen cinemas in order to consolidate its position in some locations.
Revenues from exhibition grew 87% between the financial years 2006 and 2007, while income
from concessions grew by 79% due to new cinemas coming into operation. The big gain in
other income was due to receiving a large entertainment tax rebate and exchange rate gains
from the bond issues.
E-City Ventures
E-City Ventures is part of the Essel Group, a major conglomerate with interests in media,
entertainment, packaging and technology. At July 2007 E-City Ventures operated 14 cinemas,
with a total of 50 screens under the brand name Fun Cinemas. The company has targeted
affluent city suburbs for its sites.
The company has rapid expansion plans announcing that it will operate 1,550 screens by 2011:
300 in its premium multiplex Fun Cinemas circuit; 250 in a lower value branded circuit called
Talkie Town and 1,000 digital screens. It will invest INR 8 billion in new cinemas.
A subsidiary of E-City Ventures, E-City Films, releases 15 to 20 Hindi films a year and has
plans to distribute up to five other Indian language films in markets such
as Andhra Pradesh and Tamil Nadu. The company also distributes independent English
language films such as Million Dollar Baby, Alexander and Babel.

30
Its digital cinema arm, E-City Digital was formed in 2004. At July 2007 its digital network
totalled 90 screens. The company’s strategy is to provide end-to-end encryption, distribution
and projection technologies for cinemas. It will either lease cinemas on a long-term basis,
revenue-share or simply install a digital system for a service fee. Equipment can also be bought
on hire-purchase.
.

Pyramid Saimira
Pyramid Saimira entered cinema exhibition in November 2005. Rather than building new
cinemas the company’s strategy is to purchase or lease, upgrade and manage existing cinemas
equipping them with e-cinema technology and forming a Mega Digital Theatre Chain. It also
distributes films to its network of cinemas.
The company has formed agreements with Real Image for servers and software; Prasad Labs to
convert films into HD format; TataNet, a telecom’s provider to network its cinema circuit,
Arasor International for laser projectors and integration of hardware and software; and Bharat
Digital for projectors.
Although its strategy is different to its competitors, it has accessed funding in the same way. In
December 2006 Pyramid Saimira listed on the Bombay and National Stock Exchanges and
raised INR 84 million with its initial public offering. This money is to be used to renovate
cinemas and install digital equipment. Citigroup Venture Capital invested US$ 100 million in
private equity in September 2007 and the company completed a US$ 90 million issue of
Foreign Currency Convertible Bonds. Proceeds from the issue will be used for foreign
acquisitions.
Pyramid Saimira is expanding and diversifying rapidly. It currently operates 371 screens
primarily in the Southern Indian states of Tamil Nadu and Andhra Pradesh and has begun
targeting Karnataka and Kerala. By 2010 Pyramid Saimira plans to manage and operate 2,000
screens and franchise out a further 4,000 in India. It is entering the food court business and

31
intends to open ten food courts by March 2008. It will also have online marriage bureaux
owned by Kalyana Malai situated in its cinemas.
The company has also begun expanding overseas. Pyramid Saimira has formed a subsidiary in
Singapore focusing on producing and distributing Indian films and content. It has formed a joint
venture in Malaysia with the film distributor and real estate operator, Asian Integrated
Industries, to establish a 150 screen digital cinema circuit there and distribute films across it.
Finally, in November 2007 it purchased the American cinema circuit, radio station and
magazine, FunAsia.

UFO Moviez

Founded in 2005 UFO Moviez is a subsidiary of Apollo International owned by entrepreneur

Raaja Kanwar. The company installs e-cinema quality digital cinema systems and distributes
digital films along its network. Currently UFO Moviez has a network of 918 screens and plans
to take this to 2,000 by the end of 2008. UFO Moviez has also branched into digital cinema
advertising under the brand name Value Ads.
In January 2007 the company received US$ 22 million from the private equity firm 3i to help
finance its expansion plans. It is also looking at expanding overseas into Mauritius, Sri Lanka,
Dubai and Europe.

Multiplex growth drivers

Multiplexes have several advantages as compared to single screen cinemas
• Multiplexes have access to prime locations as a large number of mall developers are
consideringsetting up movie theaters to attract footfalls in the mall. Multiplex operators

32
 are emerging as anchor tenants for malls and are therefore being offered attractive rental
rates.
• Multiplexes offer a large variety of movies for their viewers as a number of movies are
running simultaneously in a single property. Typically, 7 movies can run simultaneously
in a 4 screen multiplex.
• Occupancies in multiplexes are higher as compared to single screen cinemas as the
seating capacity per screen in a multiplex is lesser than that of a single screen cinema.
• Different screens in a multiplex have different seating capacities. The multiplex operator
can therefore choose to show movies on a larger or smaller screen based on the expected
potential of a film. Besides the multiplex operator can also choose to show movies on
larger screens in the first few weeks of release and later continue to show this film on a
smaller screen.
• Multiplex operators can charge different prices depending on the time and popularity of
the film.
• A multiplex operator can maximize the number of shows as multiple films are available
for screening. Based on the screening duration of different films, the multiplex operator
can efficiently programme his shows to maximize the number of shows and thereby
generating higher number of patrons.
• Multiplex operators use common manpower for several screens and hence have better
cost efficiencies.
• Multiplex operators can offer a wide range of food and beverages as multiple screens use
common food and beverage facilities. This wide range helps in increasing the F&B spend
per patron.
• Multiplex operators can achieve significant operating efficiencies due to better film
management and common vendor relationships.

33
 • Due to the large number of screens, multiplex operators have better bargaining power
with distributors.
• Entertainment tax, levied by the state, is the main levy on the exhibition industry. This
varies from 30% to 100% of the net ticket price from state to state. Recently certain states
have announced entertainment tax holidays for newly constructed multiplexes. This is
likely to increase the profitability for these multiplexes.

Drawbacks of a Multiplex
Multiplexes charge a 30%-50% premium on ticket prices as against standalone cinemas. This is
one the major drawbacks of multiplex operators as multiplexes attract only a section of the
society consisting of the Rich and Upper Middle class. The premium charged by multiplexes is
for the better ambience as well the high quality audio and visual effects.
In certain areas, multiplexes have become a cause for traffic jams. People residing near
multiplexes find this to be a nuisance. To set up a multiplex, a series of approvals and licenses
have to be acquired by the mall developer as well the multiplex operator. This is due to the
heavy regulation imposed by state governments. These regulatory issues are a cause of concern
as they cause delays in setting up a multiplex.

Emergence of tier 2 and tier 3 cities-

34
Initially ,multiplex projects were started in the metros due to the availability of an assured
audience.more recently ,indias multiplex bandwagon has gone beyond the metros to redefine
entertainment in ‘B’ and ‘c’ class towns.while the first phase saw emergence of multiplexs in
metro and now this growth is spreading to tier2 and tier3 cities like
lucknow,indore,Aurangabad,Kanpur,jaipur. Indian retail is buzzing not only in big cities and
state capitals, such as Chandigarh, Lucknow and Jaipur, but also in small towns such as
Visakhapatnam, Mysore, Agra, Mangalore Allahabad and Kanpur, that might contribute to
nearly half of retailers’ income by the early part of the next decade.If the bigger cities are
getting 15-20 malls in the space of the next five years, then the small towns are expected to see
around six to ten malls coming up in the same period.“One reason that retailers are moving to
smaller cities is that operating costs in these cities and towns are much lower than metros,
giving them an extra 3-4% margin,” says Gibson Vedamani, the chief executive officer of
Retailers Association of India, the industry lobby.With the information technology and related
service “generating enough employment for the youth, this section of the population is
becoming the primary target for retailers,” Vedamani said.
The other driver for the retail rush to these small towns is the rapid growth of the residential
segments, says Anuj Puri, chairman of Jones Lang Lasalle Meghraj, a real estate consultant
firm. “It is the rising demand for housing in these cities that is fuelling growth—with housing
comes the demand for commercial (office) and retail destinations.”
Puri’s firm recently released a report on the retail industry in the country that named seven
cities—Chandigarh, Ludhiana, Jaipur, Lucknow, Kochi, Surat and Vadodra—as high growth
destinations for retail. It identified 16 others as emerging destinations—Amritsar, Indore,
Jalandhar, Mangalore, Nashik, Bhubaneshwar, Agra, Visakhapatnam, Coimbatore, Goa,
Mysore, Jamshedpur, Thiruvananthapuram, Allahabad and Kanpur. Kishore Biyani’s
Future Group for instance, is planning to take nearly all its formats—lifestyle and budget stores
—to cities such as Indore and Nashik. The group owns brands such as Big Bazaar, Pantaloons
and Central. “There is a demand, though it is limited as of now. Only 20% of the population in

35
these towns would actually shop in a mall. But we have to be present there to tap the market in
the coming years,” says Biyani. Both Biyani and Puri say that over the next 5-7 years, retailers
will see up to 50% of their incomes coming from these towns.
There are 500 malls coming up all over India, according to estimates by Parklane Properties
Pvt. Ltd, a Mumbai-based property advisory firm. Cities with as small a population as 2.5
million have 6-10 malls coming up, according to Parklane managing director Akshay Kumar.
While larger tier III cities such as Chandigarh will get 15-18 malls, smaller towns such as
Aurangabad and Nashik will get six to ten malls, while Chhattisgarh’s capital Raipur will get at
least four.
Kshitij Investment Advisory Co., the mall development fund from the Future Group, is setting
up 11 malls in tier II, or smaller, cities.
West Pioneer Properties is developing large malls in small cities, as is Prozone, a subsidiary of
men’s clothing manufacturer, Provogue.
Westside, the department store chain of Trent Ltd, set up its first franchised stores to enter
smaller markets such as Mysore and Raipur.
“Bigger markets are slightly more saturated than smaller markets,” said R. Subramanian,
managing director of Subhiksha Trading Services Ltd, which runs more than 670 convenience
stores. At Subhiksha, 40% revenues and 40% space come from cities that are not state capitals.
At Vishal Mega mart, the discount store chain of Vishal Retail Ltd, 80% of revenues come from
tier II and III cities—which is also where they are mostly based. Prozone is planning to develop
malls in cities such as Aurangabad, Surat, Rajkot, Mysore and Indore.
Mumbai’s K. Raheja Group, which owns brands such as Shoppers’ Stop, is planning to invest in
250 convenience stores, most of which will be in smaller cities, while Reliance Retail is
planning around 1,600 stores in rural areas.
International mall developer Plaza Centre’s is another developer who is looking closely at tier II
and III towns. “While there isn’t huge number of consumers in these towns, the conversion rate

36
is much higher than those in cities,” says Vedamani, noting that around 70-75% of visitors end
up buying from retail outlets in smaller places, whereas, in large cities, it is around 50-55%.

