PROJECT FINAL REPORTON

CINEMABY

RAJKUMAR TANWAR

AT

E-CITY BIOSCOPE ENTERTAINMENT P.LTD

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PROJECT TITLE

BUSINESS DEVELOPMENT OPPORTUNITIES IN TIER II & III CITIES IN INDIA FOR MULTIPLEX & CINEMALL

A PROJECT REPORT ON

E-CITY BIOSCOPE ENTERTAINMENT P.LTD

COMPANY GUIDE FACULTY GUIDE================ ==============Mr. VIKAS GARG Prof. AMIT KUMAR GM, B.D Isb&m, Noida

Prepared by:

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Rajkumar TanwarISB&M, NOIDA

PGPBM 2007- 09

Acknowledgements

If words are considered to be signs of gratitude then let these words

Convey the very same my sincere gratitude to E-CITY BIOSCOPE for

Providing me with an opportunity to work with MULTIPLEX and giving

Necessary directions on doing this project to the best of my abilities.

I am highly indebted to Mr. VIKAS GARG, Mr.Ashutosh Mishra VP HR and

Company project guide, who has provided me with the necessary

Information and also for the support extended out to me in the

Completion of this report and his valuable suggestion and comments

On bringing out this report in the best way possible.

I also thank Prof. AMIT KUMAR, ISB&M NOIDA, who has

Sincerely supported me with the valuable insights into the completion

Of this project.

I am grateful to all faculty members of ISB&M NOIDA and my

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Friends who have helped me in the successful completion of this

Project.

INDEX

Serial No Particulars Page no

1 EXECUTIVE SUMMARY 1-6

2 INTRO.ABOUT COMPANY 7-9

3 MULTIPLEX SCENARIO 10-19

4KEY PLAYERS IN MULTIPLEX

20-30

5 POSITIONING OF BIOSCOPE 31-35

6 TARGETED CITIES 37

7 DESKTOP STUDY AND MARKET SURVEY 38-76

8 SOP ON PROPERTY 77-88

9 EMERGING BUSINESS DESTINATIONS 89

10 COST AND REVENUE ANALYSIS OF NEW PROPERTY 90-93

11 AGE WISE CINEMA 94-96

12 SWOT ANALYSIS 97

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13 LEARNING OUTCOMES AND RECOMMENDATIONS 98

14 REFERENCES 99

Executive summary

India currently has 11500 existing screens, 95% are standalone, single screens. These single screen cinemas are poorly maintained as the owners find it difficult to upgrade and renovate their facilities, due to unavailability of organized finance. The deteriorating quality of these cinemas dissuaded viewers and they started using alternative viewing options.

Over the last few years, multiplexes have emerged as a trend in urban India. "Multiplexes" are essentially cinemas with 3 or more screens. They provide a quality viewing experience and are generally located around shopping malls to increase footfalls in these malls. Each screen in a multiplex has small seating capacities in the range of 150-300 seats as compared to single screen cinemas which have capacities in the range of 800-1,200 seats.With around 11500 active screens, India is under screened. China, which produces far lesser films than India has 65,000 screens while the US has 36,000. India’s screen density stands low at 12 screens per million populations. There is a need of at least 20,000 screens as against the current 11500. This gives multiplex operators enough room to grow as the traditional single-screen theatres do not have the financial wherewithal nor do they enjoy tax incentives.

The journey of multiplex which was started in 1997 with inauguration of first multiplex Priya Village Roadshow (PVR) Saket in New Delhi is currently at crossroads roughly a dozen players have entered in the business in small or big way. New players are trying to enter this sector and the existing players are busy expanding their horizons. The multiplex has gone beyond the metros to redefine entertainment in Tier 1 and 2 cities like Lucknow, Indore, Nasik, Aurangabad, Kanpur, and Amritsar. The good news is at present roughly 70 percent of the total

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box office collections in the country come from non metros.Understanding Multiplex BusinessIn last few years, strong economic growth, fall in interest rates, increase in real estate price, and increase in consumption levels, are constantly fueling multiplex boom in India. Moreover, multiplex operators are attracting movie enthusiasts, by combining movie viewing with food courts, branded food and apparel outlets and gaming that provided high quality viewing experience.

The entertainment industry growth is 19% in India. And total market worth is about 51,300 crore in India in year 2008.

The multiplexes are often characterized by a good ambience, comfortable seating, air-conditioning, and modern infrastructure. The multiplex has various halls with different seating capacities ranging between 200 to 500. This allowed the Multiplex operator to choose a theater depending upon the movie’s potential which help them utilize higher capacity utilization. Multiplex also help utilize show timing based on the screening duration, the number of shows could be maximized. Moreover, depending on the movie’s performance, the exhibitors had the option of moving it to theatres with different seating capacities and show timing. The multiple movie options also offer moviegoers the opportunity to see the movie of their choice.

Multiplexes offer several economic like better occupancy ratio, greater number of shows. They make more revenues in the first week of release by showing movie on more screens and reduce the number of shows with decreasing demand. The other multiplex advantage comes out of sharing facilities such as the basic amenities, F&B and manpower.

The multiplex model was built around a primary anchor – movies, though the revenue flow also happens through several income-generating channels other than box-office collections. The other revenue generation channels are food and beverage, product launch rentals and various other promotions by companies. In the recent past luxury multiplexes have come up with new experiences like partying in the theaters while the movie is running.

Multiplex owners, try and increase their income and reduce the expenses to increase their profitability. On the one hand the primary sources of multiplex income are: Patron’s spending viz. ticket sale, F&B, and parking, Advertisement Income, Management fee and Revenue sharing. On the other hand the prominent components of expenses are: Cost incurred for the working of a multiplex are: Distributor Share, F&B Cost, Lease Rentals, Other Operating costs, and Entertainment Tax. The multiplex owners are working on different business models to increase their reach and profitability. Business models are:

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Ownership Model: In the case of fully owned model the multiplex owner buys the land and constructs a multiplex or buys a part of a shopping mall and sets up the multiplex within. In the ownership model, capital cost is high but the multiplex operator benefits from escalating real-estate prices. This model works where lease rentals are very high and capital costs are low as the escalating realty prices could force higher rentals adding to fixed costs.

Leased property model: In Leased property model, an operator invests in only fit-outs and not in the whole property and pays a fixed rent to the mall owner. This model is more prominent in areas where mall development is slow but the property location is ideal for movie exhibition. In the lease model multiplex operator has mostly variable expenses but company shells out more money on rent, thus decrease profitability. Majority of the multiplexes are coming up in leased properties, they can expand at a faster rate with less capital requirement and break even faster.

Theater management model: In this model the multiplex operator provides management services to the third party operator. In this form of business both the parties work on revenues sharing or fixed fees for property management or a combination of both.

The Major PlayersMultiplex, in India is witnessing unprecedented growth. A few big corporate house have already entered the business and others are planning to venture in the business through acquire existing players. However, industry experts rule out any consolidation in the industry. They believe market is still in the growth stage and there are enough opportunities for the existing players. In current scenario competition is heating up among the existing players. Adlabs, PVR, IOX, Fun, Fame, DT Cinema, Satyam Cineplexes have chalked out big expansion plans to increase the number of screens in the next few years to get better share of movie revenues.

PVR Limited is the oldest player in the multiplex business in India. Ajjay Bijli, Managing Director of PVR Limited, after bringing the multiplex concept to India, has created the largest multiplex chain in the country. The company currently operates 24 cinemas with 95 screens across 14 cities, and expects to have another 50 multiplexes operational by end of 2008. They are developing five multiplexes in association with Prestige Group at Bangalore, Kochi, Hyderabad and Mangalore.PVR works across spectrum from PVR Premiere which is designed for the urban elite, with

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ticket prices ranging from Rs 150-750 to the PVR Talkies which is low-cost multiplex in towns such as Aurangabad and Latur, where tickets are priced at Rs 40. The various multiple formats that straddle across income segments enable them capitalise on increasing footfalls and revenue. What makes PVR special is that it has been profitable right since inception.

INOX (Indian Oxygen) Leisure Ltd was a diversification venture of the INOX Group, a 100% subsidiary of Gujarat Flurochemicals Ltd. INOX has 24 multiplexes with a total of 84 screens in 18 cities – Pune, Vadodara, Kolkata, Mumbai, Goa, Bangalore, Jaipur and others.

They have plans to expand into other cities like Chennai, Hyderabad, etc. by the financial year 2008. Inox has one of the highest ticket prices per seat in the country and, yet, has one of the best occupancy rates in the industry. No wonder Inox is the most profitable player in multiplexes business.

Adlabs Films Limited is India’s leading motion picture processing laboratory, set up the country’s first IMAX Dome Theater in Mumbai. Adlabs has 163 screens spread over 61 cities in India besides an international network of 220 screens spread in the East, mid-West and some parts of the United States. They are actively looking at expanding its business in countries like the U.K, Australia Malaysia, Nepal, Mauritius, and Singapore.Adlabs Cinemas has launched 6D cinema experience at Agra, which is designed to cutting-edge visual and audio effects allowing audience simultaneous experience of sight, smell, sound, touch and motion.

Fame a part of Shringar Group which runs single screens and multiplexes. Fame has 14 properties and 48 screens operational. It plans to take the total screen count to 75 by 2008. They have plans to have presence in 60 sites with 250 screens by financial year 2011.

Fun Multiplex has uniquely positioned their cinema properties as epicenters of new economy suburbs in each city. Fun Multiplex offers the finest entertainment experience provider, enabling superior cinema viewing and real time leisure experiences to its patrons by combining the best in technology, comfort, leisure and hospitality.Fun Multiplex holds a leading position in the Indian multiplex market. It operates 53 cinema screens in 13 cities and sixteen locations – Ahmedabad, Mumbai, Chandigarh, Hyderabad, Guwahati, Delhi, Ghaziabad, Lucknow, Agra, Jaipur, Bangalore, Panipat and Gulbarga. The company was planning to construct 35 multiplexes with 140 screens and these were expected to

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begin operations by the financial year 2008. In addition, the company has planned to acquire additional screens and increase its screen count to 1500 by 2011.

Satyam Cineplexes, another popular chain, is part of the Superior Group. Satyam Cineplexes is planning to infuse around Rs 250 crore to set up 104 multiplexes across the country. The 104 screens planned by Satyam will be in cities like Indore, Ludhiana, Dehradun, Kolkata, Rohtak, among others. Satyam is targeting tier II cities in the country instead of having more screens in the metros. This is mainly because of the high real estate prices in the metros.

CineMax, the Kanakia Group theatre, is one of the largest exhibition theatre chains in India operating 19 multiplexes with 56 screens. CineMax has strong presence in Mumbai and they are planning to expand nationwide rapidly.

CineMax offers premium services with recliner seats, massage chairs, any time tickets machines, luxurious and expensive interiors and the best of customer service. CineMax to enhance the customer experience started a call center hub at Mumbai called “Noline” to provide information about screenings at its theaters, enable telebookings, etc.

DT Cinemas, a wholly-owned subsidiary of the DLF Group, operates multiplexes in Delhi, Ludhiana and Jalandhar and Gurgaon. DLF planning to set up another 120 malls in different parts of the country and DT Cinemas would be the chief attraction in most of these malls. Today DT Cinemas has seven operational multiplexes with 22 screen and they have plans to invest Rs 1,250 crore to open 500 screens in the next 4-5 five years. DT Cinemas has presence in NCR Ludhiana, Jalandhar and Chandigarh and apart from the north Indian cities, DT Cinemas also plans to set up multiplexes in Hyderabad, Chennai, Kochi, Bangalore, Mumbai, Pune, Ahmedabad, Goa and Kolkata.

Apart from the existing multiplex chain the industry veterans like Mukesh Ambani is also venturing in this sector. Mukesh Ambani’s Reliance Retail and Yashraj Films may float a 74:26 JV to set up multiplexes run entertainment channels and produce content for television channels. The will use the upcoming malls of Reliance Retail nationwide to set up multiplexes. Wave cinemas, yet another multiplex chain promoted by the Chadha group, had multiplexes in Lucknow, Noida and Kaushambi have aggressive expansion plans.

SustainabilityTechnology improvements are likely to be at the forefront in driving the growth of the Indian Film Industry into the future. Going Digital would be the mantra for s industry over the next two-three years. It will help multiplex deliver quality content to consumers at a faster pace and

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at a more economical price. Though multiplex has favorable environment for growth but there are a few negatives working against the growth of the multiplex industry in the country.

Entertainment Tax withdrawal is one of the biggest concerns for the multiplex industry as success of a multiplex business model in terms of financial viability hinges to a great extent on the entertainment tax exemptions being received by them. The other serious concern is risk of timely execution of planned projects. PVR, Fame, INOX, Adlabs in past have faced problem of delay in handover of the completed civic shell by the developer and delays in getting the necessary clearances from the government. The other big concern is movie piracy, which has reduced the theatrical window period. The movie piracy eats film industry revenue by almost 14%. This has encouraged the industry to reduce the theatrical window period and release the film faster on other movie viewing platforms like satellite, DVD. Moreover, Multiplex revenues are seasonal in nature as the production houses prefer to generally release big-budget films

During the summer holidays or during the festive season to attract maximum umber of patrons to the cinema halls.M&M is also entering in cinema industry.

Conclusion

Multiplex, in India, is the new business model for the film exhibition industry. It is transforming movie viewing habits in India. It is set to take over a significant slice of the entertainment market of India. Today multiplexes constitute just 1% of the total number of cinema halls, and 4-5% of the total screens in India. The industry experts believe that it is beginning of the end of

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single screens in India as the multiplexes with certain advantages such as multi-screen potential, flexibility in operations; scope for other commercial viability will rule movie exhibition business in Indian.

