The Calcutta City Network

Calcutta, of all places, is playing host to the “first ever acquisition or merger” in the Indian multiplex space. INOX Leisure Limited has just entered into “an all-share-swap deal” with Calcutta Cinema Private Limited (CCPL) for acquiring CCPL and merging its operations. In simpler terms, within six months, when all the paperwork is taken care of, all the 89 Cinemas properties — both existing and proposed— will be branded INOX multiplexes.

In terms of numbers, the proposed merger will take INOX’s plex count to 13 in Bengal and eight in Calcutta once all the under-construction properties are fully ready. In the city, INOX already has two operational plexes — at Forum and City Centre — and 89

Cinemas has one in Swabhumi. Add to these two five-screen INOX properties coming up in Diamond City and Jessore Road and three four-screen 89 Cinemas holdings being readied in Hazra, Howrah and Rajarhat.

“Every industry goes through a growth phase first and then enters into consolidation,” Deepak Asher, director of INOX Leisure Limited, tells Metro. “This acquisition can be called the first transaction of the consolidation phase for INOX. By taking over already existing properties, we are going for a faster trajectory than building new properties from scratch.”

It’s also a win-win situation for 89 Cinemas, which has its fair share of loyalists but has been unable to match the INOX sway over the city. “It’s a merger of the strengths of either side,” claims Debashis Ghosal, CEO and MD of 89 Cinemas. “Our positioning in eastern India is giving INOX the strength to consolidate in the region while their national presence is adding value to our shareholders and stakeholders. Even our employees are getting absorbed under the same conditions in a bigger company format.”

But why have 89 Cinemas (Swabhumi) and INOX (City Centre) in the same catchment area? “With both the properties now coming under the same management, we are confident of providing a synergy between the two,” says Asher. “Also, the programming can be done differently in the two properties so as not to clash with each other. Anyway, you have to look at this acquisition from a macro perspective, rather than only at the operational Swabhumi multiplex.”

With INOX taking over the 89 Cinemas properties, Fame (Hiland Park) remains the only non-INOX operational multiplex in the city. “I am sure other players are going to venture into Calcutta and eastern India soon, but yes, by making an early move we do have a distinctive advantage. INOX is already the most profitable multiplex chain in the country and we want to continue our run,” adds Asher.