This article basically supports and informs that small cities are now the major destinations for
the development, and each and every business that has to survive will have to start its journey
for the bottom of the pyramid.

Growth drivers for multiplex in tier2 and tier3 cities-

1. Favourable demographic changes.
2. Increase in disposable income with expanding Indian middle class people.
3. Organized retail boom.
4. Entertainment tax benefits for multiplex cinemas.
5. Good quality of hindi cinemas.

Way forward –
1. In next 18-24 months, 6 of the largest multiplex operators in India mentioned earlier are
likely to commercialize approximately 150-180 additional screens spread across 50-60
new multiplexes.

2. These multiplexes will have a cumulative seating capacity in excess of 60,000 – 75,000.

3. There will also be an increase in number of multiplexes operated by smaller players, who

constituted 66% of total multiplexes as of march2005.

4. There will be an increase of 50% operating multiplexes by end of 2008.

37
 5. By end of 2008, 170+ multiplexes will house more than 1, 60,000 seats spread across
540+ screens.

6. These multiplexes will have a significant positive impact on film production, financing,
distribution and exhibition and other markets.

Tax benefits –
1. In order to encourage investment many state governments have announced policies
offering entertainment tax benefits.

2. Tax benefits have encouraged the growth of multiplex cinemas and also single screens
conversion.

3. Tax rate depends on certain conditions specified by particular state.

Concept of value cinema –

• Bioscope mall’s value cinema proposition-Bioscope Cinemalls is a chain of value
cinemas proposed to be set up in the Tier 2 & 3 cities of India, attached to a retail /
mall complex with food and shopping as additional attractions
• The primary aim is to provide a great cinematic experience that is comparable to
the best in the industry at an unbeatable price point
• Ideally, Bioscope would be positioned somewhere between the plush Metro-Centric
multiplex and the old single screen cinema in small towns across North and West
India

Scope for bioscope

38
Given that there are little or no means of entertainment in ‘B’ and ‘C’ class towns, there is a
huge potential for multiplexes. The rising prominence of smaller towns can be gauged from the
fact that movie stars are touching down at these places to promote their films. After two years,
non-metros will clearly will be clearly be the drivers of film exhibition companies.
At present as much as 65% of the total box office collections in the country come from non-
metros and the ratio is likely to change to 30: 70 metro – non metro in three to five years.with
box office collections from non-metros, expected to move up one cannot ignore the smaller
towns.

 Positioning of bioscope multiplex. – Graph

39
 High Density
Network

Premium Cinema Value Cinema

Low Density Network

Bioscope cinemalls is a chain of value cinemas proposed to be set up in the tier2 and tier3
cities of India, attached to a retail/mall complex with food and shopping as additional
attractions.
Now the primary aim is to provide a great cinematic experience that is comparable to the
best in industry at an unbeatable price.Bioscope will be positioned somewhere between
the plush metro-centric multiplex and the old single screen cinemas in small towns across
north and west india.

 Targeted cities and locations…..

E-city bioscope is targeting the selected states on the basis of market value, growth, exemption
in entertainment tax & electricity tax, easiness in property development, demographic &
geographic strength, and upcoming growth in terms of reality & retail, and so many others
miner things.

40
E-city bioscope is targeting Rajasthan, Madhya Pradesh, Gujarat, Haryana, Punjab,
Maharashtra, and Chhattisgarh to open a cinema cum activity centre.
Before it was selecting those cities where population should be more than 5 lakhs but now it’s
targeting those cities where populatation supposed to more than 2 lakhs means Tier 2 & 3 cities
in India where peoples and markets are growing up in terms of reality & retail, Education,
Spending power, house hold income, Easiness in availability of Finance, Economy is high,
growth in industry & service sector, And peoples are ready to adopt Multiplex & Lifestyle
culture.

It’s Targeting to open 250 screens till 2011-12 in these selected States & Cities.
Now it’s focusing on Rajasthan Market where it’s Already Started multiplex Operation in
Jodhpur, Ajmer, Sikar, Pali, Bilwhara, Kota and Beawar and targeting in Udaipur, Bikaner,
Kishangarh, Sriganganagar, Chittorgarh & others cities to open a cinema or multiplex through
j.v, Own a property or On lease.

Then it will be shifted to Madhya Pradesh, Gujarat and next states and markets.
These are followings………..

States 3 LAKH+ 2-3 LAKHS 1-2LAKHS

RAJASTHAN 5 4 5
MADHYA PRADESH 4 3 10
GUJRAT 3 4 17
MAHARASHTRA 13 5 13
PUNJAB 1 1 8
HARYANA 2 4 9
CHATTISGARH 4 3

Total 28 25 65 118

 Business development

 Procedure and Analysis

DESKTOP STUDY ON BIKANER MARKET

41
 City – Bikaner
State – Rajasthan.
Area – 270 sq. km
Central area – 38.10 sq km
Urban Population – 7,23,982 (2008)
Total population- 19.02 lakh (2001)
Literacy rate – 66%
74%- male, 57%- female
Sex- 53% male, 47 % female.
Density – 1960/ sq km
Pin code – 3340xx
STD code – 91151

BIKANER- IMPORTANT DETAILS

s.no Section Quantity Remarks

1. Hotels
a. Heritage hotels 11 hotels Saswant bhawan, bhairon villas, mann
vilas, marudhar heritage etc.
b. Star hotels 1 Hotel raj villas

c. Deluxe heritage hotels 5 Lallgarh palace, bhawan niwas etc.

d. Budget hotels 9

e. Guest house 1

f. Resort, deluxe resort 2

TOTAL HOTELS- 24

2. PETROL PUMPS 7 Hp, bharat petroleum etc.

3. SHOPPING CENTRES ADDRESS

a. Khajanch market Kem road.

b. Jain market Kem road.

c. Ganpati plaza Mg road

42
 d. Bothra complex Alka sagar road

e. Sarbati mansion Mg road

f. prithavi market Talisarbhary ji gali.

g. Vade market Rani bazaar

h. Guru nanak market Labuji ka katla

i. Baba market Near anchar bhi hosp.

4 HOSPITALS

a. Govt. hospitals 3 P.M.B hospital, T.B hosp. , child

hospital.
b. Private hospitals 5 Kothari hospital, m.n hospital etc.

NOTE:- MAHATMA GANDHI ROAD, KATLA KOTE IS MAIN MARKET FOR SHOPPING, KING
EDWARD MEMORIAL ROAD, AND STATION ROAD.

S.no SECTION QUANTITY REMARKS

5. EDUCATION
a. College 14-16 Rajasthan agri. Univ.,
university of bikaner,
bikaner engg. College, etc.
b. Schools 25 (Apprx.)

6. CINEMA HALLS 7-8 Adlabs,Suraj, shriganga,

vishwa jyoti, etc.
7. MUSEUMS 3 Ganga dolden, sadul etc.

8. CLUBS 7 Sadul, railway, rotary, lions

etc.
9. SWIMMING POOLS 4 Sadul club, teja garden etc.

10. AMUSEMENT PARKS 5 Public park, sky bird etc.

11. NEWSPAPERS 4-6 Rajasthan patrika, denik

bhaskar, times of India,
Hindustan times, etc.

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12. VISITING PLACE 9-10 Lallgarh, gajner, junagarh,
karni mata temple, ratna
vihari temple etc.
13. BANKS

a. National bank 19 ICICI, SBI, SBBJ, PNB,

OBC, BOB etc.
b. Grameen bank 2 Bikaner grameen bank,
bikaner urban co-operative
bank
14. RETAIL BRANDS 15-18 Reebok, provogue, vishal-
megamart, Charlie outlaw
etc.

INDUSTRIES- Bikaner, basically have bhujiya and papad, namkeen, woolens, and ceramic
industries.

Some well known indst. – Bathroom fitting, snack food, carpet and shady yarn, cattle feed,
cement, ceramic tiles, cotton textiles, dairy product, groundnut oil, gypsum grindings,
handicrafts items, and leather footwear.

COLONIES – Vyas colony is main colony in no. of plots, rates and locality. Purchasing power is good.

CITY GRADE MPV MII MEI CINEMA MEANS

BIKANER B 17.20(71) 78.57(328) 106.84 56.83 23.45

JAIPUR A 98.33(12) 97.57(73) 103.26 48.37 27.36

PALI C 5.73(204) 73.84(438) 91.37 86.92 27.52

Summary and conclusion:

1. According to that information Bikaner is good in spending power than Pali and other cities in Rajasthan.

2. There is almost every retail brand is available in city.

3. Approximately 70% peoples are dependent on agriculture as living source.

4. There almost every national bank is available like- icici, pnb, and sbi etc. and there 14-16 colleges over there.

44
5. Hospitality condition is good like many hotels and hospitals are there.