1. Intro about company

Bioscope Cine malls is a chain of value cinemas proposed to be set up in the Tier 2 & 3 cities of India, attached to a retail / mall complex with food and shopping as additional attractions

The primary aim is to provide a great cinematic experience that is comparable to the best in the industry at an unbeatable price point

Ideally, Bioscope would be positioned somewhere between the plush Metro-Centric multiplex and the old single screen cinema in small towns across North and West India.

Ever since it’s opening on the January 18th 2008, the film collections have beaten most of the plush multiplexes like Inox, EP, First Cinemas, Cinestar Adlabs, Galaxy Adlabs & Fun located in the capital city of Jaipur, which is an achievement considering that Jaipur being a capital city is an “A” center while Jodhpur is a “B” center.

Ajmer Second Floor slab completed, Third Floor slab in progress. For Bhilwara and Pali footing completed, base slab in progress.

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Sikar registry completed. Drawings to be submitted for approval. Kota Registry completed, changing of building parameters in Process with RIICO. Design being altered. Beawer Registry done on 19th Jan ’08. Designs being finalized. Chittorgarh land purchase / conversion in final stage, purchase and registry

will be done after this.

About E- City Bioscope Entertainment Pvt ltd

Vision- Bioscope Cinemas aims to provide a consistent and unmatched customer

experience at value prices to become the preferred entertainment destination in developing

towns across India.”

Mission-

Our Mission is to create around 250 screens under the ‘Bioscope’ brand by 2013/14

through:

• a multi- pronged strategy and versatile business model that will deliver

growth objectives profitably

• building a system and process driven organization focused on speedy and

efficient project execution and

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• delivering a memorable cinema viewing experience at an unbeatable

customer value / price point

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HEAD OFFICE- MANAGEMENT TEAM

Multiplex Industry - CURRENT SCENARIO

India's craze for films has not been fully exploited by the "Film Exhibition" industry due to the

lack of screen density in the country coupled with the poor quality of screens. "Multiplex

Cinemas" offer an alternative to tap this potential by providing a quality experience to the

viewer as well as economies to the multiplex operator.

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"Films" has been one of the integral components of the Indian entertainment industry

contributing nearly 27% of the total revenues of the entertainment industry. Besides, films also

contribute to other components of the entertainment industry like music, television and live

entertainment. The Indian film industry is one of the most complex and fragmented national

film industries in the world comprising of a number of regional film industries like Hindi,

Tamil, Telugu, Kannada and others. The Hindi film industry is the most popular among them.

Though India produces the largest number of films in the world (Approximately 1000 per year),

it accounts for only 1% of the global film industry revenues. In spite of being over 90 years old,

the Indian film industry was accorded the status of industry only in 2000. Over the years, the

Indian film industry has been highly unorganized as film financing was dependant on private

and individual financing at extremely high interest rates. Only recently, the industry has got

access to organized finance. With vertical integration taking place between producers,

distributors, exhibitors, broadcasters and Music Company’s corporatization is now taking shape

in the Indian film industry. We believe, that corporatization, will bring about transparency,

accountability and consolidation which will help to improve the overall profitability of the

Indian film industry as well as reduce piracy and leakages which presently account for 14% of

the Indian film industry's revenues.

Now when we talk about multiplex, the movies playing at theatres or multiplexes is also called

as film exhibition. Multiplex industry is based on film industry, so film industry should not be

untapped in the project.

An outline of film industry –

1. The Indian film industry is biggest in terms of number films produced in a year.

2. When we compare revenue with U.S. film industry which was US$9.49 billion in 2004

and revenue of Indian film industry was Rs.59 billion i.e. U.S. $ 1.3 billion.

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3. In 2005 the film industry revenue rose to about rs 72billion.

4. This is because of the mushrooming of multiplexes across India.

Film Industry – Overview

57%

14%

2%

2%

9%

4%

12%

Domestic Theatrical Leakages Piracy Cinema Ads

Music Satellite DVD/VCD

Overseas Theatrical

Nearly 80% of Indian industry revenue comes from domestic and overseas theatrical; this

clearly signifies the onset and potential of multiplex in Indian film exhibition sector.

Figures to emphasis on-

The gross box office in India, stood at rs.465cr in 2004 and rose by 37% to rs.640cr in 2006

Industry can be divided into two segments-

- single and double screen cinemas

- Multiplex cinemas i.e. three screens or more.

As of march, there were approximately 11,000 cinemas in India of which 73 were multiplex

with total of 276 screens. In 2007, this number rose to 117 multiplex with 436 screens.

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Multiplex constitute only 2.3% of about 11,000 cinema halls in India, but they collect around

28% to 34% of the box office take care for the top 50 films in 2007.

More than 100 additional multiplexes with 300 screens are slated to commence operations by

end of 2007, a growth rate of 80-100%

An increase in the number of multiplex screens should result in an increase in film exhibition

revenues, so the opening of new multiplexes represents a significant growth opportunity for the

industry.

Number of screens per million -

30 43 45 46 52 53 6177

117

120

20

40

60

80

100

120

140

UK

BELGIUM

GERMANY

SPAINIT

ALY

IRELA

ND

DENMARK

FRANCEUSA

INDIA

In India average number of screens per million of population is just 12 compared to an average

of 58 in western countries.

India needs approximately 20,000 screens to cater the entire cinema viewing population.

FILM EXHIBITION INDUSTRY:

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Source - GEOGRAPHIC DISTRIBUTION OF THETRES ACROSS INDIA – FICCI-

E&Y REPORT 2004

1. Andhra Pradesh has the maximum number of theatres.

2. 50% of the total theatres are in Andhra Pradesh, Tamil Nadu and Kerala

THE FILM EXHIBITION INDUSTRY – MULTIPLEX

Number of

multiplex

Number of

screens

Number of

seats

Seats Per

Screen

3 screens 64 192 67,200 350

4 screens 34 136 40,800 300

5 screens 9 45 13,500 300

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6 screens 7 42 10,500 250

More than 6

screens

3 21 4,494 214

117 436 1,36,494

Majority of multiplexes have 3 screens.

Key players-

Six companies are emerging as major exhibitors, with expanding, albeit still relatively small,

circuits. All are intending to develop countrywide circuits and all, except E-City Ventures, have

completed initial public offerings to fund their extensive construction plans.

The six companies in the table below and two other digital cinema operators are profiled in

more detail below. There are numerous other small multiplex operators developing on a

regional basis and in future many of these will be acquired when the market moves towards

consolidation.

In 2007 DT Cinemas, owned by DLF Group, announced a partnership with Warner Bros and

Sony Pictures to develop multiplexes. It plans to build 200 screens by 2010. Wave Cinemas,

Sathyam and Velocity also have expansion plans. In addition, the South Korean exhibitor, Megabox with

Standard Chartered Private Equity, is reported to be investing in an Indian operator.

Company No. of properties No. of screens

PVR cinemas 14 101

Adlabs 65 170

E City Cinemas 9 27

Shringar 7 21

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Inox 24 84

Wave cinemas 3 9

Cinemax 19 56

Fame 16 61

Six largest multiplex operators of India operate 162 screens across 25 properties with capacity

of 56,700.

These six multiplexes constitute 46%, 37% and 41% of India’s total multiplex properties,

screens and seats respectively.

KEY PLAYERS IN MULTIPLEX PVR CINEMAS :

Strong operational performance- PVR is one of the leading multiplex operators with very strong performance on operational parameters. The company has been able to establish itself as one of the premier entertainment destinations, which has resulted in the highest occupancies, footfalls and spend per head as compared to all of the other multiplex operators.

Aggressive expansion plans- PVR intends to open ~100 screens in the coming two years. We are assuming a 50% discount to these plans for our estimates, in order to rule out mall delays. Among the new screens, 20-30 will be high end PVR Premiere screens with ticket prices in the range ofRs150-Rs750. It has already

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opened 17 out of the total 30 screens that we expect for FY09E, thus providing more certainty to our estimates.

Foray into co-production- PVR has, through PVR Pictures, entered into film co-production, after its first movie met with beginner’s luck. It has 4 movies lined up for FY09E and intends to ramp it up to 8-10 movies in FY10E. We expect the movie business to operate at 13% EBITDA margin and contribute 11% to the total revenues by FY20E.

Leading Multiplex operator: PVR is one of the leading multiplex chains in India with 101 screens under operation in 14 cities at present. PVR has been successful in building a lifestyle entertainment brand because of its focus on customer service and quality of experience. Because of the strong brand and presence at prime locations, PVR has found a very encouraging response from the customers. It attracted 18 million patrons with occupancy ratio of 41% in FY08, both the highest numbers among all the multiplex players. Today, it contributes ~10% plus to the total domestic box office collections in the country, showing a clear dominance.

PVR Premiere to increase ATPs: The Company has recently started a chain of luxury cinemas branded as PVR Premiere which will be present only in the metros and other affluent cities. These screens provide a very high quality digital cinema viewing experience in luxurious setting. Average ticket price for these screens is in the range of Rs150-Rs750, as compared to the normal ticket price of Rs70-Rs250. From 2 screens at present, PVR Premiere will reach 30 screens by FY10E which will help increase the overall ticket revenues.

JV with Major Cineplex to strengthen presence: PVR has formed a 51:49 JV with Major Cineplex, the largest exhibition player in Thailand, to further strengthen its presence in the lifestyle entertainment space. The entity, branded as PVR Blu-O Entertainment, will open bowling alleys, karaoke centers, ice skating rinks and gaming zones across the country. We believe that this venture is a well thought out move and complements well PVR's positioning as a leading out of home entertainment provider. With a strong and experienced JV partner like Major Cineplex, execution will be fast paced. However, due to a recent start, we are not factoring in any of the traction from this initiative as of now.

Entertainment tax burden to decline: PVR started its operations from those territories where entertainment tax exemption was not available, e.g. Delhi NCR region. At present, it pays E-tax on 16 out of a total of 22 properties. E-tax as % of gross ticket revenues is amount the highest for the company at 24% in FY07.We

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expect E-tax % to come down to 18% in FY09E and 17% in FY10E due to more screen additions in areas where E-tax exemption is available like Punjab, West Bengal and Mumbai. Recently, Delhi government has lowered the entertainment tax rate to 20% from the earlier 30% levels. This will help PVR the most as it operates 46 screens in that region.

2. INOX LEISURE

Consistent performer- Inox has shown impressive operational performance, delivering a 65%CAGR in topline in the past 5 years with the highest EBITDA margins in the multiplex space. The company has shown remarkable pace of expansion in the last 3-4 years with commendable speed and quality of execution

Expansion in tier I and tier II cities to be value accretive- Inox has more than 50% of its screening the tier I and II cities, which has rewarded the company very well in the past. It plans to add ~100screens in the coming 2 years, 70% of which will come up in select tier I and II cities. We believe that the move will create

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value for the company as these locations are comparable to metros at the EBITDA level.

Impressive capacity ramp-up over the last 4 yrs: Inox Leisure (Inox) was set up as part of a diversification strategy by its parent company, Gujarat Flurochemicals. The company opened its first multiplex in Pune in 2002. Since then, the company has come a long way as one of the leading premier multiplex chain operators with a strong brand recall. Starting from just 4 screens in 2002, Inox has ramped up its presence to 84 screens in 24 locations at present. While registering a strong capacity growth in the past 4 years, the company has also been very successful in building a strong entertainment brand for its cinemas. Operating in an industry marked by execution delays, both the speed and the quality of expansion are commendable considering that the promoters didn't have prior exposure to the exhibition industry.

Top 25 cites - compelling growth stories Crisil Research has identified 25 cities where consumption potential is high due to the strong economic growth and increasing urbanization. Taking organized retail market size as a proxy for future growth potential, they have identified 25 locations that have the potential to become high consumption centers in the next 3-4 years. This combined with the past experience of the company shows that there is a lot of room for leisure consumption at these centers and hence the move into these cities will be value accretive.

E-Tax exemptions: Inox operates 24 properties but pays entertainment tax only on 7 of them. 13 properties are fully entertainment tax exempt and 4 are availing exemption partially. This has resulted in an E-tax payment of 10% as a proportion of gross ticket revenues during FY07. It has risen to 14% in FY08as it opened two non E-Tax exempt properties and 2 of its properties became eligible to pay E-Tax.

Move to create value for the company: We believe that the expansion in these locations is a well thought out move and will create value for the company. While it's true that the average ticket prices in these locations are lower than those in the metros, it gets compensated with far lower rentals and staff expenses on the cost side. Moreover, it gives the company access to prime locations in these cities which provide assured footfall growth has the company has seen in the past.

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3. FAME INDIA

Fame India (Fame) is one of the smaller multiplex operators among the listed Indian exhibitors, with a current slate of 16 properties and 61 screens under operation. Boasting of a predominantly urban presence, especially in Western India, Fame has been disproportionately focused on Tier-I cities. With 8 of its currently operational 16 properties located in Mumbai, Fame is looking to aggressively add to its existing screen count and establish a pan-Indian presence.

Heavy skew of properties towards Tier-I locations: 8 of the company's currently operational16 properties are situated in Mumbai, with three more lined up before Mar'09. This translates into Mumbai accounting for a whopping 42% of the company's proposed seat count (by Mar'09). In fact, the two Western states of Maharashtra and Gujarat are likely to account for 75% of the company’s seat count by Mar'09. This skew towards Tier-I cities is likely to translate into marginally improving ATPs in the near-term on a full-year basis from FY09 onwards. Fame currently commands an ATP of~Rs97, a discount of 21% and 24% to that of Inox and PVR respectively.

