G V Films to build multiplexes in tier 2 TN cities

Chennai: The Chennai-based Rs41.65-crore turnover G V Films Limited has decided to build an integrated commercial complex housing shopping mall, multiplexes and hotel in 23 Tier 2 cities in Tamil Nadu.

"Branded as GV Studio City, the complex will house a shopping mall, multiplexes (3-5 screens) and a hotel," said A Venkatramani, director.

The cities that are on G V Films radar are thriving business cities of Tamil Nadu. "There are no integrated complexes in Tier 2 cities even though cost is not a factor for the viewers. Further the GV Studio City will become the landmark structure in those cities," he explained.

"The first GV Studio City will be inaugurated in Thanjavur shortly. We are negotiating for land in Coimbatore, Trichy and Madurai," added V Subramonian, CEO.

Each project would cost between Rs25 and Rs.40 crore and will be financed through a mix of debt and internal accruals.

According to Subramonian, the company will first complete the projects in Tamil Nadu before branching off to other states.

Meanwhile the company is continuing negotiations with Shanghai Film Group Corporation of Shanghai Media and Entertainment Group and Growth Global Limited, UK to set up GV Studio City in Shanghai and China.

On the proposal to demerge the company''s operations into three different entities, Subramonian said Bombay Stock Exchange''s (BSE) sanction was awaited. Once thje approval has been obtained, G V Films will approach the Madras High Court for its permission.

He also said the company''s internet division would start operations shortly. The company has bought the internet rights for several Indian and 8,000 Hollywood movies. These will be streamed for a fee.

"We can also dub these movies in Indian languages and release them here. The dubbing cost will be low while the revenue potential is high," Subramonian added.

The company hopes to nearly double its top and bottomline this fiscal.