Conclusion-

1. as my perception, if any company open a multiplex mall over there, it should be run good because-
A. There is no multiplex and shopping mall over there till now, so good opportunity to grab the whole
market (penetrate) by come first philosophy.
B. Good footfalls in upcoming future

 City Profiling And Market Survey

• Standing operating procedure (SOP) –

 Property procurement -

CHI TTAURG ARH- CITY SNA PS HOT

Located along the north western Aravalli region, Chittaurgarh city is situated about 190
kms of south of Ajmer and 115km from Udaipur. The city is mainly renowned for
Chittaurgarh Fort. The fort is a massive structure with many gateways built by the later
Maurya rulers in 7th century A.D. Perched on a height of 180 m. high hill, it sprawls over700
acres. Due to such characteristics of the city, it has made this town, more significantand
important from tourist point of view.
The earlier development of the town remained confined within the city wall (old city
Area) which was self sufficient with it due to the available infrastructure within the city.
The city started to expand in 19th century after the development of railway line with other
development in the city like government offices, Industrial area and other institutional areas.

45
Chittaurgarh District now comprises of 14 Panchayat Samitis, 13 Tehsils and 8 Sub-
Divisions. It has 8 Municipalities.

At present the city is growing on a fast pace which is indicated by the increase of
Population by nine times as compared to 19th century population. 2001 population for
The city was 96,028 and the growth rate for 1991-2001 for the city has been counted
34.18%. The major factor for the increase of the population is the development of the city’s a
major Industrial and agricultural District which marks the presence of Birla Cements,Aditya
Birla Cements, J.K. Cements, Rajasthan Atomic Power Plant, Hindustan Zinc Limited (Vedanta
Group), Marble Industries and now taking lead in mustard opium and soybean crops. National
Highway 79(Bhilwara-Nimach) and National Highway 76 passes through the city from which
major outflow of traffic happens

46
 • KEY DEMOGRAPHIC DATA
POPULATION 2008: 1, 21,538
SEX RATIO: According to Census 2001, the sex ratio is 966 per 1000 males, for (0-6 age
group) its 927 per 1000 males and for (7+ age group) the sex ratio is 974 per 1000 males.
LITERACY RATE: The Literacy rate of the region is low vis a vis the national average at
54.4% wherein 71.8% is male literacy and 36.4% is female literacy according to census
2001.
DECADAL GROWTH RATE: The decadal growth rate for the decade of 1991-2001 is
21.5%

CITY STRUCTURE AND GROWTH DYNAMICS OF THE CITY

47
City experiences a series of destruction and construction as a result of wars which took
Place in the earlier stages of development of the city. It mainly results in the non uniform
growth of the city. The city started to took its developed stage after the establishment of railway
broad gauge line in eastern zone of the city with other economic developments in the city such
as industrial, institutional and residential developments. The new and developing corridor in
which the major residential development is coming is mainly NH 79 and NH 76 which mainly
consist of inner city area viz. Udaipur road, Nimhada road and Bhilwara road.
The total area of the Chittaurgarh district is 10,856 Sq.Km. which is 3.17% of the total state
geographical area. Within municipal limits of Chittaurgarh the area is 41.76Sq.Km (10,319
acre). Out of the total area of the city only 6345 acres consist of urban area andrest consist of
mountainous range, water bodies, hinterland and agricultural land. Afterindependence, the
population growth of the city increased to 10 times as compared to the earlier decades. The
development of the city mainly took place in two phases as the development in and around the
fort area in 1st phase and the development of the new town area in 2nd phase

ECONOMIC ACTIVITIES
Chittaurgarh has a strong base of economic activities which mainly includes agricultural sector
industries, cement factories and marble factories. The main industries which marks its presence
in Chittaurgarh city area cement, chemical based units, cotton (in bales) textiles, electrical
machinery and parts, general engineering workshop, ghee, oil and dal mills, lead, leather
footwear, machine tools, marble slabs and tiles, paper and paper products, polished marble tiles,
rubber and plastic units, solvent extraction plants, sugar, wood and wood products, zinc.
As per 1961 census about 36.95% of the population consisted of workers whereas
According to 1971 census it was 28.49%. In 1991 30.76% of the population consisted of
Workers and according to census 2001 the percentage has increased to 31%. Due to the
Criteria of being the district headquarter; it consists of 24.84% of workers involved in

48
Different economic activities in the city as compared to the entire district.
The worker population mainly consist of primary sector and secondary sector industries.

Out of total developed urban areas in the city, 2.86% of the area is designated to
Provide base for the primary sector products. About 82.4% workers were employed in
Primary sector i.e. agriculture, mining and quarrying etc. whereas 6.2% of workers are
Involved in secondary sector and rest 11.3% are involved in tertiary sector. The
Percentage in the agricultural sector, in which the production in terms of tonnes has
Been illustrated below:

KEY ECONOMIC DRIVERS

Industrial Sector:
Chittaurgarh city is known for the major industrial base of the district consisting mainly of
cement factories, marble and other agricultural goods. In 1924, first industrial unit of the city
named Cotton Zining Factory started in the city. In 1966, branch of Birla Groups started their
project in the name of Birla cement works in Chittaurgarh which has become the major
industrial unit in present context in terms of employment where at present 1962 workers are
present and providing the economic base of the city. This unit is spread across an area of 80
acres and situated in Bhilwara road at approximately 4kms from the city. The major growth of
Industrial area is mainly along the Bhilwara road where RIICO has developed an area of 105
acre and 155 acre land where approximately 400 industrial units were established.
The other major Industrial units are located in Bundi road, Nimhada road and Pratap
Garh area which have been developed by RIICO. In Bundi road near Manpura village
40 acre of land has been developed by RIICO in which 71 industrial units has been
Established. Majority of industrial units under RIICO consist of Stone and Marble cutting
industries.
Industrial Units in Chittaurgarh

49
• No. of Large and Medium Scale Units: 10
• No. of Small Scale Units: 3,882
• No of Industrial Areas: 7
• Major Industrial areas:
• Ajolian-ka-Khera
• Chittaurgarh(Bhilwara road)
• Kapasa
• Manpura
• Nimbahera
• Pratap Garh

In last two decades, there is a massive growth in the industrial sector in the city. In
1971the industrial employment was 1230 which has increased to 5398 in 1991. There are in
total 295 household industries, 140 small scale industries and 1 large scale industry in situated
in the city. In recent times, along with stone and marble cutting industry, diamond cutting
industries are also been listed in RIICO industrial sector.

MAJOR PLAYERS IN INDUSTRIAL SECTOR:

Birla Corporation Limited : Birla Cement Works & Chanderia Cement Works are units of
Birla Corporation Limited which is a multi-product, multi-interest INR 1, 100 Crore plus
conglomerate. The plants have access to the latest technology and infrastructure and are rated
amongst the most advanced in the country. The plants have a manufacturing capacity of 2.2

50
Million Tonnes per Annum. This plant is situated in Bhilwara road industrial area which is the
major industrial area of the city.

INANI MARBLES (INAMARIN): It is engaged in the production of marble blocks, marble

Slabs, granite slabs and sandstone slabs. The plant is located at Chittaurgarh in
Rajasthan. INANI Marbles & Industries registered a steep drop of 45.53% in net profits of
Rs0.67 million for the quarter ended March, 2007 from a profit of Rs 1.23 million for thequarter
ended March, 2006. The earnings per share (EPS) of the company stood at Rs0.20 in the quarter
ended March, 2007.
HINDUSTAN ZINC LIMITED: It has established their super zinc smelter in the industrial
areanear Putholi. According to this project, production of zinc and brass has been startedfrom
1991 and 1997 respectively for which the major source of water is from Ghonsunda dam. This
project is spread in an area of 825 acre area in Bhilwara road.

EXISTING INFRASTRUCTURE IN THE CITY

• PHYSICAL INFRASTRUCTURE

Roads and transportation:

Existing regional traffic at present flows on the inlaying city roads. NH 79 (Ajmer to Indore)
and NH 76 (Udaipur to Kota) pass through the town. SH 9 cross the city which runs
fromUdaipur via Dobak, Mavali, Kapasan, Chittaurgarh, Ladpura to Bundi. An outer ring road
is under planning stage which will direct the traffic to move in the peripheral roads and prevent
the highway traffic to move through the city to reduce congestion and other related problems in
the city.

51
Bus stand and Truck Terminal: Roadways bus stand is situated near Kila road over an
Area of 5 acres whereas proposal of private bus stand in Gandhi Nagar project is under
Construction. At present truck terminal is not present in the city for which city roads faces
congestion due to on road parking of trucks.

Railway and Air Terminals: Chittaurgarh is connected with Delhi, Jaipur, Ajmer and
Udaipur by Meter gauge line and with Kota and Neemach through meter gauge line.
Prime railway yard is situated in Chanderia area where railway siding facility is provided for
Birla Cement works. With Hindustan zinc and Birla cement industries; broad gauge line has
provided facilities for the marble industries. There is a private facility of helipad in Birla
Cement factory area. At present there is no Airport in the city and the nearest airport to the city
is situated in Udaipur

SOCIAL INFRASTRUCTURE AND COMMUNITY RELATED SERVICES

As per Chittaurgarh City Development Plan 2010, 395 acres has been earmarked for
Community facilities. A systematic distribution of all such facilities has, therefore, been
Made keeping in view the residential densities, local characteristics of the area and
Possibility of their future expansion.
Education:
First educational institute of Maharana Vernacular School was established in the city in
1872-73. after that series of institution has been established in the city with District Primary
school in 1893 which was upgraded to the level of higher secondary school in 1958.
There are total of 74 primary schools, 41 middle schools and 19 medium and senior
Secondary schools are presently located in the city. The only Sainik School in Rajasthan is
Situated in Chittaurgarh city, which is in Kapasan road covering an area of 135 acres.
Chittaurgarh has University which is spread in an area of 24.5 acres in Udaipur road and
Polytechnic College which is situated in Mangalwad road.

52
Health Facilities:
There is one General Hospital of Chittaurgarh having 167 beds with an availability of 2.2 beds
per 1000 persons located near Collecttorate in an area of 6 acres. There is only one 10 bedded
Ayurvedic hospital and one homeopathic dispensary is there in the city. In private sector there
are 9 private clinics are there which are located in different areas of the city. New building of
the general hospital is located in 13 acres of land area in
Mangalwad road.