Scale to bring in margin expansion triggers: Fame is among the smallest exhibitors in the multiplex space currently. As of FY08, Fame commands fairly low EBITDA margins essentially because of a low scale of operations. Given the high degree of operating leverage (characteristic of the business), we believe that

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EBITDA margins would improve once the company is able to expand its screen and seat count.

4. ADLABS FILMS

Integrated Play on the Media & Entertainment Sector: Adlabs is the only player at present that has presence in all of the three major segments in movies i.e. production, distribution and exhibition. The integrated model adopted by Adlabs gives it a competitive edge over others in terms of capturing value at each level of the value chain. However, it also exposes the company to more risks as risks of one segment are prone to disturb the other segments.

Exhibition Segment - The largest player: Adlabs has 170 screens at 65 properties under operation at present, making it by far the largest player in the exhibition space. It has a two pronged strategy of expansion - opening multiplexes at the prime locations in the metros and other cities and expanding through renovating existing single screen theatres in the tier II and III cities which has helped the company add more than 100 screens in the last two years.

Expansion through acquisitions: Since ADAG group has picked up the majority stake in the company, it has shown even more aggression in its expansion plans by acquiring Rave Cinemas, chain of multiplexes in India and Lotus Five star, an exhibition player in Malaysia. Both of these acquisitions have given Adlabs a head start in its expansion plans as compared to other players

Future Plans: Adlabs has forayed into production and distribution of film and TV content since 2005. It plans to release 6-7 movies per year with varying genres and

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budge. On the T.V. content side, it has produced 8 shows adding up to 214 hours of programming in FY08. In the next year, it plans to launch 15 shows on commission basis.

Film Processing - Leader controlling 70% of market share Adlabs started as an ad films processing facility. The company has made fast strides in this business and today controls 70% of the film processing market in the Western part of the country. It has set up film processing facilities in Chennai and Kolkata to tap growing regional markets there. The company has been awarded Kodak Image care Program Negative Processing Accreditation recently. This establishes the film processing division among some of the highly equipped units globally, thus opening doors for business from other countries. The film processing division is a high margin business contributing 70% to the total EBIT in 9MFY08. With the growing fold of the company in film entertainment business, this division is expected to benefit in the coming years.

Film Production & Distribution: Adlabs entered the production business in 2005; the company recently released its first home production Johnny Gaddaar. Adlabs has signed long term contracts with key Bollywood talent like Vipul Shah, RGV, Harry Baweja, Akshay Kumar, and Ashok Amritraj. It plans to release 6-7 movies per year with varying genres and budge. On the distribution front, it is present in Mumbai, Maharashtra, Gujarat, Delhi, UP, Punjab, Bengal, Tamil Nadu, Hyderabad and My sore territories. These states contribute around 80% to the domestic box office collection. Some of the movies distributed by the company include Guru, Black Friday, Bheja Fry Spider-Man 3, Vivah and Harry Baweja Love Story 2050.It has set up strong overseas distribution network through its US and UK subsidiaries. In addition to this, the company has mandate to distribute all films produced by Reliance Entertainment Big Motion Pictures.

T.V. Content Production: Adlabs acquired a 51% stake in Synergy Communications, which is a well known content production house for television, associated with famous game shows like Kaun Banega Crorepati, Mastermind and Jhalak Dikhhla Jaa.The division produces only commissioned programmers and has produced 8 shows adding up to 214hours of programming in FY08. In the next year, it plans to launch 15 shows including Dus Ka Dum,Aap Ki Kachehri, Bindass Champ, Kya Aap Panchvi Pass Se Tez Hai, Angrezi Mein Kehte Hain.

Adlabs has shown the most aggression in its expansion plans so far, mainly because of access to the deep pockets of ADAG group. It has entered into an agreement with Rave Entertainment to acquire the right to conduct cinema

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exhibition business at the 23 screens that the group is developing in NCR, Uttar Pradesh, Punjab and Haryana. This gives the company access to 6 properties, 4 of which are tax exempt. Recently, the company has acquired majority skate in Malaysia-based Lotus Five Star Cinemas and will be operating a 51 screen cinema chain in across Malaysia. The chain will be catering to the Indian, Bangladeshi and Pakistani population in the country by playing Hindi and Tamil films along with Hollywood, Chinese and Malay movies.

5. CINEMAX

Cinemax India (Cinemax) is one of the smallest multiplex exhibitors within the listed space with 56screens across 19 properties, a majority of them concentrated in the Mumbai territory. The company has a predominant presence in the Western region and is the largest exhibitor in the Mumbai territory with a 35% share of the multiplex screens in Mumbai. Cinemax is now focused on expanding its presence across the rest of India and is seeking to aggressively add capacity across other regions

Aggressive capacity addition plans: The management at Cinemax has guided for adding 41screens during FY09E followed by 72 screens during FY10E. The company employs two criteria for selection of properties: a payback period of less than 4 years and a target RoE of 18-20%.

Tapping ancillary revenue streams: Cinemax has been actively seeking means to tap ancillary revenue streams by foraying into the branded food court business and

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the gaming business. In an effort to reduce its over-dependence on ticket sales (that currently contributes 70% of the operating revenues), the company is focused on adding other ancillary revenue streams to bolster the spender head from current levels. Cinemax is targeting F&B contribution within overall revenues to increase by about 300bps from current levels of 14%.

Leased operating model to help improve margins: Among the 19 properties that Cinema currently operates (as of Jun'08), 8 are owned while the other 11 are operated on the leased model. With more properties being added on the leased model, the proportion of owned properties within the overall mix would reduce. This shift is likely to push the rentals up by about 600bps (from 8% of the topline), which is likely to be offset by an equivalent decline in overheads such as personnel costs and administrative expenses.

Future expansion plans: On the exhibition front, Cinemax intends to add 41 screens duringFY09E and 72 screens during FY10E. The company has also forayed into the movie distribution space with 'Kismet Konnection', which is scheduled for an all-India release on 18th Jul'08. Cinema has acquired the distribution rights for the Mumbai and Punjab territories. The company also intends to form a separate SPV for movie production with a total investment outlay of Rs1bn over the next two years. Cinemax plans to raise Rs1bn for this initiative of which Rs700mn will be spent towards production and the rest towards distribution. At its CMP of Rs87, the stock is currently trading at 18x its fully diluted FY08 EPS of Rs4.91. We do not have a rating on the stock

Property selection criteria: Cinemax applies two criteria for selection and addition of properties to its existing count. Firstly, the company targets an Roe in the range 18-20%. Secondly, Cinema targets a payback period of less than 4 years for selection decisions. The management has guided for the following seat / property matrix over the next 3 years.

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Some small players –

Shringar Group

Shringar Group was formed in 1999 by the Shroff family. It operates an exhibition business,

Shringar Cinemas, a distributor, Shringar Films and a food court business called Big Pictures

Hospitality Services. Shringar Films is sole distributor for Paramount Films of India in the film

territories of Maharashtra, Gujurat (excluding Mumbai and its suburbs), Central Province and

Central India.

In 2001 the company obtained private equity funding from GW Capital. Further funds were

raised in April 2005 with an initial public offering on the Indian stock exchange. Of the INR

431.9 million raised, INR 337 million was earmarked for expanding its cinema circuit and INR

29

60 million for investing in its distribution business. As some building projects have been

delayed, some funds have been used to repay debt. In April 2006, Shringar Group raised US$20

million as a Foreign Currency Convertible Bonds issue, equivalent to INR 901 million. INR 266

million will fund building new cinemas while INR 70 million will go towards refurbishing

existing cinemas.

Despite the sums mentioned above the company’s cinema circuit is still relatively small. At

October 2007 it operated 13 cinemas with a total of 44 screens under the FAME brand name.

Shringar Cinemas’ strategy is to focus on large metropolitan cities including Mumbai, Pune,

Bangalore, Chennai and Kolkata where there is a larger middle class audience base and a higher

average ticket price can be obtained. It is also looking at potentially untapped areas and may

acquire some single screen cinemas in order to consolidate its position in some locations.

Revenues from exhibition grew 87% between the financial years 2006 and 2007, while income

from concessions grew by 79% due to new cinemas coming into operation. The big gain in

other income was due to receiving a large entertainment tax rebate and exchange rate gains

from the bond issues.

E-City Ventures

E-City Ventures is part of the Essel Group, a major conglomerate with interests in media,

entertainment, packaging and technology. At July 2007 E-City Ventures operated 14 cinemas,

with a total of 50 screens under the brand name Fun Cinemas. The company has targeted

affluent city suburbs for its sites.

The company has rapid expansion plans announcing that it will operate 1,550 screens by 2011:

300 in its premium multiplex Fun Cinemas circuit; 250 in a lower value branded circuit called

Talkie Town and 1,000 digital screens. It will invest INR 8 billion in new cinemas.

A subsidiary of E-City Ventures, E-City Films, releases 15 to 20 Hindi films a year and has

plans to distribute up to five other Indian language films in markets such

as Andhra Pradesh and Tamil Nadu. The company also distributes independent English

language films such as Million Dollar Baby, Alexander and Babel.

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Its digital cinema arm, E-City Digital was formed in 2004. At July 2007 its digital network

totalled 90 screens. The company’s strategy is to provide end-to-end encryption, distribution

and projection technologies for cinemas. It will either lease cinemas on a long-term basis,

revenue-share or simply install a digital system for a service fee. Equipment can also be bought

on hire-purchase.

.

Pyramid Saimira

Pyramid Saimira entered cinema exhibition in November 2005. Rather than building new

cinemas the company’s strategy is to purchase or lease, upgrade and manage existing cinemas

equipping them with e-cinema technology and forming a Mega Digital Theatre Chain. It also

distributes films to its network of cinemas.

The company has formed agreements with Real Image for servers and software; Prasad Labs to

convert films into HD format; TataNet, a telecom’s provider to network its cinema circuit,

Arasor International for laser projectors and integration of hardware and software; and Bharat

Digital for projectors.

Although its strategy is different to its competitors, it has accessed funding in the same way. In

December 2006 Pyramid Saimira listed on the Bombay and National Stock Exchanges and

raised INR 84 million with its initial public offering. This money is to be used to renovate

cinemas and install digital equipment. Citigroup Venture Capital invested US$ 100 million in

private equity in September 2007 and the company completed a US$ 90 million issue of

Foreign Currency Convertible Bonds. Proceeds from the issue will be used for foreign

acquisitions.

Pyramid Saimira is expanding and diversifying rapidly. It currently operates 371 screens

primarily in the Southern Indian states of Tamil Nadu and Andhra Pradesh and has begun

targeting Karnataka and Kerala. By 2010 Pyramid Saimira plans to manage and operate 2,000

screens and franchise out a further 4,000 in India. It is entering the food court business and

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intends to open ten food courts by March 2008. It will also have online marriage bureaux

owned by Kalyana Malai situated in its cinemas.

The company has also begun expanding overseas. Pyramid Saimira has formed a subsidiary in

Singapore focusing on producing and distributing Indian films and content. It has formed a joint

venture in Malaysia with the film distributor and real estate operator, Asian Integrated

Industries, to establish a 150 screen digital cinema circuit there and distribute films across it.

Finally, in November 2007 it purchased the American cinema circuit, radio station and

magazine, FunAsia.

UFO Moviez

Founded in 2005 UFO Moviez is a subsidiary of Apollo International owned by entrepreneur

Raaja Kanwar. The company installs e-cinema quality digital cinema systems and distributes

digital films along its network. Currently UFO Moviez has a network of 918 screens and plans

to take this to 2,000 by the end of 2008. UFO Moviez has also branched into digital cinema

advertising under the brand name Value Ads.

In January 2007 the company received US$ 22 million from the private equity firm 3i to help

finance its expansion plans. It is also looking at expanding overseas into Mauritius, Sri Lanka,

Dubai and Europe.

Multiplex growth drivers

Multiplexes have several advantages as compared to single screen cinemas

Multiplexes have access to prime locations as a large number of mall developers are

consideringsetting up movie theaters to attract footfalls in the mall. Multiplex operators

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are emerging as anchor tenants for malls and are therefore being offered attractive rental

rates.

Multiplexes offer a large variety of movies for their viewers as a number of movies are

running simultaneously in a single property. Typically, 7 movies can run simultaneously

in a 4 screen multiplex.

Occupancies in multiplexes are higher as compared to single screen cinemas as the

seating capacity per screen in a multiplex is lesser than that of a single screen cinema.

Different screens in a multiplex have different seating capacities. The multiplex operator

can therefore choose to show movies on a larger or smaller screen based on the expected

potential of a film. Besides the multiplex operator can also choose to show movies on

larger screens in the first few weeks of release and later continue to show this film on a

smaller screen.

Multiplex operators can charge different prices depending on the time and popularity of

the film.

A multiplex operator can maximize the number of shows as multiple films are available

for screening. Based on the screening duration of different films, the multiplex operator

can efficiently programme his shows to maximize the number of shows and thereby

generating higher number of patrons.

Multiplex operators use common manpower for several screens and hence have better

cost efficiencies.

Multiplex operators can offer a wide range of food and beverages as multiple screens use

common food and beverage facilities. This wide range helps in increasing the F&B spend

per patron.

Multiplex operators can achieve significant operating efficiencies due to better film

management and common vendor relationships.

Due to the large number of screens, multiplex operators have better bargaining power

with distributors.

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Entertainment tax, levied by the state, is the main levy on the exhibition industry. This

varies from 30% to 100% of the net ticket price from state to state. Recently certain states

have announced entertainment tax holidays for newly constructed multiplexes. This is

likely to increase the profitability for these multiplexes.

