Old or young, everybody likes a multiplex because it offers what one aspires for. Its coming onto the market has changed the concept of entertainment business. Success of malls also revolves around multiplexes. Rajshekhar Chakroborty explores the issue and captures the latest trends

Arrival of multiplexes has changed the entire scenario of entertainment industry in India. In the development of multiplexes, India is one of the leading countries in South Asia. Theatre developers are building 10 to 15 multiplexes a month with each multiplex having at least four to five screens. As per statistical reports, the country has, at present, around 350 multiplex screens and, by 2011, the figure will increase to more than 2,000. Multiplexes' steady proliferation in the metros and their simultaneous penetration into some smaller cities and towns testify to their increasing popularity among Indians. According to industry experts, multiplexes have completely redefined the business of entertainment. Indeed, multiplexes have changed both taste of audiences and experience of watching movies in India.

Multiplexes in retail
Market insiders have revealed that multiplexes have a major role to play in boosting organised retailing in India and making a business of approximately Rs. 35,000 to 50,000 crore.  With this scale, one can expect that it is going to grow eight times in the next few years. There would be approximately 330 operational malls with multiplexes in the country by the end of 2007 and this is good for both the industries. Mr Atul Goel, CEO,
E-City Venture, says, “Multiplexes are a perfect example of convergence of retail and entertainment across the mall and high-street (organised shopping formats).” We can say that multiplexes act as catalysts for retailing in malls and high-street markets.  Studies show that multiplexes increase footfalls by a whopping 40 to 50 per cent.
In today's booming market, retailers and multiplexes are mutually beneficial to each other. Therefore, it would be difficult to view any of them separately. According to Mr. Shravan Shroff, founder and Managing Director, Shringar Fame cinemas, “Both multiplexes and retailing get benefits from each other. Multiplexes act as anchor tenants which help in attracting crowd in malls and high street markets. However, if there are too many multiplexes in the vicinity, retailers will face the heat due to stiff competition.”

Contribution to film industry
According to experts, the total film market in India is currently estimated to be Rs 35,000 crore and unorganised sector accounts for around Rs 33,500 crore. This means that the organised sector accounts for only a share of Rs 1,500 crore. Studies show that the film industry is growing annually at the rate of 14.3 per cent, which is a fairly good rate of growth. In terms of number of films produced, the Indian film industry continues to be the largest film industry in the world. With the increasing popularity of multiplexes among Indians, the concept of film business in India has gained a new dimension.
Reports indicate that multiplexes account for 0.6 per cent of the total cinemas, 2.3 per cent of the total screens and have a total capacity of more than two lakh seats. At multiplexes, ticket price varies usually from Rs 75 to Rs 350. The average gross collection per multiplex is around Rs 5.72 crore. Thus, multiplexes fetch about 29 to 35 per cent of the revenue for the film industry. The multiplex industry is expected to invest nearly Rs. 2,200 crore in the next two years. Mr Tushar Dhingra, COO, Adlabs cinemas, informs, “Multiplex industry is expected to grow at 25 to 30 per cent, which is good for the vibrant economy that is growing at the rate of 10 per cent per annum.”

Multiplexes in malls
Over the last three years, mall phenomenon has had a significant impact on the lifestyle of metro-residents. Nowadays, malls have become synonymous with glamour and these centres are generating a substantial amount of excitement and curiosity among the common people. Indian consumers have already started accepting the mall culture, and with economic boom in the country, they are now willing more to spend money in fulfilling their wants. It goes without saying that success of a mall lies in its ability to attract customers consistently.
Ajay Bansal, CEO, Satyam Cineplex, observes, “Out of the three constituents of a mall viz. entertainment, shopping and eating out, multiplex is the most capable traffic-generator. When people come to watch a movie, they eat out and also shop.”  Mall developers all over the country prefer that, therefore, multiplexes occupy their top floors so as to act as anchor tenants and ensure high footfalls. The traffic flow and layout of the mall are so planned that they ensure that consumers reach the cinema after experiencing and exploring retail (food, shopping and other leisure facilities) areas of the mall. Mr Alok Tandon, Chief Operating Officer, Inox Leisure Ltd, informs, “People generally come to a mall with the intention of watching a movie and end up by making major purchases. But, it could be the other way, too. A mall could be a pleasure destination with the multiplex merely being just one of the options. With both the options in hand, this is definitely an example of the classical chicken and egg question.”