INFRASTRUCTURE INITIATIVES IN CHITTAURGARH

Chittaurgarh city is in its developing phase with initiative taken by various local and state
government bodies. The initiative mainly involves proposals in different sector considered in
the development of the city both economically and in terms of infrastructure upgradation. The
different sectors involved are illustrated as followed:

Commercial Projects: A commercial centre is proposed (source: CDP, Chittaurgarh 2010)

Near collectorate circle opposite to the existing Roadways Bus Stand which will be the
Major hub of commercial activities in the city. This commercial centre will be of 12 acre

53
Area and will consist of shops, service centres, post office and other related commercial
Activities. The project cost of such development is estimated INR 2.5 crores.
Road and Transportation:
Establishment of Private bus stands in the northern side of the city in Kapasan
Chowk with a project cost of INR 2 crores.
Transport Nagar: Establishment of transport nagar in Bhilwara road near Birla
Cement factory to ease the traffic congestion generated by trucks serving the
Different industrial units of the city. The area of the project will be 42 acres which
Will include godown, private transport office, Automobile market, Truck parking
Area, service station, fire station etc. The project cost of Transport nagar is
Estimated to be INR 2 crores.

Four Lane proposals for the major road of the city: Major roads of the city viz.
Bhilwara road, Udaipur road, Neemach road and road leading to old city area
Are proposed to be four lanes with road width of 100-200 ft.

Broadening and beautification of major rotaries in the city which included the
Junction of Panna dai Bus stand Chowk, College Chowk, collectorate Chowk,
Station road Chowk.

Flyover and over bridge: Existing railway track crosses the city near Kumbha
nagar road which results in major traffic congestion in the city. Development of
Flyover in that stretch has been proposed which will include a project cost of INR
2 crores.

Dhithola Chowk: Development of Asia’s biggest rotary at about 6 km from the city
Towards Udaipur road. This project is under construction and will be completed in

54
2010 which will have 32 road links connecting different cities of the state.

Community Facilities:
Development of Indira Gandhi Stadium has been proposed in the city which will
Cover an area of 17 acres with a project cost of INR 50 lacs.
Establishment of Tourist Complex has been proposed in the city near Bhaikhera
Village with an area of 60 acres land. This complex will cater the demand of
Increasing tourist level in the city. This complex will consist of hotel, cottages, Mela
Ground, restaurant, tourist information centre, bank, swimming pool and other
Related facilities. This project will involve a project cost of INR 2.5 crores.

Other Development Initiatives:

Development and beautification of Gambhiri River, as to make it useful by

Arranging boating and development by bridges and pathways to boost the
• Tourism sector

 Fateh Prakash Fort to be developed as Fort Palace Heritage Hotel

 Lightening in the fortified walls of the Fort to increase the scenic beauty of the fort

REAL ESTATE MARKET ASSESSEMENT

It has been observed that real estate development has been quite sluggish in the recent
Past but there has been a recent spurt due to the involvement of national players in
Industrial sector, with growth of support facilities to complement the industrial sector.
Developers of regional and national repute are in the process of land acquisition in

55
Various parts of city. Development in terms of retail (high street) and commercial activity are
already established in the city which is primarily concentrated in the old city (Rana Sanga
Market, New Cloth Market and Meera market) and upcoming markets in new cityarea
mainly in Station road and Udaipur road. However the development in terms of residential
township and other projects is yet to take off as a part of the developmental activities.
The real estate market of Chittaurgarh is in a developing stage with few retailers of
National repute having presence in the city. The city is observing rapid economic
Development, hence is likely to become an attractive and upcoming investment
Destination in view of its established industrial base and growing tourism base. Since the
Basic economic activity of the city comprises of the Industrial sector, the majority of
Workforce belongs to industrial worker.

In this chapter, the existing and proposed real estate developments in Chittaurgarh have
Been assessed to ascertain the level and quality of supply, capital and rental rates of
These respective developments. An understanding of this will assist in structuring the
Zoning for potential areas and zones for investment forming the basis for future trends of
development.

3.1 RESIDENTIAL REAL ESTATE TRENDS IN CHITTAURGARH

Residential real estate market of Chittaurgarh has been largely dependent on the
Industrial sector (primary and secondary) and tourism activities of city. The city largely
Consist of population involved in different activities such as industrial workers, service class
(institutional and govt. offices), local retailers, and other ancillary activities. Most of
Population of the city belongs to working class (MIG and lower MIG group), which is
Mainly located in the old city area and in New town area. Business class or HIG category
Is mainly located at the north western and northern side of the city comprising of areas

56
Like Panna Dai Colony, Mira Colony, Sinchai Nagar, Shastri Nagar, among others.
Development along the north western corridor (along Bhilwara road) and south western
part(along Udaipur and Neemach road) of the city is in nascent stage where most of the
development is coming in terms of plotted residential and retail (high street)activities. The north
western and south western parts of the city are mainly becoming the preferred locations for the
residents both for residence and investment purposes. The major catalyst for attraction towards
this corridor is the housing schemes of Rajasthan housing board and provision of community
facilities. City has developed in north-south direction over a period of time due to the presence
of natural growth barrier which is Beach River on the western side and fort area on the eastern
side of the city. Most of the residential developments are mainly promoted by Housing Board,
Chittaurgarh which are primarily located in the south and north western part of the city.
The basic structure of the city in terms of its residential zoning can be mainly divided into
three zones. The three distinct zones of residential development are closely related to the
historical and geographical growth of the city. The three zones are mainly divided in terms of its
development phases and are illustrated below:

i) Eastern Zone (Old city and surroundings)

ii) North Western Zone
iii) South Western Zone

i) Eastern Zone (Old city and surroundings):

Eastern zone of the city mainly consists of the fort area and its surroundings. It includes
theareas of Chittaurgarh fort and area surrounded by hilly region. It is a medium
Density area (150-350 persons per acre) with congested roads and over stressed
Infrastructure. The capital price in the Delhi Gate Colony (Old city) ranges between INR
10,000 to INR 12,000 per sq.yd depending upon the location and access road. Burden

57
On physical infrastructure led to its upgradation since it lies in close proximity of
Chittaurgarh Fort. This zone primarily consists of colonies like Gandhi Nagar and Kailash
Colony, promoted and developed by Rajasthan Housing Board. Capital prices ranges from INR
8000- 10000 per sq.yd with average absorption rate of 80%.

ii) North Western Zone:

Shastri Nagar, Sinchai Nagar, Kumbha Nagar, Mahesh Nagar, Meera Nagar, Panna Dai
Colony and Municipal colony forms part of this zone. The developments are mainly located
along the growth corridors of Bhilwara road and Gandhi Marg (connecting new city and
Old city area). These areas are relatively newly developed with availability of basic
infrastructure facility. Primarily these areas are inhabited by populace engaged in industrial
activity. These areas consist of population belonging to MIG and HIG category. The capital
prices for plots are observed in the range of INR 7,000 to INR 13,000 per sq.yd, depending
upon the location. Panna Dai colony, Sinchai Nagar and Shastri Nagar areas are the posh
residential colony of the city located in the north western zone with plot sizes ranging from 100-
300 sq.yd with capital prices of INR 10,000-14,000 per sq.yd.

iii) South Western Zone:

South western zone mainly accommodates residential areas of Pratap Nagar, Bapu Nagar,
Senthi Colony, Madhuvan Colony, Vardhman Nagar, Panchvati Colony and Sewa Nagar
(Housing Board Colony) falling on the major growth corridors of Neemach Road (NH 9) and
Udaipur Road (NH 76) consisting of medium income and LIG plotted housing. Pratap Nagar,
commands a capital prices in range of INR 10,000-15,000 per sq.yd; in Maharana Pratap
Colony it ranges from INR 4, 500 per sq.yd to INR 6,000 per sq.yd; whereas in Bapu Nagar
it ranges from INR 3,000 per sq.yd to INR 4,000 per
sq.yd. The major development corridor is Bhilwara road, Neemach road and Udaipur road
in which maximum development is taking place.

58
At the same time there is no active initiative from private developers in this segment and
absence of local and national repute builders in the city.An initiative by a private developer has
been taken place in Bhilwara Road. This development is named as Zinc Nagar which is
developed by Hindustan Zinc Company for their engineer’s andIndustrial workers. This is
manly plotted development developed by the developed with all needful facilities such as
community club, swimming pool, gymnasium and other related facilities. This development
mainly consists of plotted housing covering an area of 40-45 acres.

 PERCEPTION ANALYSIS:

59
Private developers and investors are yet to gear up in the market as the
Chittaurgarh real estate market is still unexplored.
The concentration of HIG category in the city is moderate with maximum
Population of working class which consists of LIG and MIG category.
The target population for the proposed development will mainly from New City
Area due to concentration of affluent population

 HIGH STREET RETAIL MARKETS IN CHITTAURGARH

Rana Sanga Market, Nehru Bazaar and New Cloth Market is the first well known high
Street retail markets in Chittaurgarh, which date back to nearly 60 to 80 years. It mainly
accommodates retail spaces of local retailers and few national repute retailers. Growing
economic activity in the city due to its large industrial base offers a good potential to attract
national repute retail brands. The other high street markets in the city are Meera market and
Station road market.

1) RANA SANGA MARKET

It is a traditional retail market comprising of majority of shops with local retailers who are
the inhabitants of old city area in Chittaurgarh. This market has been traditionally associated
with small shops with local retailers dealing with jewellery, Cloths, Food and groceries. The
most popular shop sizes are 10*12 Sq. ft, 10*15 Sq. ft. The capital price of RanaSanga
Market mainly ranges from INR 10,000- 12,000 per sq.ft with rental value of INR 70-80 per
sq.ft/month.
2) SADAR BAZAAR
It is a traditional retail market comprising of majorityof shops with local retailers who are the
inhabitants of old city area in Chittaurgarh. This market has been traditionally associated with
jewellery, Cloths,Food and groceries and stainless steel. The most

60
Popular shop sizes are 7*10 Sq. ft, 7*12 Sq. ft, 6*15 Sq. ft. The shops are mainly owned and
are less preferred for rentals because of it imagebility as anold traditional market. The capital
price in this market ranges from INR 5,000-6,000 per sq.ft.

