CHENNAI: Pyramid Saimira Theatre Ltd (PSTL), a leading theatre chain company in India running 100 theatres, has plans to expand across South India to reach 400 theatres by December. Addressing presspersons here on Friday, P. S. Saminathan, Managing Director, said the company will either acquire or take on lease existing theatres in the region.

The company will convert these theatres into digital and do satellite distribution of content.

It has already started this process in the theatres at B & C class centres in Tamil Nadu. These theatres will also function as delivery medium for other entertainment content, as well as educational centres including video conferencing and virtual classrooms, Mr. Saminathan said. Out of the 400 theatres, 250 will be owned by the company and the balance will be managed under a lease agreement. In Tamil Nadu alone, the company will have 150 theatres with 100 run on lease and the balance purchased outright by December.

The company will be spending Rs. 40 lakhs per theatre for converting them into digital. The company has received funding to the tune of Rs. 18.5 crore in the first phase through a combination of promoter funding and private equity.

For the second phase involving an outlay of Rs. 50-55 crore, the company is exploring the option to raise the resources through private equity or public issue at Rs. 90-100 per share.

The company is setting up an integrated network operating centre (NOC) which will convert films into digital and transmit them using satellite medium to various theatres under its chain in a secured encryption mode.

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