Exchange4media.com: This could be the second M&A in the film exhibition space after Reliance acquired Adlabs Films. E-City Digital Cinemas, a provider of digital cinema solutions, has acquired a majority stake of 51 per cent in Shree Vijay Raj Entertainment & Software Ltd (SVRESL). With revenues of Rs 22 crore ($5 million), SVRESL is one of the leading exhibitors in Mumbai exhibition territory and it controls and manages around 90 cinemas in Gujarat and Maharashtra. This acquisition would help E-Digital Cinemas to roll out its digital cinema network.
E-City Digital Cinemas is part of the Essel Group’s E-City Ventures. It also owns Fun Multiplex Ltd, which has earmarked Rs 165 crore ($37 million) for putting up 140 screens under the banner of Fun Cinemas across 35 locations in the country. It already has multiplexes in Mumbai, Ahmedabad and Chandigarh. E-City plans to digitise 500 screens by 2007, and will be focusing on the Mumbai exhibition territory (including Mumbai and Konkan, Western Maharashtra, Gujarat and parts of Karnataka).
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