3) NEW CLOTH MARKET

This market mainly consists of wholesale trades mainly dealing in clothes and apparels. It has
a locational advantage of being on the main old well renowned market of the city which is
accessible from major roads of the city connecting to other cities via Bundi road and Neemach
road. There are many small shops in New Cloth market which is one of the prime markets of the
city consisting of wholesale trade.
This market consists majorly of local retailers.
The capital price of New Cloth market mainly ranges from INR 10,000-15,000 per sq.ft with
rental value of INR 80-90 per sq.ft/month

4) NEHRU BAZAAR

Nehru bazaar is an upcoming market in terms of the retail market where most of the brands
such as Raymonds, Airtel, Akai and other brands mark their presence in the market. It mainly
composed of shops belonging to local retailers as well as national repute retailers with an
average shop size of 12*25 sq.ft, 10* 15 Sq.ft and 10*12 Sq.ft. The capital price of the market
mainly ranges from INR 10,000-12,000 per sq.ft with a rental price of INR 70-80 per
sq.ft/month

5) MEERA MARKET

61
Meera Market is located in the main junction which connects the new city to the old city
area.The area where Meera market is located is known as Collecttorate Circle and well off
known as ‘heart of the city’. This is the most upcoming market in the city with major retail
brands of Cantabil, Onida and other local retailers. Meera Market is the preferred location for
the shoppers because of it accessibility and better locational
Criteria from all other part of the city.
In the major markets of the city, mainly Pagdi system has been predominantly observed
In which the shop is taken for 7-8 years agreement for a capital price ranging from 8-10 lacs per
shop. The capital price of New Cloth market mainly ranges from INR 10,000- 14,000 per sq.ft
with rental value of INR 80-90 per sq.ft/month

At present there is no organised retail mall in the city.Only one existing supermarket named
Rama Supermarket is operational in the city covering an area of 10,000 sq.ft area and situated
in Udaipur road in close vicinity of Pratap Garh area. This supermarket comprises of apparel
and groceries on G+2 structured building. The average footfall in weekdays in 60-70 and in
weekends it is 100-150
Persons.

62
STATION ROAD MARKET

RAMA SUPERMARKET
PERCEPTION ANALYSIS:
Concentration of International/National brands or retailers in the city is minimal with
Major concentration of Local retailers in the retail market.
Absence of organized retail space in the city with mainly high street markets in the
City in different areas.
Willingness of prominent retailers to shifting to an organised mall is very high
(Approx. 74%) which shows a positive response towards the development of such
Retail activities. Presence of branded retail standalone buildings in high street retail
markets which
Have shown a positive response towards shifting in an organized retail mall.

COMMERCIAL REAL ESTATE TRENDS IN CHITTAURGARH

At present, there is no high-end commercial development in Chittaurgarh. Most of the
Commercial office spaces are in the form of B and C grade commercial-cum-retail
Complexes. These comprise of small retail spaces on the ground floor and office space
On the upper floors. The important commercial destinations of Meerut City are Gandhi
Marg, Bhilwara road and Old City market. Chittaurgarh, being an important trade centre,
has few commercial complexes where major brands are of local retailers and growingindustrial
market of the city encourages the development of further projects on Commercial lines.
Gandhi Marg, Old City Market and Bhilwara Road have few commercial complexes like

63
Keshav Sawa complex (new cloth market), Bamasa Complex (built along with Hotel
Vishal, Gandhi Marg), Inani Complex (Bhilwara road). These accommodate 20-40
shops,with the standard size for a unit (shop or office) in being 12’ x 30’. The outright rates
varyfrom INR 4500 per sq.ft and 3500-4000 per sq.ft on the first and second floors.
Apart from the few Commercial complexes in Gandhi Marg, Old city market and
Commercial area in Chittaurgarh has not been yet explored. Absence of any major
Commercial office spaces as well as players ahs been observed in the city with only one
Office space of Birla Sun life in INANI Complex which reflects future possibilities of such
development in the city with view of increasing economic activities.
On Udaipur road, Aradhana commercial complex is under construction with a mixed
Model of hotel and commercial spaces. Aradhana complex covers an area of 48,000
sq.ft for which the capital prices ranges from INR 2300 per sq.ft in basement and INR 3000 per
sq.ft on first floor.

PERCEPTION ANALYSIS:
City has become an important trading destination of the city mainly with the
Concentration of wholesale markets such as Grain mandi and other institutional and
Industrial activities and thus encourages the need of various support services like
Banking, insurance, telecom, couriers and transportation etc.

On basis of the city perception analysis, lack of services in terms of financial

Institutions and bank offices are there in the city.
With growing industrial base of the city, city has a positive potential towards
Commercial complex providing space for offices and private banks.

HOSPITALITY AND TOURISM SECTOR

64
TOURISM SECTOR OVERVIEW
Chittaurgarh is the prime tourist destination in Rajasthan and it is famous for its
Chittaurgarh fort. The tourism sector experiences inflow of around 90,000-1 lakhs tourist
annually but its not considered as the major economic driver of the city because of its locational
criteria to other major cities of the state. Tourist usually stays in Chittaurgarh for a day to visit
the fort and usually travels from Udaipur which is only 105 kms from the city.
There is limited number of hotels in the city which does not have good occupancy level
Due to the short visit of tourist to the city.
However tourist visiting the city is increasing from last few decades. The total inflow of
Tourist both domestic and international was 1, 13,538 in 1983 which has increased to 3, 38,307
in 1998.
Apart from cinema halls and recreationalfacility, RTDC is proposing Tourist Complex
Has in the city near Bhaikhera village withan area of 60 acres land. This complex will
Cater the demand of increasing tourist level in the city. This complex will consist of hotel,
cottages, Mela ground, restaurant, tourist information centre, bank, swimming pool and other
related facilities. This project will involve a project cost of INR 2.5 crores.

HOSPITALITY SECTOR OVERVIEW

Chittaurgarh being a prime tourist destination provides good hospitality facility ranging
From budget hotels to star category hotels. Hospitality groups like Inani Group and
Bijaipur Castle hotels Group which is one of the most established groups in the city have their
prime hotel in the city named Padmini Hotel and Pratap Palace respectively.
Chittaurgarh City lacks 4 & 5 star category hotels because demand for such range
Category hotel in the city is minimal. The only tourist place in the city is Chittaurgarh Fort in
which tourist visits in daytime and don’t prefer a night stay. The room rent ranges mainly from

65
INR 300(budget Hotels) to INR 2800 (Heritage hotels) per day. The city beinga tourist city
has large number of footfalls and hence reports peak or lean season.
Average occupancy throughout the year is 40-60 % which mainly results by business
Meetings and conference related to the industrial activities in the city. The hotels in the
City are mainly situated in the New city area due to the facility of better infrastructure
And other amenities.
However, apart from the tourist destination in the city, there are not many options

66
67
HOSPITALITY SECTOR OVERVIEW

Chittaurgarh being a prime tourist destination provides good hospitality facility ranging
From budget hotels to star category hotels. Hospitality groups like Inani Group and
Bijaipur Castle hotels Group which is one of the most established groups in the city have their
prime hotel in the city named Padmini Hotel and Pratap Palace respectively.
Chittaurgarh City lacks 4 & 5 star category hotels because demand for such range
Category hotel in the city is minimal. The only tourist place in the city is Chittaurgarh Fort in
which tourist visits in daytime and don’t prefer a night stay. The room rent rangesmainly from
INR 300(budget Hotels) to INR 2800 (Heritage hotels) per day. The city being a tourist city
has large number of footfalls and hence reports peak or lean season.
Average occupancy throughout the year is 40-60 % which mainly results by business

68
Meetings and conference related to the industrial activities in the city. The hotels in the
City are mainly situated in the New city area due to the facility of better infrastructure
And other amenities.
However, apart from the tourist destination in the city, there are not many options
Available for recreational purposes in the city

LEISURE AND ENTERTAINMENT IN THE CITY

At present, Chittaurgarh has only two operational cinema halls which are located in Old city
area near Chittaurgarh Fort. Retail formats of malls with multiplexes are not yet observed in the
city.
The cinema halls lack in terms of good amenities and infrastructure. The average ticket
Rates for these Cinema Halls ranges from INR. 10-25 per show. The average occupancy
Rate for these cinema halls ranges from 20%- 40% on weekdays and 25-50% on weekends.
The existing cinema halls cater to a clientele of low to medium socio-economic profile.
Due to lack of amenities and infrastructure in the existing halls, people don’t prefer these
cinema halls. Other than that, There recreational and leisure facility in the city are
Minimal with presence of local parks and Gardens. Other recreational facility mainly
Involves Meera Park, Mrigvan Park and other small sector level park.

Table 3.6: Details of Cinema Halls in the city

Chandralok- Rana Sanga Market, Chittaurgarh
Number of screens - 1
Average occupancy - 40%
Seating capacity - 420
Ticket price - 7, 20, 23

69
Biggest Cinema in Town with4711 Sq. yard land, cinema is under lease withNagar palika.
Apsara new Cloth
Market,
Chittaurgarh
Number of screens- 1
Average occupancy – 30%
Seating capacity - 330
Ticket price – 11, 20, 25
Located in Old city area with
Poor, infrastructure and amenities.
PERCEPTION ANALYSIS:
According to perception analysis study of the city, it is found that most of the tourists
Stay in the city for one day during their visit to the Fort. Demand of Multiplex/Mall has
Got a positive response from the tourist as well as local respondents in terms of
Providing a supplementary recreational facility in the city.