Drawbacks of a Multiplex

Multiplexes charge a 30%-50% premium on ticket prices as against standalone cinemas. This is

one the major drawbacks of multiplex operators as multiplexes attract only a section of the

society consisting of the Rich and Upper Middle class. The premium charged by multiplexes is

for the better ambience as well the high quality audio and visual effects.

In certain areas, multiplexes have become a cause for traffic jams. People residing near

multiplexes find this to be a nuisance. To set up a multiplex, a series of approvals and licenses

have to be acquired by the mall developer as well the multiplex operator. This is due to the

heavy regulation imposed by state governments. These regulatory issues are a cause of concern

as they cause delays in setting up a multiplex.

Emergence of tier 2 and tier 3 cities-

Initially ,multiplex projects were started in the metros due to the availability of an assured

audience.more recently ,indias multiplex bandwagon has gone beyond the metros to redefine

entertainment in ‘B’ and ‘c’ class towns.while the first phase saw emergence of multiplexs in

metro and now this growth is spreading to tier2 and tier3 cities like

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lucknow,indore,Aurangabad,Kanpur,jaipur. Indian retail is buzzing not only in big cities and

state capitals, such as Chandigarh, Lucknow and Jaipur, but also in small towns such as

Visakhapatnam, Mysore, Agra, Mangalore Allahabad and Kanpur, that might contribute to

nearly half of retailers’ income by the early part of the next decade.If the bigger cities are

getting 15-20 malls in the space of the next five years, then the small towns are expected to see

around six to ten malls coming up in the same period.“One reason that retailers are moving to

smaller cities is that operating costs in these cities and towns are much lower than metros,

giving them an extra 3-4% margin,” says Gibson Vedamani, the chief executive officer of

Retailers Association of India, the industry lobby.With the information technology and related

service “generating enough employment for the youth, this section of the population is

becoming the primary target for retailers,” Vedamani said.

The other driver for the retail rush to these small towns is the rapid growth of the residential

segments, says Anuj Puri, chairman of Jones Lang Lasalle Meghraj, a real estate consultant

firm. “It is the rising demand for housing in these cities that is fuelling growth—with housing

comes the demand for commercial (office) and retail destinations.”

Puri’s firm recently released a report on the retail industry in the country that named seven

cities—Chandigarh, Ludhiana, Jaipur, Lucknow, Kochi, Surat and Vadodra—as high growth

destinations for retail. It identified 16 others as emerging destinations—Amritsar, Indore,

Jalandhar, Mangalore, Nashik, Bhubaneshwar, Agra, Visakhapatnam, Coimbatore, Goa,

Mysore, Jamshedpur, Thiruvananthapuram, Allahabad and Kanpur. Kishore Biyani’s

Future Group for instance, is planning to take nearly all its formats—lifestyle and budget stores

—to cities such as Indore and Nashik. The group owns brands such as Big Bazaar, Pantaloons

and Central. “There is a demand, though it is limited as of now. Only 20% of the population in

these towns would actually shop in a mall. But we have to be present there to tap the market in

the coming years,” says Biyani. Both Biyani and Puri say that over the next 5-7 years, retailers

will see up to 50% of their incomes coming from these towns.

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There are 500 malls coming up all over India, according to estimates by Parklane Properties

Pvt. Ltd, a Mumbai-based property advisory firm. Cities with as small a population as 2.5

million have 6-10 malls coming up, according to Parklane managing director Akshay Kumar.

While larger tier III cities such as Chandigarh will get 15-18 malls, smaller towns such as

Aurangabad and Nashik will get six to ten malls, while Chhattisgarh’s capital Raipur will get at

least four.

Kshitij Investment Advisory Co., the mall development fund from the Future Group, is setting

up 11 malls in tier II, or smaller, cities.

West Pioneer Properties is developing large malls in small cities, as is Prozone, a subsidiary of

men’s clothing manufacturer, Provogue.

Westside, the department store chain of Trent Ltd, set up its first franchised stores to enter

smaller markets such as Mysore and Raipur.

“Bigger markets are slightly more saturated than smaller markets,” said R. Subramanian,

managing director of Subhiksha Trading Services Ltd, which runs more than 670 convenience

stores. At Subhiksha, 40% revenues and 40% space come from cities that are not state capitals.

At Vishal Mega mart, the discount store chain of Vishal Retail Ltd, 80% of revenues come from

tier II and III cities—which is also where they are mostly based. Prozone is planning to develop

malls in cities such as Aurangabad, Surat, Rajkot, Mysore and Indore.

Mumbai’s K. Raheja Group, which owns brands such as Shoppers’ Stop, is planning to invest in

250 convenience stores, most of which will be in smaller cities, while Reliance Retail is

planning around 1,600 stores in rural areas.

International mall developer Plaza Centre’s is another developer who is looking closely at tier II

and III towns. “While there isn’t huge number of consumers in these towns, the conversion rate

is much higher than those in cities,” says Vedamani, noting that around 70-75% of visitors end

up buying from retail outlets in smaller places, whereas, in large cities, it is around 50-55%.

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This article basically supports and informs that small cities are now the major destinations for

the development, and each and every business that has to survive will have to start its journey

for the bottom of the pyramid.

Growth drivers for multiplex in tier2 and tier3 cities-

1. Favourable demographic changes.

2. Increase in disposable income with expanding Indian middle class people.

3. Organized retail boom.

4. Entertainment tax benefits for multiplex cinemas.

5. Good quality of hindi cinemas.

Way forward –

1. In next 18-24 months, 6 of the largest multiplex operators in India mentioned earlier are

likely to commercialize approximately 150-180 additional screens spread across 50-60

new multiplexes.

2. These multiplexes will have a cumulative seating capacity in excess of 60,000 – 75,000.

3. There will also be an increase in number of multiplexes operated by smaller players, who

constituted 66% of total multiplexes as of march2005.

4. There will be an increase of 50% operating multiplexes by end of 2008.

5. By end of 2008, 170+ multiplexes will house more than 1, 60,000 seats spread across

540+ screens.

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6. These multiplexes will have a significant positive impact on film production,

financing, distribution and exhibition and other markets.

Tax benefits –

1. In order to encourage investment many state governments have announced policies

offering entertainment tax benefits.

2. Tax benefits have encouraged the growth of multiplex cinemas and also single screens

conversion.

3. Tax rate depends on certain conditions specified by particular state.

Concept of value cinema –

• Bioscope mall’s value cinema proposition-Bioscope Cinemalls is a chain of value

cinemas proposed to be set up in the Tier 2 & 3 cities of India, attached to a retail /

mall complex with food and shopping as additional attractions

• The primary aim is to provide a great cinematic experience that is comparable to

the best in the industry at an unbeatable price point

• Ideally, Bioscope would be positioned somewhere between the plush Metro-Centric

multiplex and the old single screen cinema in small towns across North and West

India

Scope for bioscope

Given that there are little or no means of entertainment in ‘B’ and ‘C’ class towns, there is a

huge potential for multiplexes. The rising prominence of smaller towns can be gauged from the

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fact that movie stars are touching down at these places to promote their films. After two years,

non-metros will clearly will be clearly be the drivers of film exhibition companies.

At present as much as 65% of the total box office collections in the country come from non-

metros and the ratio is likely to change to 30: 70 metro – non metro in three to five years.with

box office collections from non-metros, expected to move up one cannot ignore the smaller

towns.

P ositioning of bioscope multiplex. – Graph

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Bioscope cinemalls is a chain of value cinemas proposed to be set up in the tier2 and tier3

cities of India, attached to a retail/mall complex with food and shopping as additional

attractions.

Now the primary aim is to provide a great cinematic experience that is comparable to the

best in industry at an unbeatable price.Bioscope will be positioned somewhere between

the plush metro-centric multiplex and the old single screen cinemas in small towns across

north and west india.

Targeted cities and locations …..

E-city bioscope is targeting the selected states on the basis of market value, growth, exemption in entertainment tax & electricity tax, easiness in property development, demographic & geographic strength, and upcoming growth in terms of reality & retail, and so many others miner things.

Premium Cinema Value Cinema

High Density Network

Low Density Network

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E-city bioscope is targeting Rajasthan, Madhya Pradesh, Gujarat, Haryana, Punjab, Maharashtra, and Chhattisgarh to open a cinema cum activity centre.Before it was selecting those cities where population should be more than 5 lakhs but now it’s targeting those cities where populatation supposed to more than 2 lakhs means Tier 2 & 3 cities in India where peoples and markets are growing up in terms of reality & retail, Education, Spending power, house hold income, Easiness in availability of Finance, Economy is high, growth in industry & service sector, And peoples are ready to adopt Multiplex & Lifestyle culture.

It’s Targeting to open 250 screens till 2011-12 in these selected States & Cities.Now it’s focusing on Rajasthan Market where it’s Already Started multiplex Operation in Jodhpur, Ajmer, Sikar, Pali, Bilwhara, Kota and Beawar and targeting in Udaipur, Bikaner, Kishangarh, Sriganganagar, Chittorgarh & others cities to open a cinema or multiplex through j.v, Own a property or On lease. Then it will be shifted to Madhya Pradesh, Gujarat and next states and markets.These are followings………..

States 3 LAKH+ 2-3 LAKHS 1-2LAKHS  

RAJASTHAN 5 4 5  

MADHYA PRADESH 4 3 10  

GUJRAT 3 4 17  

MAHARASHTRA 13 5 13  

PUNJAB 1 1 8  

HARYANA 2 4 9  

CHATTISGARH   4 3  

         

Total 28 25 65 118

Business development

Procedure and Analysis

DESKTOP STUDY ON BIKANER MARKET

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City – BikanerState – Rajasthan.Area – 270 sq. kmCentral area – 38.10 sq kmUrban Population – 7,23,982 (2008)Total population- 19.02 lakh (2001)Literacy rate – 66%74%- male, 57%- femaleSex- 53% male, 47 % female.Density – 1960/ sq kmPin code – 3340xxSTD code – 91151

BIKANER- IMPORTANT DETAILS

s.no Section Quantity Remarks

1. Hotels

a. Heritage hotels 11 hotels Saswant bhawan, bhairon villas, mann vilas, marudhar heritage etc.

b. Star hotels 1 Hotel raj villas

c. Deluxe heritage hotels 5 Lallgarh palace, bhawan niwas etc.

d. Budget hotels 9

e. Guest house 1

f. Resort, deluxe resort 2

TOTAL HOTELS- 24

2. PETROL PUMPS 7 Hp, bharat petroleum etc.

3. SHOPPING CENTRES ADDRESS

a. Khajanch market Kem road.

b. Jain market Kem road.

c. Ganpati plaza Mg road

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d. Bothra complex Alka sagar road

e. Sarbati mansion Mg road

f. prithavi market Talisarbhary ji gali.

g. Vade market Rani bazaar

h. Guru nanak market Labuji ka katla

i. Baba market Near anchar bhi hosp.

4 HOSPITALS

a. Govt. hospitals 3 P.M.B hospital, T.B hosp. , child hospital.

b. Private hospitals 5 Kothari hospital, m.n hospital etc.

NOTE:- MAHATMA GANDHI ROAD, KATLA KOTE IS MAIN MARKET FOR SHOPPING, KING EDWARD MEMORIAL ROAD, AND STATION ROAD.

S.no SECTION QUANTITY REMARKS

5. EDUCATION

a. College 14-16 Rajasthan agri. Univ., university of bikaner, bikaner engg. College, etc.

b. Schools 25 (Apprx.)

6. CINEMA HALLS 7-8 Adlabs,Suraj, shriganga, vishwa jyoti, etc.

7. MUSEUMS 3 Ganga dolden, sadul etc.

8. CLUBS 7 Sadul, railway, rotary, lions etc.

9. SWIMMING POOLS 4 Sadul club, teja garden etc.

10. AMUSEMENT PARKS 5 Public park, sky bird etc.

11. NEWSPAPERS 4-6 Rajasthan patrika, denik bhaskar, times of India, Hindustan times, etc.

12. VISITING PLACE 9-10 Lallgarh, gajner, junagarh,

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karni mata temple, ratna vihari temple etc.

13. BANKS

a. National bank 19 ICICI, SBI, SBBJ, PNB, OBC, BOB etc.

b. Grameen bank 2 Bikaner grameen bank, bikaner urban co-operative bank

14. RETAIL BRANDS 15-18 Reebok, provogue, vishal-megamart, Charlie outlaw etc.

INDUSTRIES- Bikaner, basically have bhujiya and papad, namkeen, woolens, and ceramic industries.

Some well known indst. – Bathroom fitting, snack food, carpet and shady yarn, cattle feed, cement, ceramic tiles, cotton textiles, dairy product, groundnut oil, gypsum grindings, handicrafts items, and leather footwear.

COLONIES – Vyas colony is main colony in no. of plots, rates and locality. Purchasing power is good.

Summary and conclusion:1. According to that information Bikaner is good in spending power than Pali and other cities in Rajasthan.

2. There is almost every retail brand is available in city.

3. Approximately 70% peoples are dependent on agriculture as living source.4. There almost every national bank is available like- icici, pnb, and sbi etc. and there 14-16 colleges over there.

CITY GRADE MPV MII MEI CINEMA MEANS

BIKANER B 17.20(71) 78.57(328) 106.84 56.83 23.45

JAIPUR A 98.33(12) 97.57(73) 103.26 48.37 27.36

PALI C 5.73(204) 73.84(438) 91.37 86.92 27.52

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5. Hospitality condition is good like many hotels and hospitals are there.

