Media One Global to acquire theatres in TN

Chennai: Entertainment company Media One Global Entertainment Ltd is all set to acquire a theatre in Kanchipuram, near Chennai for Rs80 lakh. The company would refurbish the 680-seat theatre with new seats, installing air conditioners and also digitize the movie projection. "The modernisation would cost another Rs30 lakh," said managing director Suryaraj Kumar.

Targeting the theatres in B and C towns in Tamil Nadu, Kumar said the company is in active discussions for acquiring eight more theatres. "Unlike others who lease out the theatres and modernise we have decided to in favour of outright acquisition as that would work out economical in the long run. We are an asset based projection, production and distribution company."

In the production space, the Rs37 crore turnover company is in producing movies and television serials. The company is producing a Tamil movie Dhaam Dhoom starring smart hero Jayam Ravi, Kangana Ranuat and Lakshmi Rai. The film is directed by Jeeva and music is scored by Harris Jeyaraj.

Media One through its UK subsidiary rendered production services to two companies that funded the production of the Aishwarya Rai starred English movie Provoked. According to Kumar the movie is in the process of being dubbed in major Indian languages. The UK subsidiary is now coproducting another English movie titled Telling Lies.

In the area of televison serial production, Media One focuses mainly on non-funded programmes-the company would make the serial while the costs are met by the TV channels. The company has produced serials for channels like Raj TV, Sony, ETV, Zee and Surya. Media One is also producing a 900 episode serial on Lok Adalat for Doordharshan.

On the movie distribution side, Media One has tied up with the Karnataka based Bhagyalakshmi Films thereby becoming one of the largest distributor of Bollywood movies in Karnataka. Bhagyalakshmi Films has distributed all of Eros Multimedia Films this year like Salaam-e-Ishq, Eklavya, Namaste London and Provoked and would be releasing Cheeni Kum this month. "We will distribute seven films in Karnataka," Kumar added.

Queried about the funding source for theatre acquisitions and expansion of other business lines Kumar said, the company would be going for a preferential issue of equity shares to raise around Rs90 crore. "We are in discussions with a domestic investor. We will be invested Rs50 crore for acquiring and modernising the theatres and Rs40 crore towards film production and distribution."