LAND MARKETS IN THE CITY

The real estate sector of Chittaurgarh is in its nascent stage with major development
Consisting of industrial, residential colonies and other developments. The area which has
witnessed maximum growth is northern, north western and southern western zone.
Transactions of the large agricultural land parcels and conversion of industrial plots to
Residential land use and commercial land use characterized the market in anticipation of the
uprising realty sector due to the industrial growth and infrastructure developments planned for
the city. The realty sector is expected to gain back some momentum by the end of year 2010
with the establishment of more industries and infrastructure projects. The current land prices
along the major growth corridors viz Nimhada Road, Bhilwara road, Udaipur road and by
pass road range from INR 5 lakhs per Bigha to INR 30 lakhs per Bigha depending upon the

70
location and proximity to the city and the size of the property. The demand for land is
increasing in Udaipur Road and Bhilwara Road because of potential of development of
commercial and other related development in the corridor because of strong Industrial base.

• FUTURE POTENTIAL OF REAL ESTATE IN THE CITY

 PARAMETERS EXISTING TREND UPCOMING POTENTIAL
 RESIDENTIAL SECTOR

The residential real estate market is taking its pace by existing developments initiated by
Rajasthan Housing Board and Private colonies, with new schemes and colonies which are
proposed by them. Development by private sector has still not touched the city.
Upcoming well planned colonies have been designed by RajasthanHousing Board While no
private developer of national/regional repute is operating in the city, few owners of large
agricultural parcels are rolling out small scale residential layouts for MIG and LIG
segment.Overall residential market of Chittaurgarh is mainly driven by end-users with minimal
presence of investors.

71
  RETAIL SECTOR

Retail sector in the city predominantly comprises of high street retail location. These are the
small clustered high street markets in the old city and central core of the new city in close
proximity to city railway station. Organized retail development is yet to start in the city. The
main base of retail is mainly by local retailers of Chittaurgarh which are largely concentrated
in New City area and Old City area. National level retailers are coming up with their brands
mainly in New city area mainly in Meera market and Station road area. Few departmental stores
have mushroomed in the form of organized retail in the city. Upcoming potential of organized
retail sector can be marked with
The huge response observed by departmental stores and retailers hosting branded products and
resulting high footfall and conversion level of the national level retail brands in the city.

 COMMERCIAL SECTOR
The commercial sector is still dormant in the city with few private bank or corporate house.
Chittaurgarh does not host any organized commercial complex till date. Few operators who
have presence in the city like HDFC Bank and Birla Sun life among others are occupying shops
small commercial complexes coming up in the city Industrial sector being the major economic
base of the city requires the presence of private sector banks with facilities of ATM; Online
banking and Money exchange
Counters may generate the high potential demand for commercial spaces in the city

 HOSPITALITY SECTOR
Hospitality groups like Inani Group and Bijaipur Castle hotels Group which is the major group
established in the city has their prime hotel in the city but demand for such range category hotel
in the city is minimal. Average occupancy throughout the year is 40-60 % which mainly results

72
by business meetings and conference related to the industrial activities in the city. Future
potentials for hospitality development is as low because of less stay of the tourist in the city and
in existing hospitality sector, the major occupancy level is observed by business and service
category

 LEISURE AND ENTERTAINMENT

In context of Leisure and Entertainment sector, only local cinema halls with inadequate
infrastructure. Central public park/Fair Grounds provides alternate recreational facilities to the
city. Due to shortage of any high level leisure and entertainment in the city, it has a potential for
the growth of such development such as multiplex, amusement parks and other facilities.

• SITE LOCATION AND SWOT ANALYSIS

The site has been studied in the context of its neighbourhood, type of developments and
Growth trends in the area, its connectivity and its potential to become a successful
Destination. Site location and analysis in terms of available linkages and connectivity to
Other areas in the city, available infrastructure, neighbourhood developments and
Characteristics have also been considered. The south and north western quadrant of
Chittaurgarh has been studied in detail for the purpose of establishing the catchment
Population and its characteristics.
This section presents the site description, location and context, site connectivity, the
Catchment profile, and finally Strengths, Weaknesses, Opportunities and Threats of the
Subject site.
PROJECT DESCRIPTION
The subject site is located at on 75 feet (proposed) wide Palika Road which branches out

73
From B.T Road leading to Collectorate circle on west and Old City in east. It is
approximately 1 km from the main city (railway station) and lies in north western part of the
city. The major landmark of the subject site is Roadways Bus Stand which abuts the site in
north direction.

The site admeasures approximately 7200 Sq.yard and has an excellent frontage of
Approx. 105 feet on the main Palika Road leading to B.T road. Depth of the subject is very
large which admeasures 325 feet. Site is a part of R Zone designated by Town Planning
section (Municipal Corporation).
The site falls in medium density residential use (100-150 ppl/acre) area. In the immediate
vicinity of the site there are residential areas of Municipal Colony (Kidwai Nagar), Panna
Dai colony and Meera Nagar which consist of population belonging to MIG group category.
The site falls off the Palika roads which has an access from B.T road leading to Old City area.
The visibility of the subject site is low due to the presence of Bus Stand adjacent to it. The
ground water condition on the site is also quite good but at present no infrastructure facility has
been provided to the site, where the infrastructure is to be provided and under Municipal
Corporation in future.

SITE NEIGHBORHOOD ANALYSES

The surrounding of the site is mostly of residential use which consists of colonies of
Municipal Colony, Meera Nagar Colony and Panna Dai Colony. At macro level, site is
Surrounded by Chittaurgarh fort which is the major tourist destination of the city.

NORTH OF SITE
Northern area abuts the Roadways Bus Stand and B.T road which leads to the Fort area
On east and collectorate circle on the west. The major residential development in north of the
site is Meera colony and Panna Dai colony which is one of the posh residential

74
Areas of Chittaurgarh city. The area accommodates MIG and HIG colonies where major source
of income is service sector and business. Quality of construction is good and basic
infrastructure in the area is under the jurisdiction of Municipal Corporation.
Electricity and water connections are available through Govt. authorities.

WEST OF SITE
75 feet (proposed) Palika road falls on the west of the subject site which branches out
From B.T road and leads to Municipal Colony. Other developments on the west are budget
hotels such as Natraj hotel and President Hotel which are located on the palika road. On the
further west of the subject site Bhilwara road is runs from north to south which is the major
growth corridor of the city.

SOUTH OF SITE
Southern side of the subject site comprises of small scale Plotted development of Municipal
Colony. The south eastern side of the subject site comprises of residential use. At Macro level
of the sit NH 76 falls on the southern side of the subject site which is leading towards Bundi via
Old city area.

EAST OF SITE
Eastern side of the subject site consists of agricultural lands as a green belt for the Gambhiri
River. Gambhiri River divides the Old city area and New city area. Further on east of the site,
Old City is situated where most well known high street markets of the
City is located viz. Rana Sanga Market, Nehru Bazaar, New Cloth Market and Sadar Bazaar.

75
CONNECTIVITY AND LINKAGES
Subject site is strategically located on Palika Road in the locality of Kidwai Nagar
Residential area. Site falls within the municipal limits of Chittaurgarh. It is well linked with
major road of NH 79 through BT road. NH 79 is the major growth corridor of the city where
most of the upcoming retail and residential projects are coming up. At present the site is
approachable through Palika road which branches out from B T Road which is proposed to be
widened to 100 feet road. Thus the site will have well
Connectivity within the city.
LAND MARK DISTANCE
• RAILWAY STATION 1 km
• ROADWAYS BUS STAND 0 km
• CHITTAURGARH FORT 500 m
• KALA GHODA CHOWK 1

INFRASTRUCTURE ASSESSMENT
The subject site enjoys good road access from 75 feet (proposed) Palika road;
Connecting the subject site from the main city.
Subject site and the adjoining areas have electricity and water connection available
From the municipal authorities. Since the subject site lies in designated R-Zone according
Master Plan, the local authorities will ensure requisite infrastructure is provided once the
development is permitted in this area.
CATCHMENT DELINEATION
The catchment for the subject site is mainly decided on the travel time because of its
Small geographical area for which only Primary and Secondary catchment has been
Taken into consideration after conducting a reconnaissance survey of the
Neighborhood. The primary catchment covers up to 0 – 5 km radius from the site or
About 5-15 min driving time which mainly covers the whole of the Chittaurgarh town,

76
Secondary catchment radius has been considered 6 – 15 km or 15-30 min driving time. In case
of this project the whole city falls within the range of primary level catchment.
Secondary catchment for the project will include adjoining towns and villages.

Characteristics of Primary and Secondary catchments

Primary Catchment (0-5 Km from the Site)

Immediate Catchment:
Kidwai Nagar, Panna Dai
Colony, Meera Colony
• Famous residential area situated in the close vicinity
• Mainly consist of medium and high income group.
• Area considered as ‘heart of city’ consisting of the major
Activity centre of the centre including Collector’s office and
Meera market

Chittaurgarh Fort
• Major tourist destination of the city
• Site falls on the way leading to the fort and can additionally
Provide an image lift up for the proposed project on the
Subject site
• Close proximity to the Old City high street retail area (Rana
Sanga Market, Nehru Bazaar, and New Cloth Market) which is
Considered to be the major activity centre of the city.

77
New City area
• Location of major residential areas in (1 km) radius such as Kidwai Nagar, Panna Dai Colony,
Meera Colony, Shastri Nagar, Pratap Nagar which is the major posh areas of the city with
mainly MIG and HIG category housing
• Major retail destination of the new city Meera market is located in the close vicinity which has
image lift up for any proposed development adjacent to it.

Development Projects
• Development projects of Bypass road, integrated tourist complex, development of
commercial complex in Gandhi Marg and other development initiative in new city area will
boost the economic activities of the city
Secondary Catchment (6-15 Km from the Site)

Near by Villages and Towns

• Secondary catchment mainly consists of small towns and village in the surrounding in the
radius of 6-15 km range.
• The towns in the surrounding area are Pratap garh, RK colony, Ghonsunda, Ghataoli,
Bijaipur, Putholi
• These surrounding towns and villages mainly consist of agriculture base population

78
SWOT ANALYSIS
The characteristics of the subject sites, their connectivity and surrounding have been
Analyzed to conduct the SWOT analysis.