Conclusion-

1. as my perception, if any company open a multiplex mall over there, it should be run good because-A. There is no multiplex and shopping mall over there till now, so good opportunity to grab the whole market (penetrate) by come first philosophy.B. Good footfalls in upcoming future

City Profiling And Market Survey

Standing operating procedure (SOP) –

Property procurement -

CHITTAURGARH- CITY SNAPSHOT

Located along the north western Aravalli region, Chittaurgarh city is situated about 190

kms of south of Ajmer and 115km from Udaipur. The city is mainly renowned for

Chittaurgarh Fort. The fort is a massive structure with many gateways built by the later

Maurya rulers in 7th century A.D. Perched on a height of 180 m. high hill, it sprawls over700

acres. Due to such characteristics of the city, it has made this town, more significantand

important from tourist point of view.

The earlier development of the town remained confined within the city wall (old city

Area) which was self sufficient with it due to the available infrastructure within the city.

The city started to expand in 19th century after the development of railway line with other

development in the city like government offices, Industrial area and other institutional areas.

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Chittaurgarh District now comprises of 14 Panchayat Samitis, 13 Tehsils and 8 Sub-

Divisions. It has 8 Municipalities.

At present the city is growing on a fast pace which is indicated by the increase of

Population by nine times as compared to 19th century population. 2001 population for

The city was 96,028 and the growth rate for 1991-2001 for the city has been counted

34.18%. The major factor for the increase of the population is the development of the city’s a

major Industrial and agricultural District which marks the presence of Birla Cements,Aditya

Birla Cements, J.K. Cements, Rajasthan Atomic Power Plant, Hindustan Zinc Limited (Vedanta

Group), Marble Industries and now taking lead in mustard opium and soybean crops. National

Highway 79(Bhilwara-Nimach) and National Highway 76 passes through the city from which

major outflow of traffic happens

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KEY DEMOGRAPHIC DATA

POPULATION 2008: 1, 21,538

SEX RATIO: According to Census 2001, the sex ratio is 966 per 1000 males, for (0-6 age

group) its 927 per 1000 males and for (7+ age group) the sex ratio is 974 per 1000 males.

LITERACY RATE: The Literacy rate of the region is low vis a vis the national average at

54.4% wherein 71.8% is male literacy and 36.4% is female literacy according to census

2001.

DECADAL GROWTH RATE: The decadal growth rate for the decade of 1991-2001 is

21.5%

CITY STRUCTURE AND GROWTH DYNAMICS OF THE CITY

47

City experiences a series of destruction and construction as a result of wars which took

Place in the earlier stages of development of the city. It mainly results in the non uniform

growth of the city. The city started to took its developed stage after the establishment of railway

broad gauge line in eastern zone of the city with other economic developments in the city such

as industrial, institutional and residential developments. The new and developing corridor in

which the major residential development is coming is mainly NH 79 and NH 76 which mainly

consist of inner city area viz. Udaipur road, Nimhada road and Bhilwara road.

The total area of the Chittaurgarh district is 10,856 Sq.Km. which is 3.17% of the total state

geographical area. Within municipal limits of Chittaurgarh the area is 41.76Sq.Km (10,319

acre). Out of the total area of the city only 6345 acres consist of urban area andrest consist of

mountainous range, water bodies, hinterland and agricultural land. Afterindependence, the

population growth of the city increased to 10 times as compared to the earlier decades. The

development of the city mainly took place in two phases as the development in and around the

fort area in 1st phase and the development of the new town area in 2nd phase

ECONOMIC ACTIVITIES

Chittaurgarh has a strong base of economic activities which mainly includes agricultural sector

industries, cement factories and marble factories. The main industries which marks its presence

in Chittaurgarh city area cement, chemical based units, cotton (in bales) textiles, electrical

machinery and parts, general engineering workshop, ghee, oil and dal mills, lead, leather

footwear, machine tools, marble slabs and tiles, paper and paper products, polished marble tiles,

rubber and plastic units, solvent extraction plants, sugar, wood and wood products, zinc.

As per 1961 census about 36.95% of the population consisted of workers whereas

According to 1971 census it was 28.49%. In 1991 30.76% of the population consisted of

Workers and according to census 2001 the percentage has increased to 31%. Due to the

Criteria of being the district headquarter; it consists of 24.84% of workers involved in

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Different economic activities in the city as compared to the entire district.

The worker population mainly consist of primary sector and secondary sector industries.

Out of total developed urban areas in the city, 2.86% of the area is designated to

Provide base for the primary sector products. About 82.4% workers were employed in

Primary sector i.e. agriculture, mining and quarrying etc. whereas 6.2% of workers are

Involved in secondary sector and rest 11.3% are involved in tertiary sector. The

Percentage in the agricultural sector, in which the production in terms of tonnes has

Been illustrated below:

KEY ECONOMIC DRIVERS

Industrial Sector:

Chittaurgarh city is known for the major industrial base of the district consisting mainly of

cement factories, marble and other agricultural goods. In 1924, first industrial unit of the city

named Cotton Zining Factory started in the city. In 1966, branch of Birla Groups started their

project in the name of Birla cement works in Chittaurgarh which has become the major

industrial unit in present context in terms of employment where at present 1962 workers are

present and providing the economic base of the city. This unit is spread across an area of 80

acres and situated in Bhilwara road at approximately 4kms from the city. The major growth of

Industrial area is mainly along the Bhilwara road where RIICO has developed an area of 105

acre and 155 acre land where approximately 400 industrial units were established.

The other major Industrial units are located in Bundi road, Nimhada road and Pratap

Garh area which have been developed by RIICO. In Bundi road near Manpura village

40 acre of land has been developed by RIICO in which 71 industrial units has been

Established. Majority of industrial units under RIICO consist of Stone and Marble cutting

industries.

Industrial Units in Chittaurgarh

49

• No. of Large and Medium Scale Units: 10

• No. of Small Scale Units: 3,882

• No of Industrial Areas: 7

• Major Industrial areas:

Ajolian-ka-Khera

Chittaurgarh(Bhilwara road)

Kapasa

Manpura

Nimbahera

Pratap Garh

In last two decades, there is a massive growth in the industrial sector in the city. In

1971the industrial employment was 1230 which has increased to 5398 in 1991. There are in

total 295 household industries, 140 small scale industries and 1 large scale industry in situated

in the city. In recent times, along with stone and marble cutting industry, diamond cutting

industries are also been listed in RIICO industrial sector.

MAJOR PLAYERS IN INDUSTRIAL SECTOR :

Birla Corporation Limited : Birla Cement Works & Chanderia Cement Works are units of

Birla Corporation Limited which is a multi-product, multi-interest INR 1, 100 Crore plus

conglomerate. The plants have access to the latest technology and infrastructure and are rated

amongst the most advanced in the country. The plants have a manufacturing capacity of 2.2

Million Tonnes per Annum. This plant is situated in Bhilwara road industrial area which is the

major industrial area of the city.

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INANI MARBLES (INAMARIN): It is engaged in the production of marble blocks, marble

Slabs, granite slabs and sandstone slabs. The plant is located at Chittaurgarh in

Rajasthan. INANI Marbles & Industries registered a steep drop of 45.53% in net profits of

Rs0.67 million for the quarter ended March, 2007 from a profit of Rs 1.23 million for thequarter

ended March, 2006. The earnings per share (EPS) of the company stood at Rs0.20 in the quarter

ended March, 2007.

HINDUSTAN ZINC LIMITED: It has established their super zinc smelter in the industrial

areanear Putholi. According to this project, production of zinc and brass has been startedfrom

1991 and 1997 respectively for which the major source of water is from Ghonsunda dam. This

project is spread in an area of 825 acre area in Bhilwara road.

EXISTING INFRASTRUCTURE IN THE CITY

• PHYSICAL INFRASTRUCTURE

Roads and transportation:

Existing regional traffic at present flows on the inlaying city roads. NH 79 (Ajmer to Indore)

and NH 76 (Udaipur to Kota) pass through the town. SH 9 cross the city which runs

fromUdaipur via Dobak, Mavali, Kapasan, Chittaurgarh, Ladpura to Bundi. An outer ring road

is under planning stage which will direct the traffic to move in the peripheral roads and prevent

the highway traffic to move through the city to reduce congestion and other related problems in

the city.

Bus stand and Truck Terminal: Roadways bus stand is situated near Kila road over an

Area of 5 acres whereas proposal of private bus stand in Gandhi Nagar project is under

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Construction. At present truck terminal is not present in the city for which city roads faces

congestion due to on road parking of trucks.

Railway and Air Terminals: Chittaurgarh is connected with Delhi, Jaipur, Ajmer and

Udaipur by Meter gauge line and with Kota and Neemach through meter gauge line.

Prime railway yard is situated in Chanderia area where railway siding facility is provided for

Birla Cement works. With Hindustan zinc and Birla cement industries; broad gauge line has

provided facilities for the marble industries. There is a private facility of helipad in Birla

Cement factory area. At present there is no Airport in the city and the nearest airport to the city

is situated in Udaipur

SOCIAL INFRASTRUCTURE AND COMMUNITY RELATED SERVICES

As per Chittaurgarh City Development Plan 2010, 395 acres has been earmarked for

Community facilities. A systematic distribution of all such facilities has, therefore, been

Made keeping in view the residential densities, local characteristics of the area and

Possibility of their future expansion.

Education:

First educational institute of Maharana Vernacular School was established in the city in

1872-73. after that series of institution has been established in the city with District Primary

school in 1893 which was upgraded to the level of higher secondary school in 1958.

There are total of 74 primary schools, 41 middle schools and 19 medium and senior

Secondary schools are presently located in the city. The only Sainik School in Rajasthan is

Situated in Chittaurgarh city, which is in Kapasan road covering an area of 135 acres.

Chittaurgarh has University which is spread in an area of 24.5 acres in Udaipur road and

Polytechnic College which is situated in Mangalwad road.

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Health Facilities:

There is one General Hospital of Chittaurgarh having 167 beds with an availability of 2.2 beds

per 1000 persons located near Collecttorate in an area of 6 acres. There is only one 10 bedded

Ayurvedic hospital and one homeopathic dispensary is there in the city. In private sector there

are 9 private clinics are there which are located in different areas of the city. New building of

the general hospital is located in 13 acres of land area in

Mangalwad road.

INFRASTRUCTURE INITIATIVES IN CHITTAURGARH

Chittaurgarh city is in its developing phase with initiative taken by various local and state

government bodies. The initiative mainly involves proposals in different sector considered in

the development of the city both economically and in terms of infrastructure upgradation. The

different sectors involved are illustrated as followed:

Commercial Projects: A commercial centre is proposed (source: CDP, Chittaurgarh 2010)

Near collectorate circle opposite to the existing Roadways Bus Stand which will be the

Major hub of commercial activities in the city. This commercial centre will be of 12 acre

Area and will consist of shops, service centres, post office and other related commercial

53

Activities. The project cost of such development is estimated INR 2.5 crores.

Road and Transportation:

Establishment of Private bus stands in the northern side of the city in Kapasan

Chowk with a project cost of INR 2 crores.

Transport Nagar: Establishment of transport nagar in Bhilwara road near Birla

Cement factory to ease the traffic congestion generated by trucks serving the

Different industrial units of the city. The area of the project will be 42 acres which

Will include godown, private transport office, Automobile market, Truck parking

Area, service station, fire station etc. The project cost of Transport nagar is

Estimated to be INR 2 crores.

Four Lane proposals for the major road of the city: Major roads of the city viz.

Bhilwara road, Udaipur road, Neemach road and road leading to old city area

Are proposed to be four lanes with road width of 100-200 ft.

Broadening and beautification of major rotaries in the city which included the

Junction of Panna dai Bus stand Chowk, College Chowk, collectorate Chowk,

Station road Chowk.

Flyover and over bridge: Existing railway track crosses the city near Kumbha

nagar road which results in major traffic congestion in the city. Development of

Flyover in that stretch has been proposed which will include a project cost of INR

2 crores.

Dhithola Chowk: Development of Asia’s biggest rotary at about 6 km from the city

Towards Udaipur road. This project is under construction and will be completed in

2010 which will have 32 road links connecting different cities of the state.

54

Community Facilities:

Development of Indira Gandhi Stadium has been proposed in the city which will

Cover an area of 17 acres with a project cost of INR 50 lacs.

Establishment of Tourist Complex has been proposed in the city near Bhaikhera

Village with an area of 60 acres land. This complex will cater the demand of

Increasing tourist level in the city. This complex will consist of hotel, cottages, Mela

Ground, restaurant, tourist information centre, bank, swimming pool and other

Related facilities. This project will involve a project cost of INR 2.5 crores.

Other Development Initiatives:

Development and beautification of Gambhiri River, as to make it useful by

Arranging boating and development by bridges and pathways to boost the

Tourism sector

Fateh Prakash Fort to be developed as Fort Palace Heritage Hotel

Lightening in the fortified walls of the Fort to increase the scenic beauty of the fort

REAL ESTATE MARKET ASSESSEMENT

It has been observed that real estate development has been quite sluggish in the recent

Past but there has been a recent spurt due to the involvement of national players in

Industrial sector, with growth of support facilities to complement the industrial sector.

Developers of regional and national repute are in the process of land acquisition in

Various parts of city. Development in terms of retail (high street) and commercial activity are

already established in the city which is primarily concentrated in the old city (Rana Sanga

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Market, New Cloth Market and Meera market) and upcoming markets in new cityarea

mainly in Station road and Udaipur road. However the development in terms of residential

township and other projects is yet to take off as a part of the developmental activities.

The real estate market of Chittaurgarh is in a developing stage with few retailers of

National repute having presence in the city. The city is observing rapid economic

Development, hence is likely to become an attractive and upcoming investment

Destination in view of its established industrial base and growing tourism base. Since the

Basic economic activity of the city comprises of the Industrial sector, the majority of

Workforce belongs to industrial worker.

