BullsEye

The Indiabulls group has revised the blueprint for its foray into multiplexes.BullsEye, the new venture will involve setting up multiplexes as a support activity for their realty business rather than as a standalone venture.Company officials have now decided to restrict the expansion plan to their own properties against the earlier plan to set up multiplexes on leased properties in addition to their own malls.This strategy follows a slowdown in all the group’s core businesses -- consumer lending, securities trading and real estate.
“We need anchor tenants such as hypermarts, multiplexes and food courts at our malls coming up nationwide, as these bring in the footfalls that help the malls to survive. We do not want to be held to ransom by other multiplex owners, who may be already operating in the same catchment area and hence may set up unacceptable terms for setting up shop in our developments,” says a senior Indiabulls group executive.
Indiabulls will, however, invite outside concessionaires to manage food courts in their malls.
While a typical Indiabulls hyper mart will occupy around two lakh sq ft, the BullsEye Multiplex will occupy around 50,000-60,000 sq ft. “This is not a standalone business that we want to scale up or acquire companies just because they are available at a discount,” the senior group executive adds.
The first BullsEye multiplex is expected to come up within a year. “There is not much entry barrier in this business. The technology is standardised and it’s not capital-intensive,” says the executive. The group has already appointed a CEO for Indiabulls Multiplex Services and incorporated it as a subsidiary of one of its group companies. Anil Lepps, CEO of Indiabulls Multiplex, is preparing its business plan.
Analysts say that Indiabulls’ revised plan may be due to the slowdown in the realty market, which has resulted in falling rentals for commercial property and lower sales even though prices nationwide have corrected between 10 per cent and 25 per cent. Lower seat occupancies, due to the lack of major hits until recently, has also hurt multiplexes.