Strengths
• Large site area provides ample typological and development options.
• Subject site enjoys excellent inter-city and intra-city connectivity.
• Subject site is well connected to all the major landmarks through B.T Road
• Good frontage (approx. 105 feet) of subject site on internal Palika road.
• Subject site is a part of well established Kidwai Nagar and is in close vicinity of
Collectorate Circle and Meera Market.

Weaknesses
• Immediate catchment population of subject site mainly belongs to MIG category
And the project development would have take into account the surrounding
Area development. However, areas in the close proximity i.e. New City consist of
Good residential colonies which can support the proposed development.
• Subject Site is located off the main road connecting current bus terminus to
Collectorate circle and thus has poor visibility and accessibility from main road.
• Visibility being a prime parameter for success of retail project renders the subject
Site sub-optimal for such development.

79
Opportunities
• The existing Industrial activities of the city lead to a high demand for retail,
Commercial and other related activities in the area
• Apart from the tourist destination there are no other recreational options
Available in the city, hence the subject site development will have an early
Mover advantage.
Threats
• Availability of better locations to position the proposed development in the
Subject catchment
• The catchment has limited sustaining capacity to support such establishments.

Procedure of setting up a multiplex

The procedure of setting up a multiplex is divided into 3 phases after the multiplex operator has
decided the location of the multiplex and entered into the agreement with the mall developer.
Development of property
In this stage the mall developer develops the property according to the specifications agreed
upon by the multiplex operator and the mall developer. The mall developer has to get certain
approvals from various authorities. After the mall developer completes development and gets
approvals, the property is handed over to the multiplex operator.
Fit outs: After the property has been handed over to the multiplex operator, the interiors are
done up by him. This includes civil and architectural work, designing, seating, carpeting,
putting up the screens etc. This stage normally takes between 2-6 months depending on the size
and scale of the project.
Approvals: After fit outs are completed, the multiplex operator has to get various approvals
before he can commence operations. On an average this stage takes around 1-3 months
depending on the size and scale of project as he has to get approvals from the fire department,
electrical department, health department and various other licenses.

80
 • Standard Operating Procedure (SOP)

 Land Procurement

1. Land Identification

1.01 Desktop study-city profiling

1.02 Ground study-city profiling
1.03 Decision
1.04 Location finding
Code no. Activities

1.01 Desktop study-city profiling 1.01.01 Using internet services

1.01.02 Telecommunication

1.01.03 Primary data

1.01.04 Advertisement & classified

1.01.05 Existing knowledge

1.02 Ground study-city profiling 1.02.01 Hospitality & cinema

1.02.02 Colonies & density per colony

1.02.03 Shopping markets & industries

1.02.04 Hospitals, education, clubs and banks

1.02.05 Ongoing property prices.

1.03 Decision 1.03.01 Swot analysis

Note: if yes
1.04 Location finding 1.04.01 Property parameter.
1.04.02 Near 2 km. area analysis.

81
 1.04.03 Type of property.

1.04.04 Legal disputes.

1.04.05 Type of ownership transfer.

1.04.06 Comparison among available

properties.

S.No Activity Sub-Activity Decision

1.02.01 How much people Grocery (4000-4500), apparels (1000- Good chances for running
spend per month on 1500), food (800-1000), cinema (300- a multiplex mall.
cinema, hotels & 500)
ogrocerry, apprels. And 2 cinema, 18-20 hotels in city.

1.02.02 Developed and good 18-20 well developed colonies Good catchments Area
colonies with more With 3000 to 15,000 per sq. yards rates. for mall.
than Avg.
density/house.

1.02.03 No. of shopping Mainly 5-6 shopping markets with 25-30 More chances for success.
markets and industry avg. shops, 10-12k/sq ft selling & 80/sq.ft
trend. rental rates. 3900 (Apprx) industries with
mainly Hindustan Zink and j.k cements
etc

1.02.04 Availability of basic Total 13 hospitals, and 134 hospitals Should be entering in
facilities in that And 10-12 banks. market.
market.

1.02.05 Commercial, 20 to 30 lakhs rs. Per bigha land rate in Balanced Land price, and
residential, and the city. affordable.
agricultural property
rates.

82
83
 On that information
1.03.01 Existing Strength, Strength- big banks, good ind., potential
we should be entering
weakness, and future shopping market, growth of retail & real
in that market
Threats and sector.
because good chances
opportunities of Weakness- scarcity of basic requirement like- of success in future.
market. college, schools, literacy power, and basic
resources.
Opportunity- moving market trend in tire 3 &
4 cities, first move in market, economy power,
GDP growth and level of education and
technology.
Threats- increasing inflation rate, taxes,
scarcity of natural resources, upcoming malls
and fuel prize as my perception.

1.04.01 Positive and negative Positive- 70,000 sq ft. land area. Good physical
impact of evidence of property,
property like- > 100 ft. road width. no legal problem in
Land area-40,000 to > 180 ft. front. future and more
70,000 sq. ft, more chances of grab the
than 170 ft. front, Square shape. market.
and social activities Negative- school, temple, petrol pump and
under 200 meters. hospital under 200 meter Area of property.

1.04.02 Banks, hotels, well 6 banks, 2 college, 10-12 hotel & restaurants, Good indication of
developed colonies, 4 well developed colonies with high standard perfect property for
shopping markets, locality, high footprint shopping market, per open a multiplex mall.
and PCI & spending capita income & spending power is good etc.
power under 2 km.
area.

1.04.03 Commercial, Commercial, agricultural but easily changes Same as our

residential or in commercial property. requirement property.
agricultural.

1.04.04 Dispute among No dispute among brothers for holding, Good land and
brothers, or available of transfer the property. meeting with our
prohibited of requirements.
property etc.

84
1.04.05 Rent, selling or lease. Properties are available on selling and some Selling property is
are in lease. suitable, high real
sector growth (35%).

1.04.06 Choose one property One land come out, it’s have near 4 developed It’s good property
among all. colonies & good locality, no legal dispute, near among all, and can
by market and good connectivity, more than open a multiplex mall
our parameters. over there, good
indication of success

85
 2. Land Registration

2.01 Negotiation

2.02 Registration

Code no. Activities

2.01 Negotiation 2.01.01 Fixed Meeting with party.

2.01.02 Negotiation on property terms.

Note – if yes

2.02 Registration 2.02.01 Checklist of property

2.02.02 Required documents

2.02.03 Registry

2.02.04 Post-precaution

86
Code no. Sub-activities Outcomes Decision

2.01.01 Telecommunication with property Meeting date has been decided on Seller party is
agent and fixed the meeting with a particular date for further interested in
property owner. activities. property selling.

2.01.02 On meeting day both parties fixed
the property rates according
market rates & location, payment
terms, and activities of agreement
and registry.
30 lakh/bigha rates have been Seller is ready for
decided and 10% advance have to selling, no dispute
given by buyer party & rest at and ready to take
registry time, and a particular registry step
date is fixed for agreement &
registry process.

2.02.01 List of Precautions before land Precautions like-type of Same as our

Agreement and registry of property. property,ownership,payment terms, Property
availability of required documents, Parameters.
paid of taxes & bills by
seller party etc.

2.02.02 Checking required documents before All the documents are collected and No problem in
Property transfer by both parties. Verified by both parties and Registration.
Sub-registrar.

2.02.03 Agreement and registry All the documents verified and Property is
(transfer of property holding) Property holding is transfer from Ready for
Procedure. Seller to buyer. Construction
Or Other use.

2.02.04 List of precaution after property 1. Deed shall execute it by affixing

Next step
Transfer from seller to buyer. full could
Signatures. Be taken.
2. Each page signed by all the
sellers.
3. Kept the detail of witness like-
PAN card
And VOTER ID etc.
4. Sale deed presented at the
jurisdictional

87
 Sub-registrar.

Annexure – 01 General precaution.

88
2.01.01 Prelimina yes As our
ry Requirements.
Investigat Have you identified and
ion visited the property?
Is the nature of property Commercial No legal
residential/ commercial/ property Problem.
industrial/ hotel?
Is the nature of property in Yes
harmony with the
permitted land use?
Is the property single plot Single plot
of land or many?
Is the plot singularly or Singularly plot
jointly owned?
Is space ready to start for Yes
construction?
Is the seller and Individual
individual/firm/HUF/compa
ny/AOP?

Determini
ng The
Right
Title &
Interest What are right, title and
Of The interest of the seller in the
Seller property?
Is the owner the original Yes, owner is No legal problem
owner? Is his title deed original. In future.
original?
In case of a Sale Deed, has No
the plot been sold to any
one else?
Have certified copies of all Yes
original documents been
obtained?
Is the seller the sole Sole owner
owner/ part owner of the
property?
How did the seller acquire Family property
the ownership of the
property?
Has a Non-Encumbrance Yes
certificate been obtained
from a leading law firm/
lawyer?
Is the plot free from any Yes
tenancy and ready for
peaceful and vacant
possession?
In the case of joint No
ownership are the other 89
co-owners joining in the
execution of the sale?
 Complian Has the Vendor obtained, if All documents
ce With applicable, consent, Are Verified and
Local permission, sanction, NOC Original.
Laws of various authorities?
a) Municipal Corporation Yes
b) UIT Yes
c) Land Acquisition Officer Yes
d) Any Other Yes

Annexure 2- Documentation.

Code no. Activity Sub-activity Result

2.02.02 Availability of required list of 1.Title deed- legal document proving YES.
Documents Before Property A Person’s right to property.
Transfer.

2. Encumbrance certificate- proof of YES.

No Legal dispute in property from
Last 30 years.