In this chapter, the existing and proposed real estate developments in Chittaurgarh have

Been assessed to ascertain the level and quality of supply, capital and rental rates of

These respective developments. An understanding of this will assist in structuring the

Zoning for potential areas and zones for investment forming the basis for future trends of

development.

3.1 RESIDENTIAL REAL ESTATE TRENDS IN CHITTAURGARH

Residential real estate market of Chittaurgarh has been largely dependent on the

Industrial sector (primary and secondary) and tourism activities of city. The city largely

Consist of population involved in different activities such as industrial workers, service class

(institutional and govt. offices), local retailers, and other ancillary activities. Most of

Population of the city belongs to working class (MIG and lower MIG group), which is

Mainly located in the old city area and in New town area. Business class or HIG category

Is mainly located at the north western and northern side of the city comprising of areas

Like Panna Dai Colony, Mira Colony, Sinchai Nagar, Shastri Nagar, among others.

56

Development along the north western corridor (along Bhilwara road) and south western

part(along Udaipur and Neemach road) of the city is in nascent stage where most of the

development is coming in terms of plotted residential and retail (high street)activities. The north

western and south western parts of the city are mainly becoming the preferred locations for the

residents both for residence and investment purposes. The major catalyst for attraction towards

this corridor is the housing schemes of Rajasthan housing board and provision of community

facilities. City has developed in north-south direction over a period of time due to the presence

of natural growth barrier which is Beach River on the western side and fort area on the eastern

side of the city. Most of the residential developments are mainly promoted by Housing Board,

Chittaurgarh which are primarily located in the south and north western part of the city.

The basic structure of the city in terms of its residential zoning can be mainly divided into

three zones. The three distinct zones of residential development are closely related to the

historical and geographical growth of the city. The three zones are mainly divided in terms of

its development phases and are illustrated below:

i) Eastern Zone (Old city and surroundings)

ii) North Western Zone

iii) South Western Zone

i) Eastern Zone (Old city and surroundings):

Eastern zone of the city mainly consists of the fort area and its surroundings. It includes

theareas of Chittaurgarh fort and area surrounded by hilly region. It is a medium

Density area (150-350 persons per acre) with congested roads and over stressed

Infrastructure. The capital price in the Delhi Gate Colony (Old city) ranges between INR

10,000 to INR 12,000 per sq.yd depending upon the location and access road. Burden

On physical infrastructure led to its upgradation since it lies in close proximity of

57

Chittaurgarh Fort. This zone primarily consists of colonies like Gandhi Nagar and Kailash

Colony, promoted and developed by Rajasthan Housing Board. Capital prices ranges from INR

8000- 10000 per sq.yd with average absorption rate of 80%.

ii) North Western Zone:

Shastri Nagar, Sinchai Nagar, Kumbha Nagar, Mahesh Nagar, Meera Nagar, Panna Dai

Colony and Municipal colony forms part of this zone. The developments are mainly located

along the growth corridors of Bhilwara road and Gandhi Marg (connecting new city and

Old city area). These areas are relatively newly developed with availability of basic

infrastructure facility. Primarily these areas are inhabited by populace engaged in industrial

activity. These areas consist of population belonging to MIG and HIG category. The capital

prices for plots are observed in the range of INR 7,000 to INR 13,000 per sq.yd, depending

upon the location. Panna Dai colony, Sinchai Nagar and Shastri Nagar areas are the posh

residential colony of the city located in the north western zone with plot sizes ranging from 100-

300 sq.yd with capital prices of INR 10,000-14,000 per sq.yd.

iii) South Western Zone:

South western zone mainly accommodates residential areas of Pratap Nagar, Bapu Nagar,

Senthi Colony, Madhuvan Colony, Vardhman Nagar, Panchvati Colony and Sewa Nagar

(Housing Board Colony) falling on the major growth corridors of Neemach Road (NH 9) and

Udaipur Road (NH 76) consisting of medium income and LIG plotted housing. Pratap

Nagar, commands a capital prices in range of INR 10,000-15,000 per sq.yd; in Maharana

Pratap Colony it ranges from INR 4, 500 per sq.yd to INR 6,000 per sq.yd; whereas in Bapu

Nagar it ranges from INR 3,000 per sq.yd to INR 4,000 per

sq.yd. The major development corridor is Bhilwara road, Neemach road and Udaipur road

in which maximum development is taking place.

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At the same time there is no active initiative from private developers in this segment and

absence of local and national repute builders in the city.An initiative by a private developer has

been taken place in Bhilwara Road. This development is named as Zinc Nagar which is

developed by Hindustan Zinc Company for their engineer’s andIndustrial workers. This is

manly plotted development developed by the developed with all needful facilities such as

community club, swimming pool, gymnasium and other related facilities. This development

mainly consists of plotted housing covering an area of 40-45 acres.

PERCEPTION ANALYSIS:

59

Private developers and investors are yet to gear up in the market as the

Chittaurgarh real estate market is still unexplored.

The concentration of HIG category in the city is moderate with maximum

Population of working class which consists of LIG and MIG category.

The target population for the proposed development will mainly from New City

Area due to concentration of affluent population

HIGH STREET RETAIL MARKETS IN CHITTAURGARH

Rana Sanga Market, Nehru Bazaar and New Cloth Market is the first well known high

Street retail markets in Chittaurgarh, which date back to nearly 60 to 80 years. It mainly

accommodates retail spaces of local retailers and few national repute retailers. Growing

economic activity in the city due to its large industrial base offers a good potential to attract

national repute retail brands. The other high street markets in the city are Meera market and

Station road market.

1) RANA SANGA MARKET

It is a traditional retail market comprising of majority of shops with local retailers who are

the inhabitants of old city area in Chittaurgarh. This market has been traditionally associated

with small shops with local retailers dealing with jewellery, Cloths, Food and groceries. The

most popular shop sizes are 10*12 Sq. ft, 10*15 Sq. ft. The capital price of RanaSanga

Market mainly ranges from INR 10,000- 12,000 per sq.ft with rental value of INR 70-80 per

sq.ft/month.

2) SADAR BAZAAR

It is a traditional retail market comprising of majorityof shops with local retailers who are the

inhabitants of old city area in Chittaurgarh. This market has been traditionally associated with

jewellery, Cloths,Food and groceries and stainless steel. The most

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Popular shop sizes are 7*10 Sq. ft, 7*12 Sq. ft, 6*15 Sq. ft. The shops are mainly owned and

are less preferred for rentals because of it imagebility as anold traditional market. The capital

price in this market ranges from INR 5,000-6,000 per sq.ft.

3) NEW CLOTH MARKET

This market mainly consists of wholesale trades mainly dealing in clothes and apparels. It has

a locational advantage of being on the main old well renowned market of the city which is

accessible from major roads of the city connecting to other cities via Bundi road and Neemach

road. There are many small shops in New Cloth market which is one of the prime markets of

the city consisting of wholesale trade.

This market consists majorly of local retailers.

The capital price of New Cloth market mainly ranges from INR 10,000-15,000 per sq.ft with

rental value of INR 80-90 per sq.ft/month

4) NEHRU BAZAAR

Nehru bazaar is an upcoming market in terms of the retail market where most of the brands

such as Raymonds, Airtel, Akai and other brands mark their presence in the market. It mainly

composed of shops belonging to local retailers as well as national repute retailers with an

average shop size of 12*25 sq.ft, 10* 15 Sq.ft and 10*12 Sq.ft. The capital price of the market

mainly ranges from INR 10,000-12,000 per sq.ft with a rental price of INR 70-80 per

sq.ft/month

5) MEERA MARKET

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Meera Market is located in the main junction which connects the new city to the old city

area.The area where Meera market is located is known as Collecttorate Circle and well off

known as ‘heart of the city’. This is the most upcoming market in the city with major retail

brands of Cantabil, Onida and other local retailers. Meera Market is the preferred location for

the shoppers because of it accessibility and better locational

Criteria from all other part of the city.

In the major markets of the city, mainly Pagdi system has been predominantly observed

In which the shop is taken for 7-8 years agreement for a capital price ranging from 8-10 lacs per

shop. The capital price of New Cloth market mainly ranges from INR 10,000- 14,000 per sq.ft

with rental value of INR 80-90 per sq.ft/month

At present there is no organised retail mall in the city.Only one existing supermarket named

Rama Supermarket is operational in the city covering an area of 10,000 sq.ft area and situated

in Udaipur road in close vicinity of Pratap Garh area. This supermarket comprises of apparel

and groceries on G+2 structured building. The average footfall in weekdays in 60-70 and in

weekends it is 100-150

Persons.

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STATION ROAD MARKET

RAMA SUPERMARKET

PERCEPTION ANALYSIS:

Concentration of International/National brands or retailers in the city is minimal with

Major concentration of Local retailers in the retail market.

Absence of organized retail space in the city with mainly high street markets in the

City in different areas.

Willingness of prominent retailers to shifting to an organised mall is very high

(Approx. 74%) which shows a positive response towards the development of such

Retail activities. Presence of branded retail standalone buildings in high street retail

markets which

Have shown a positive response towards shifting in an organized retail mall.

COMMERCIAL REAL ESTATE TRENDS IN CHITTAURGARH

At present, there is no high-end commercial development in Chittaurgarh. Most of the

Commercial office spaces are in the form of B and C grade commercial-cum-retail

Complexes. These comprise of small retail spaces on the ground floor and office space

On the upper floors. The important commercial destinations of Meerut City are Gandhi

Marg, Bhilwara road and Old City market. Chittaurgarh, being an important trade centre,

has few commercial complexes where major brands are of local retailers and growingindustrial

market of the city encourages the development of further projects on Commercial lines.

Gandhi Marg, Old City Market and Bhilwara Road have few commercial complexes like

63

Keshav Sawa complex (new cloth market), Bamasa Complex (built along with Hotel

Vishal, Gandhi Marg), Inani Complex (Bhilwara road). These accommodate 20-40

shops,with the standard size for a unit (shop or office) in being 12’ x 30’. The outright rates

varyfrom INR 4500 per sq.ft and 3500-4000 per sq.ft on the first and second floors.

Apart from the few Commercial complexes in Gandhi Marg, Old city market and

Commercial area in Chittaurgarh has not been yet explored. Absence of any major

Commercial office spaces as well as players ahs been observed in the city with only one

Office space of Birla Sun life in INANI Complex which reflects future possibilities of such

development in the city with view of increasing economic activities.

On Udaipur road, Aradhana commercial complex is under construction with a mixed

Model of hotel and commercial spaces. Aradhana complex covers an area of 48,000

sq.ft for which the capital prices ranges from INR 2300 per sq.ft in basement and INR 3000 per

sq.ft on first floor.

PERCEPTION ANALYSIS:

City has become an important trading destination of the city mainly with the

Concentration of wholesale markets such as Grain mandi and other institutional and

Industrial activities and thus encourages the need of various support services like

Banking, insurance, telecom, couriers and transportation etc.

On basis of the city perception analysis, lack of services in terms of financial

Institutions and bank offices are there in the city.

With growing industrial base of the city, city has a positive potential towards

Commercial complex providing space for offices and private banks.

HOSPITALITY AND TOURISM SECTOR

64

TOURISM SECTOR OVERVIEW

Chittaurgarh is the prime tourist destination in Rajasthan and it is famous for its

Chittaurgarh fort. The tourism sector experiences inflow of around 90,000-1 lakhs tourist

annually but its not considered as the major economic driver of the city because of its locational

criteria to other major cities of the state. Tourist usually stays in Chittaurgarh for a day to visit

the fort and usually travels from Udaipur which is only 105 kms from the city.

There is limited number of hotels in the city which does not have good occupancy level

Due to the short visit of tourist to the city.

However tourist visiting the city is increasing from last few decades. The total inflow of

Tourist both domestic and international was 1, 13,538 in 1983 which has increased to 3, 38,307

in 1998.

Apart from cinema halls and recreationalfacility, RTDC is proposing Tourist Complex

Has in the city near Bhaikhera village withan area of 60 acres land. This complex will

Cater the demand of increasing tourist level in the city. This complex will consist of hotel,

cottages, Mela ground, restaurant, tourist information centre, bank, swimming pool and other

related facilities. This project will involve a project cost of INR 2.5 crores.

HOSPITALITY SECTOR OVERVIEW

Chittaurgarh being a prime tourist destination provides good hospitality facility ranging

From budget hotels to star category hotels. Hospitality groups like Inani Group and

Bijaipur Castle hotels Group which is one of the most established groups in the city have their

prime hotel in the city named Padmini Hotel and Pratap Palace respectively.

Chittaurgarh City lacks 4 & 5 star category hotels because demand for such range

Category hotel in the city is minimal. The only tourist place in the city is Chittaurgarh Fort in

which tourist visits in daytime and don’t prefer a night stay. The room rent ranges mainly from

65

INR 300(budget Hotels) to INR 2800 (Heritage hotels) per day. The city beinga tourist city

has large number of footfalls and hence reports peak or lean season.

Average occupancy throughout the year is 40-60 % which mainly results by business

Meetings and conference related to the industrial activities in the city. The hotels in the

City are mainly situated in the New city area due to the facility of better infrastructure

And other amenities.

However, apart from the tourist destination in the city, there are not many options

66

67

68

HOSPITALITY SECTOR OVERVIEW

Chittaurgarh being a prime tourist destination provides good hospitality facility ranging

From budget hotels to star category hotels. Hospitality groups like Inani Group and

Bijaipur Castle hotels Group which is one of the most established groups in the city have their

prime hotel in the city named Padmini Hotel and Pratap Palace respectively.

Chittaurgarh City lacks 4 & 5 star category hotels because demand for such range

Category hotel in the city is minimal. The only tourist place in the city is Chittaurgarh Fort in

which tourist visits in daytime and don’t prefer a night stay. The room rent rangesmainly from

INR 300(budget Hotels) to INR 2800 (Heritage hotels) per day. The city being a tourist city

has large number of footfalls and hence reports peak or lean season.

Average occupancy throughout the year is 40-60 % which mainly results by business

69

Meetings and conference related to the industrial activities in the city. The hotels in the

City are mainly situated in the New city area due to the facility of better infrastructure

And other amenities.

However, apart from the tourist destination in the city, there are not many options

Available for recreational purposes in the city

LEISURE AND ENTERTAINMENT IN THE CITY

At present, Chittaurgarh has only two operational cinema halls which are located in Old city

area near Chittaurgarh Fort. Retail formats of malls with multiplexes are not yet observed in the

city.

The cinema halls lack in terms of good amenities and infrastructure. The average ticket

Rates for these Cinema Halls ranges from INR. 10-25 per show. The average occupancy

Rate for these cinema halls ranges from 20%- 40% on weekdays and 25-50% on weekends.

The existing cinema halls cater to a clientele of low to medium socio-economic profile.

Due to lack of amenities and infrastructure in the existing halls, people don’t prefer these

cinema halls. Other than that, There recreational and leisure facility in the city are

Minimal with presence of local parks and Gardens. Other recreational facility mainly

Involves Meera Park, Mrigvan Park and other small sector level park.

Table 3.6: Details of Cinema Halls in the city

Chandralok- Rana Sanga Market, Chittaurgarh

Number of screens - 1

Average occupancy - 40%

Seating capacity - 420

Ticket price - 7, 20, 23

70

Biggest Cinema in Town with4711 Sq. yard land, cinema is under lease withNagar palika.

Apsara new Cloth

Market,

Chittaurgarh

Number of screens- 1

Average occupancy – 30%

Seating capacity - 330

Ticket price – 11, 20, 25

Located in Old city area with

Poor, infrastructure and amenities.

PERCEPTION ANALYSIS:

According to perception analysis study of the city, it is found that most of the tourists

Stay in the city for one day during their visit to the Fort. Demand of Multiplex/Mall has

Got a positive response from the tourist as well as local respondents in terms of

Providing a supplementary recreational facility in the city.

LAND MARKETS IN THE CITY

The real estate sector of Chittaurgarh is in its nascent stage with major development

Consisting of industrial, residential colonies and other developments. The area which has

witnessed maximum growth is northern, north western and southern western zone.

Transactions of the large agricultural land parcels and conversion of industrial plots to

Residential land use and commercial land use characterized the market in anticipation of the

uprising realty sector due to the industrial growth and infrastructure developments planned for

the city. The realty sector is expected to gain back some momentum by the end of year 2010

with the establishment of more industries and infrastructure projects. The current land prices

along the major growth corridors viz Nimhada Road, Bhilwara road, Udaipur road and by

pass road range from INR 5 lakhs per Bigha to INR 30 lakhs per Bigha depending upon the

71

location and proximity to the city and the size of the property. The demand for land is

increasing in Udaipur Road and Bhilwara Road because of potential of development of

commercial and other related development in the corridor because of strong Industrial base.

FUTURE POTENTIAL OF REAL ESTATE IN THE CITY

PARAMETERS EXISTING TREND UPCOMING POTENTIAL

RESIDENTIAL SECTOR

The residential real estate market is taking its pace by existing developments initiated by

Rajasthan Housing Board and Private colonies, with new schemes and colonies which are

proposed by them. Development by private sector has still not touched the city.

Upcoming well planned colonies have been designed by RajasthanHousing Board While no

private developer of national/regional repute is operating in the city, few owners of large

agricultural parcels are rolling out small scale residential layouts for MIG and LIG

segment.Overall residential market of Chittaurgarh is mainly driven by end-users with minimal

presence of investors.

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RETAIL SECTOR

Retail sector in the city predominantly comprises of high street retail location. These are the

small clustered high street markets in the old city and central core of the new city in close

proximity to city railway station. Organized retail development is yet to start in the city. The

main base of retail is mainly by local retailers of Chittaurgarh which are largely concentrated

in New City area and Old City area. National level retailers are coming up with their brands

mainly in New city area mainly in Meera market and Station road area. Few departmental stores

have mushroomed in the form of organized retail in the city. Upcoming potential of organized

retail sector can be marked with

The huge response observed by departmental stores and retailers hosting branded products and

resulting high footfall and conversion level of the national level retail brands in the city.

COMMERCIAL SECTOR

The commercial sector is still dormant in the city with few private bank or corporate house.

Chittaurgarh does not host any organized commercial complex till date. Few operators who

have presence in the city like HDFC Bank and Birla Sun life among others are occupying shops

small commercial complexes coming up in the city Industrial sector being the major economic

base of the city requires the presence of private sector banks with facilities of ATM; Online

banking and Money exchange

Counters may generate the high potential demand for commercial spaces in the city

HOSPITALITY SECTOR

Hospitality groups like Inani Group and Bijaipur Castle hotels Group which is the major group

established in the city has their prime hotel in the city but demand for such range category hotel

in the city is minimal. Average occupancy throughout the year is 40-60 % which mainly results

by business meetings and conference related to the industrial activities in the city. Future

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potentials for hospitality development is as low because of less stay of the tourist in the city and

in existing hospitality sector, the major occupancy level is observed by business and service

category

LEISURE AND ENTERTAINMENT

In context of Leisure and Entertainment sector, only local cinema halls with inadequate

infrastructure. Central public park/Fair Grounds provides alternate recreational facilities to the

city. Due to shortage of any high level leisure and entertainment in the city, it has a potential for

the growth of such development such as multiplex, amusement parks and other facilities.

SITE LOCATION AND SWOT ANALYSIS

The site has been studied in the context of its neighbourhood, type of developments and

Growth trends in the area, its connectivity and its potential to become a successful

Destination. Site location and analysis in terms of available linkages and connectivity to

Other areas in the city, available infrastructure, neighbourhood developments and

Characteristics have also been considered. The south and north western quadrant of

Chittaurgarh has been studied in detail for the purpose of establishing the catchment

Population and its characteristics.

This section presents the site description, location and context, site connectivity, the

Catchment profile, and finally Strengths, Weaknesses, Opportunities and Threats of the

Subject site.

PROJECT DESCRIPTION

The subject site is located at on 75 feet (proposed) wide Palika Road which branches out

From B.T Road leading to Collectorate circle on west and Old City in east. It is

approximately 1 km from the main city (railway station) and lies in north western part of the

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city. The major landmark of the subject site is Roadways Bus Stand which abuts the site in

north direction.

The site admeasures approximately 7200 Sq.yard and has an excellent frontage of

Approx. 105 feet on the main Palika Road leading to B.T road. Depth of the subject is very

large which admeasures 325 feet. Site is a part of R Zone designated by Town Planning

section (Municipal Corporation).

The site falls in medium density residential use (100-150 ppl/acre) area. In the immediate

vicinity of the site there are residential areas of Municipal Colony (Kidwai Nagar), Panna

Dai colony and Meera Nagar which consist of population belonging to MIG group category.

The site falls off the Palika roads which has an access from B.T road leading to Old City area.

The visibility of the subject site is low due to the presence of Bus Stand adjacent to it. The

ground water condition on the site is also quite good but at present no infrastructure facility has

been provided to the site, where the infrastructure is to be provided and under Municipal

Corporation in future.

SITE NEIGHBORHOOD ANALYSES

The surrounding of the site is mostly of residential use which consists of colonies of

Municipal Colony, Meera Nagar Colony and Panna Dai Colony. At macro level, site is

Surrounded by Chittaurgarh fort which is the major tourist destination of the city.

NORTH OF SITE

Northern area abuts the Roadways Bus Stand and B.T road which leads to the Fort area

On east and collectorate circle on the west. The major residential development in north of the

site is Meera colony and Panna Dai colony which is one of the posh residential

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Areas of Chittaurgarh city. The area accommodates MIG and HIG colonies where major source

of income is service sector and business. Quality of construction is good and basic

infrastructure in the area is under the jurisdiction of Municipal Corporation.

Electricity and water connections are available through Govt. authorities.

WEST OF SITE

75 feet (proposed) Palika road falls on the west of the subject site which branches out

From B.T road and leads to Municipal Colony. Other developments on the west are budget

hotels such as Natraj hotel and President Hotel which are located on the palika road. On the

further west of the subject site Bhilwara road is runs from north to south which is the major

growth corridor of the city.

SOUTH OF SITE

Southern side of the subject site comprises of small scale Plotted development of Municipal

Colony. The south eastern side of the subject site comprises of residential use. At Macro level

of the sit NH 76 falls on the southern side of the subject site which is leading towards Bundi via

Old city area.

EAST OF SITE

Eastern side of the subject site consists of agricultural lands as a green belt for the Gambhiri

River. Gambhiri River divides the Old city area and New city area. Further on east of the site,

Old City is situated where most well known high street markets of the

City is located viz. Rana Sanga Market, Nehru Bazaar, New Cloth Market and Sadar Bazaar.

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CONNECTIVITY AND LINKAGES

Subject site is strategically located on Palika Road in the locality of Kidwai Nagar

Residential area. Site falls within the municipal limits of Chittaurgarh. It is well linked with

major road of NH 79 through BT road. NH 79 is the major growth corridor of the city where

most of the upcoming retail and residential projects are coming up. At present the site is

approachable through Palika road which branches out from B T Road which is proposed to be

widened to 100 feet road. Thus the site will have well

Connectivity within the city.

LAND MARK DISTANCE

RAILWAY STATION 1 km

ROADWAYS BUS STAND 0 km

CHITTAURGARH FORT 500 m

KALA GHODA CHOWK 1

INFRASTRUCTURE ASSESSMENT

The subject site enjoys good road access from 75 feet (proposed) Palika road;

Connecting the subject site from the main city.

Subject site and the adjoining areas have electricity and water connection available

From the municipal authorities. Since the subject site lies in designated R-Zone according

Master Plan, the local authorities will ensure requisite infrastructure is provided once the

development is permitted in this area.

CATCHMENT DELINEATION

The catchment for the subject site is mainly decided on the travel time because of its

Small geographical area for which only Primary and Secondary catchment has been

Taken into consideration after conducting a reconnaissance survey of the

Neighborhood. The primary catchment covers up to 0 – 5 km radius from the site or

About 5-15 min driving time which mainly covers the whole of the Chittaurgarh town,

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Secondary catchment radius has been considered 6 – 15 km or 15-30 min driving time. In case

of this project the whole city falls within the range of primary level catchment.

Secondary catchment for the project will include adjoining towns and villages.

Characteristics of Primary and Secondary catchments

Primary Catchment (0-5 Km from the Site)

Immediate Catchment:

Kidwai Nagar, Panna Dai

Colony, Meera Colony

• Famous residential area situated in the close vicinity

• Mainly consist of medium and high income group.

• Area considered as ‘heart of city’ consisting of the major

Activity centre of the centre including Collector’s office and

Meera market

Chittaurgarh Fort

• Major tourist destination of the city

• Site falls on the way leading to the fort and can additionally

Provide an image lift up for the proposed project on the

Subject site

• Close proximity to the Old City high street retail area (Rana

Sanga Market, Nehru Bazaar, and New Cloth Market) which is

Considered to be the major activity centre of the city.

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New City area

• Location of major residential areas in (1 km) radius such as Kidwai Nagar, Panna Dai Colony,

Meera Colony, Shastri Nagar, Pratap Nagar which is the major posh areas of the city with

mainly MIG and HIG category housing

• Major retail destination of the new city Meera market is located in the close vicinity which has

image lift up for any proposed development adjacent to it.

Development Projects

• Development projects of Bypass road, integrated tourist complex, development of

commercial complex in Gandhi Marg and other development initiative in new city area will

boost the economic activities of the city

Secondary Catchment (6-15 Km from the Site)

Near by Villages and Towns

• Secondary catchment mainly consists of small towns and village in the surrounding in the

radius of 6-15 km range.

• The towns in the surrounding area are Pratap garh, RK colony, Ghonsunda, Ghataoli,

Bijaipur, Putholi

• These surrounding towns and villages mainly consist of agriculture base population

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SWOT ANALYSIS

The characteristics of the subject sites, their connectivity and surrounding have been

Analyzed to conduct the SWOT analysis.

Strengths

• Large site area provides ample typological and development options.

• Subject site enjoys excellent inter-city and intra-city connectivity.

• Subject site is well connected to all the major landmarks through B.T Road

• Good frontage (approx. 105 feet) of subject site on internal Palika road.

• Subject site is a part of well established Kidwai Nagar and is in close vicinity of

Collectorate Circle and Meera Market.

Weaknesses

• Immediate catchment population of subject site mainly belongs to MIG category

And the project development would have take into account the surrounding

Area development. However, areas in the close proximity i.e. New City consist of

Good residential colonies which can support the proposed development.

• Subject Site is located off the main road connecting current bus terminus to

Collectorate circle and thus has poor visibility and accessibility from main road.

• Visibility being a prime parameter for success of retail project renders the subject

Site sub-optimal for such development.

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Opportunities

• The existing Industrial activities of the city lead to a high demand for retail,

Commercial and other related activities in the area

• Apart from the tourist destination there are no other recreational options

Available in the city, hence the subject site development will have an early

Mover advantage.

Threats

• Availability of better locations to position the proposed development in the

Subject catchment

• The catchment has limited sustaining capacity to support such establishments.

Procedure of setting up a multiplex

The procedure of setting up a multiplex is divided into 3 phases after the multiplex operator has

decided the location of the multiplex and entered into the agreement with the mall developer.