3. Release certificate-property is not YES.

Pledged for loan.
4. Torence plan- survey detail of YES.
Property like- width etc.
5. Release certificate by all in case of YES.
More than one owner of property.
6. Conveyance deed YES.

7. Witness ID and Address proof YES.

Like-PAN card, voter id.
8. Verified detail of “patta” in the YES.
Name of owner.
9. paid bills of property tax, light and YES.
Water bills.
10. ID and Address proof of both YES.
Parties.
11. POA- in case of property owner is Property
NRI. owner
Is Indian.

90
 Annexure 3- REGISTRY.

code no. Activity Sub-activity Outcome

2.02.03 Detail of registry process 1. Agreement for sale Draft agreement on Rs 50 Stamp
and expenses list between the parties involved in
transaction.
With covers following things-
1) 8 cr. Agreed cost of land.
2) 10% Advance amount detail.
3) 2 months Time span of actual sale
should take place.
4) 20% of property cost has to pay if
any party makes a default.
5) Both parties and witness signed
and documents are verified.

2. Registration Required documents are available

for registration like-
1. Original title deed.
2. Previous deeds.
3. Property taxes.
4. Torence plan.
5. Two witness.
3. Expenses list. List of Expenses is available like-
1) Stamp duty- 7.5% of actual
property cost (M.P).
2) Registration fees- 2% of property.
3) Document writers/lawyers fees-
depend on cost of property and vary
with individuals.
4) 2% broker cost.

91
• What India makes a fast Emerging Business Destination –

 Special Incentives provided by the government to attract investments.

 Less time and few procedures required to start a business
 Growing potential of Tier II and Tier III cities
 Easy availability of skilled talent pool
 Emerging middle class
 Increasing disposable income
 Number of emerging sectors witnessing growth
 Easiness of FDI in industry.

• Business Opportunity in India

 Domestic Market Opportunity

 Vast population.
 Increasing purchasing Power.
 Growing size of middle and higher consumer class.

 Off-shoring Opportunity

 Availability of skilled talent pool.

 Cost Savings.
 Knowledge/R&D hub.

 Sourcing Opportunity

 Availability of raw materials.

 Presence of strong industry infrastructure.
 Developed technology.
 Cost savings.

92
 • Expend the Property- cost and revenue analysis.

These are looking the properties in potential, economically sound cities on rent, Lease or
J.V where the city Population and others sources are a little bit less than company
decided Parameters.
They are forecasting & selecting the property on the basis of balance-sheet of property.

Anand, Hanumangarh

No. of Seats 981

No. of Shows per day 2
No. of days in month 30
Occupancy Level 10%
Average Ticket Price 20
Monthly Ticket Income 117720
No of Persons in month 5886
SPH 15
Profit on Items 20%
Concession Income 17658
Total Income 135378
Expenses
Electricity, Labour, Maintance 30000
Movie Rental 40% 36222
Entertainment Tax % 30 27166
Administration cost 10000
Advertisement Cost 5000

108388
Rental 26990

93
 Preeti, Anoopgarh

No. of Seats 757

No. of Shows per day 3
No. of days in month 30
Occupancy Level 20%
Average Ticket Price 13
Monthly Ticket Income 177138
No of Persons in month 13626
SPH 15
Profit on Items 20%
Concession Income 40878
Total Income 218016
Expenses
Electricity, Labour, Maintance 30000
Movie Rental 40% 54504
Entertainment Tax % 30% 40878
Administration cost 10000
Advertisement Cost 5000

140382
Rental 77634

Anand, Anoopgarh

No. of Seats 280

No. of Shows per day 3
No. of days in month 30
Occupancy Level 25%
Average Ticket Price 12
Monthly Ticket Income 75600
No of Persons in month 6300
SPH 15
Profit on Items 20%
Concession Income 18900
Total Income 94500

94
Expenses
Electricity, Labour, Maintance 30000
Movie Rental 40% 23262
Entertainment Tax % 30 17446
Administration Cost 10000
Advertisement Cost 5000

85708
Rental 8792

Shiv Mandir, Hanumangarh

No. of Seats 642

No. of Shows per day 3
No. of days in month 30
Occupancy Level 20%
Average Ticket Price 30
Monthly Ticket Income 346680
No of Persons in month 11556
SPH 15
Profit on Items 20%
Concession Income 34668
Total Income 381348
Expenses
Electricity, Labour, Maintance 30000
Movie Rental 40% 106671
Entertainment Tax % 30 80003
Administration Cost 10000
Advertisement Cost 5000

231674
Rental 149674

95
 Ashish, Hanumangarh

No. of Seats 810

No. of Shows per day 4
No. of days in month 30
Occupancy Level 10%
Average Ticket Price 22
Monthly Ticket Income 213840
No of Persons in month 9720
SPH 15
Profit on Items 20%
Concession Income 29160
Total Income 243000
Expenses
Electricity, Labour, Maintance 30000
Movie Rental 40% 65797
Entertainment Tax % 30 49348
Administration Cost 10000
Advertisement Cost 5000

160145
Rental 82855

96
AGE WISE DISTRIBUTION OF CINEMA
VIEWERS

97
REAL ESTATE SUPPLY
Multiplexes are often regarded as the footfall magnets for malls. The concept of
shopping-cumdining-cum-entertainment outing is gaining popularity among the urban
populace, where multiplexes in malls become the most relevant destination choice.
Almost all upcoming malls have a multiplex operator as an anchor tenant. Hence, we
believe that the supply of real estate will not be an issue for the sector, even though the
pace might be slow due to development delays. India is presently witnessing a retail
revolution with many big players foraying into organized retail and many mall
development plans being announced in order to cater to their expansion plans. The pace
of mall development will surely ensure availability of quality real estate for multiplex
operators.

98
PROCEDURE OF SETTING UP A MULTIPLEX
The procedure of setting up a multiplex is divided into 3 phases after the multiplex
operator has decided the location of the multiplex and entered into the agreement with
the mall developer.

Development of property
In this stage the mall developer develops the property according to the specifications
agreed upon by the multiplex operator and the mall developer. The mall developer has to
get certain approvals from various authorities. After the mall developer completes
development and gets approvals, the property is handed over to the multiplex operator.
Fit outs:
After the property has been handed over to the multiplex operator, the interiors are done
up by him. This includes civil and architectural work, designing, seating, carpeting,
putting up the screens etc. This stage normally takes between 2-6 months depending on
the size and scale of the project.
Approvals:
After fit outs are completed, the multiplex operator has to get various approvals before
he can commence operations. On an average this stage takes around 1-3 months
depending on the state as he has to get approvals from the fire department, electrical
department, health department and various other licenses.

MULTIPLEX BUZZ!!
The nation's multiplex industry is all set for an unprecedented boom buoyed by positive regulatory changes and
booming consumerism. Multiplexes /megaplexes have been instrumental in contributing 28 percent of the total
theatrical sales for the film industry according to a report by Systematix Institutional Research. Industry experts
estimate that top six multiplex chains have plans of 300-500 screens each by FY-10.

• DLF, a leading real estate player in the country, plans to invest US$ 298.12 million for the expansion of
its multiplex business. The company has planned to add at least 500 screens in the next four to five years
across the country.
• Entertainment conglomerate Adlabs Cinemas has drawn up a plan to build 12 megaplexes in India where
you can not only see movies but also cricket and soccer matches on screen.
• Multiplex chain PVR Cinemas, which currently has 92 screens, is also planning to add over 150 screens
across India, staggered over a period of three years from 2008-2010, with a total investment outlay of
around US$ 71.55 million.
• Cinemax India, the multiplex chain which currently has 55 screens over 17 properties across the country
is planning to scale up its presence to 299 screens across about 100 properties by fiscal 2010

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• SWOT Analysis

1. Strength
 First mover in Rajasthan for CINEMA CUM ACTIVITY CENTER.
 Untapped Tier 2 & 3 market in India.
 Apprx. 19 % Entertainment industry growth.
 First mover advantage in in tier 3 cities with Multiplex mall.
 Slow down in property price.

2. Weakness

 Financial crisis in global market.

 Rising of inflation tate, interest rates, and crude oil.
 Slow down in GDP Growth.
 Slow down in property price.
 More competion in cinema market.

3. Opportunity

 Good industry growth.

 High economic growth.
 Changing the life style trends in rural market.
 Growth in literacy rate and house hold income.
 Sound growth in organized retail markt.
 More FDI & FII in India.
 SEZ system in india.

4. Threats

 Cut throat competition in market.

 Competition to become the power among nations.
 Decreasing the volume of natural resources.

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• Learning outcomes and recommendations

1. Learning outcome

♦ Understanding the importance of organization culture.

♦ Importance of time management and Discipline in the office.
♦ New trends in cinema and real estate market.
♦ Consumer behavior of rural Indians.
♦ Importance of strategy to develop the business.
♦ How to conduct a physiabilty study?
♦ Importance of SOP IN BUSINESS DEVELOPMENT and property
purchasing.
♦ New trends and growth drivers in rural market.
♦ Clear understanding of segmentation, targeting & positioning.
♦ Uses of minimum resources to got maximum profit.
♦ Importance of vision & mission, objective of organization.
♦ How to make strategy for enter in new market.

2. Recommendations

♦ We should adopt lease strategy in nascent stage of org.

♦ Open the property in emerging cities in India.
♦ Recruiting the skilled work force.
♦ Should be clear in comp. vision & mission statement.
♦ Choosing high house hold income cities.
♦ Consistency and effectiveness in product service.
♦ More focused in branding and product promotion.
♦ More Transparency in property purchasing and go through every
steps in property purchasing with more concern and clarify every
documents and negotiation.
♦ First mover advantage.

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 • References

I got information and data of these following websites,

these websites are
Valuable for management students.

1. www.google.com

2. www.ibef.org

3. www.indiarealitynews .com

4. www.knowledge.wharton.upenn.edu/india

5. Marketing management- Philip chortler

6. www.magicbricks.com

7. www.99acres.com

8. www.jaipur.ghoomo.com

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