Development of property

In this stage the mall developer develops the property according to the specifications agreed

upon by the multiplex operator and the mall developer. The mall developer has to get certain

approvals from various authorities. After the mall developer completes development and gets

approvals, the property is handed over to the multiplex operator.

Fit outs: After the property has been handed over to the multiplex operator, the interiors are

done up by him. This includes civil and architectural work, designing, seating, carpeting,

putting up the screens etc. This stage normally takes between 2-6 months depending on the size

and scale of the project.

Approvals: After fit outs are completed, the multiplex operator has to get various approvals

before he can commence operations. On an average this stage takes around 1-3 months

depending on the size and scale of project as he has to get approvals from the fire department,

electrical department, health department and various other licenses.

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Standard Operating Procedure (SOP)

Land Procurement

1. Land Identification

1.01 Desktop study-city profiling

1.02 Ground study-city profiling

1.03 Decision

1.04 Location finding

Code no. Activities

1.01 Desktop study-city profiling 1.01.01 Using internet services

1.01.02 Telecommunication

1.01.03 Primary data

1.01.04 Advertisement & classified

1.01.05 Existing knowledge

1.02 Ground study-city profiling 1.02.01 Hospitality & cinema

1.02.02 Colonies & density per colony

1.02.03 Shopping markets & industries

1.02.04 Hospitals, education, clubs and banks

1.02.05 Ongoing property prices.

1.03 Decision 1.03.01 Swot analysis

Note: if yes1.04 Location finding 1.04.01 Property parameter.

1.04.02 Near 2 km. area analysis.

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1.04.03 Type of property.

1.04.04 Legal disputes.

1.04.05 Type of ownership transfer.

1.04.06 Comparison among available properties.

S.No Activity Sub-Activity Decision

1.02.01 How much people spend per month on cinema, hotels & ogrocerry, apprels.

Grocery (4000-4500), apparels (1000-1500), food (800-1000), cinema (300-

500)

And 2 cinema, 18-20 hotels in city.

Good chances for running a multiplex mall.

1.02.02 Developed and good colonies with more than Avg. density/house.

18-20 well developed colonies

With 3000 to 15,000 per sq. yards rates.

Good catchments Area for mall.

1.02.03 No. of shopping markets and industry trend.

Mainly 5-6 shopping markets with 25-30 avg. shops, 10-12k/sq ft selling & 80/sq.ft

rental rates. 3900 (Apprx) industries with mainly Hindustan Zink and j.k cements

etc

More chances for success.

1.02.04 Availability of basic facilities in that market.

Total 13 hospitals, and 134 hospitals

And 10-12 banks.

Should be entering in market.

1.02.05 Commercial, residential, and agricultural property rates.

20 to 30 lakhs rs. Per bigha land rate in the city.

Balanced Land price, and affordable.

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1.03.01 Existing Strength, weakness, and future Threats and opportunities of market.

Strength- big banks, good ind., potential shopping market, growth of retail & real sector.

Weakness- scarcity of basic requirement like- college, schools, literacy power, and basic resources.

Opportunity- moving market trend in tire 3 & 4 cities, first move in market, economy power, GDP growth and level of education and technology.

Threats- increasing inflation rate, taxes, scarcity of natural resources, upcoming malls and fuel prize as my perception.

On that information we should be entering in that market because good chances of success in future.

1.04.01 Positive and negative impact of property like-Land area-40,000 to 70,000 sq. ft, more than 170 ft. front, and social activities under 200 meters.

Positive- 70,000 sq ft. land area.

> 100 ft. road width.

> 180 ft. front.

Square shape.

Negative- school, temple, petrol pump and hospital under 200 meter Area of property.

Good physical evidence of property, no legal problem in future and more chances of grab the market.

1.04.02 Banks, hotels, well developed colonies, shopping markets, and PCI & spending power under 2 km. area.

6 banks, 2 college, 10-12 hotel & restaurants, 4 well developed colonies with high standard locality, high footprint shopping market, per capita income & spending power is good etc.

Good indication of perfect property for open a multiplex mall.

1.04.03 Commercial, residential or agricultural.

Commercial, agricultural but easily changes in commercial property.

Same as our requirement property.

1.04.04 Dispute among No dispute among brothers for holding, Good land and

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brothers, or prohibited of property etc.

available of transfer the property. meeting with our requirements.

1.04.05 Rent, selling or lease. Properties are available on selling and some are in lease.

Selling property is suitable, high real sector growth (35%).

1.04.06 Choose one property among all.

One land come out, it’s have near 4 developed colonies & good locality, no legal dispute, near by market and good connectivity, more than our parameters.

It’s good property among all, and can open a multiplex mall over there, good indication of success

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2. Land Registration

2.01 Negotiation

2.02 Registration

Code no. Activities

2.01 Negotiation 2.01.01 Fixed Meeting with party.

2.01.02 Negotiation on property terms.

Note – if yes

2.02 Registration 2.02.01 Checklist of property

2.02.02 Required documents

2.02.03 Registry

2.02.04 Post-precaution

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Code no. Sub-activities Outcomes Decision

2.01.01 Telecommunication with property agent and fixed the meeting with property owner.

Meeting date has been decided on a particular date for further activities.

Seller party is interested in property selling.

2.01.02 On meeting day both parties fixed the property rates according market rates & location, payment terms, and activities of agreement and registry.

30 lakh/bigha rates have been decided and 10% advance have to given by buyer party & rest at registry time, and a particular date is fixed for agreement & registry process.

Seller is ready for selling, no dispute and ready to take registry step

2.02.01 List of Precautions before land Agreement and registry of property.

Precautions like-type of property,ownership,payment terms, availability of required documents, paid of taxes & bills by seller party etc.

Same as our Property Parameters.

2.02.02 Checking required documents before Property transfer by both parties.

All the documents are collected and Verified by both parties and Sub-registrar.

No problem in Registration.

2.02.03 Agreement and registry (transfer of property holding) Procedure.

All the documents verified and Property holding is transfer fromSeller to buyer.

Property is Ready for Construction Or Other use.

2.02.04 List of precaution after property Transfer from seller to buyer.

1. Deed shall execute it by affixing full Signatures.2. Each page signed by all the sellers.3. Kept the detail of witness like-PAN card And VOTER ID etc.4. Sale deed presented at the jurisdictional Sub-registrar. 

Next step couldBe taken.

Annexure – 01 General precaution.2.01.01 Preliminary Have you identified and visited the yes As our

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Investigation property? Requirements.Is the nature of property residential/ commercial/ industrial/ hotel?

Commercial property

No legal Problem.

Is the nature of property in harmony with the permitted land use?

Yes

Is the property single plot of land or many?

Single plot

Is the plot singularly or jointly owned? Singularly plot Is space ready to start for construction?

Yes

Is the seller and individual/firm/HUF/company/AOP?

Individual

Determining The Right Title & Interest Of The Seller

What are right, title and interest of the seller in the property?Is the owner the original owner? Is his title deed original?

Yes, owner is original.

No legal problemIn future.

In case of a Sale Deed, has the plot been sold to any one else?

No

Have certified copies of all original documents been obtained?

Yes

Is the seller the sole owner/ part owner of the property?

Sole owner

How did the seller acquire the ownership of the property?

Family property

Has a Non-Encumbrance certificate been obtained from a leading law firm/ lawyer?

Yes

Is the plot free from any tenancy and ready for peaceful and vacant possession?

Yes

In the case of joint ownership are the other co-owners joining in the execution of the sale?

No

Is there any dispute between the co-owners or any litigation/ injunction/ attachment of property passed by any court?

No

Is Public notice has been given and response of the same?

Yes, response is same.

Compliance Has the Vendor obtained, if applicable, All documents

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With Local Laws

consent, permission, sanction, NOC of various authorities?

Are Verified and Original.

  a) Municipal Corporation Yes

  b) UIT Yes

  c) Land Acquisition Officer Yes

  d) Any Other Yes

Annexure 2- Documentation.

Code no. Activity Sub-activity Result

2.02.02 Availability of required list of Documents Before Property Transfer.

1.Title deed- legal document proving A Person’s right to property.

YES.

2. Encumbrance certificate- proof of No Legal dispute in property from Last 30 years.

YES.

3. Release certificate-property is not Pledged for loan.

YES.

4. Torence plan- survey detail of Property like- width etc.

YES.

5. Release certificate by all in case of More than one owner of property.

YES.

6. Conveyance deed YES.

7. Witness ID and Address proof Like-PAN card, voter id.

YES.

8. Verified detail of “patta” in the Name of owner.

YES.

9. paid bills of property tax, light and Water bills.

YES.

10. ID and Address proof of both Parties.

YES.

11. POA- in case of property owner is NRI.

Property owner Is Indian.

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Annexure 3- REGISTRY.

code no. Activity Sub-activity Outcome

2.02.03 Detail of registry process and expenses list

1. Agreement for sale Draft agreement on Rs 50 Stamp between the parties involved in transaction.With covers following things-1) 8 cr. Agreed cost of land.2) 10% Advance amount detail.3) 2 months Time span of actual sale should take place.4) 20% of property cost has to pay if any party makes a default.5) Both parties and witness signed and documents are verified.

2. Registration Required documents are available for registration like-1. Original title deed.2. Previous deeds.3. Property taxes.4. Torence plan.5. Two witness.

3. Expenses list. List of Expenses is available like- 1) Stamp duty- 7.5% of actual property cost (M.P).2) Registration fees- 2% of property.3) Document writers/lawyers fees- depend on cost of property and vary with individuals.4) 2% broker cost.

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What India makes a fast Emerging Business Destination –

Special Incentives provided by the government to attract investments. Less time and few procedures required to start a business Growing potential of Tier II and Tier III cities Easy availability of skilled talent pool Emerging middle class Increasing disposable income Number of emerging sectors witnessing growth Easiness of FDI in industry.

Business Opportunity in India

Domestic Market Opportunity

Vast population. Increasing purchasing Power. Growing size of middle and higher consumer class.

Off-shoring Opportunity

Availability of skilled talent pool. Cost Savings. Knowledge/R&D hub.

Sourcing Opportunity

Availability of raw materials. Presence of strong industry infrastructure. Developed technology. Cost savings.

Expend the Property- cost and revenue analysis.

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These are looking the properties in potential, economically sound cities on rent, Lease or J.V where the city Population and others sources are a little bit less than company decided Parameters.They are forecasting & selecting the property on the basis of balance-sheet of property.

Anand, Hanumangarh              

No. of Seats   981  

No. of Shows per day   2  

No. of days in month   30  

Occupancy Level   10%  

Average Ticket Price   20  

Monthly Ticket Income     117720

No of Persons in month   5886  

SPH   15  

Profit on Items   20%  

Concession Income     17658

Total Income     135378

Expenses      

Electricity, Labour, Maintance   30000  

Movie Rental 40% 36222  

Entertainment Tax % 30 27166  

Administration cost   10000  

Advertisement Cost   5000  

     

      108388

Rental     26990

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Preeti, Anoopgarh             

No. of Seats   757  

No. of Shows per day   3  

No. of days in month   30  

Occupancy Level   20%  

Average Ticket Price   13  

Monthly Ticket Income     177138

No of Persons in month   13626  

SPH   15  

Profit on Items   20%  

Concession Income     40878

Total Income     218016

Expenses      

Electricity, Labour, Maintance   30000  

Movie Rental 40% 54504  

Entertainment Tax % 30% 40878  

Administration cost   10000  

Advertisement Cost   5000  

       

      140382

Rental     77634

Anand, Anoopgarh             

       

No. of Seats   280  

No. of Shows per day   3  

No. of days in month   30  

Occupancy Level   25%  

Average Ticket Price   12  

Monthly Ticket Income     75600

No of Persons in month   6300  

SPH   15  

Profit on Items   20%  

Concession Income     18900

Total Income     94500

Expenses      

Electricity, Labour, Maintance   30000  

Movie Rental 40% 23262  

Entertainment Tax % 30 17446  

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Administration Cost   10000  

Advertisement Cost   5000  

       

      85708

Rental     8792

Shiv Mandir, Hanumangarh      

       

       

No. of Seats   642  

No. of Shows per day   3  

No. of days in month   30  

Occupancy Level   20%  

Average Ticket Price   30  

Monthly Ticket Income     346680

No of Persons in month   11556  

SPH   15  

Profit on Items   20%  

Concession Income     34668

Total Income     381348

Expenses      

Electricity, Labour, Maintance   30000  

Movie Rental 40% 106671  

Entertainment Tax % 30 80003  

Administration Cost   10000  

Advertisement Cost   5000  

       

      231674

Rental     149674

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Ashish, Hanumangarh      

       

       

No. of Seats   810  

No. of Shows per day   4  

No. of days in month   30  

Occupancy Level   10%  

Average Ticket Price   22  

Monthly Ticket Income     213840

No of Persons in month   9720  

SPH   15  

Profit on Items   20%  

Concession Income     29160

Total Income     243000

Expenses      

Electricity, Labour, Maintance   30000  

Movie Rental 40% 65797  

Entertainment Tax % 30 49348  

Administration Cost   10000  

Advertisement Cost   5000  

       

      160145

Rental     82855

AGE WISE DISTRIBUTION OF CINEMA VIEWERS

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REAL ESTATE SUPPLYMultiplexes are often regarded as the footfall magnets for malls. The concept of shopping-cumdining-cum-entertainment outing is gaining popularity among the urban populace, where multiplexes in malls become the most relevant destination choice. Almost all upcoming malls have a multiplex operator as an

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anchor tenant. Hence, we believe that the supply of real estate will not be an issue for the sector, even though the pace might be slow due to development delays. India is presently witnessing a retail revolution with many big players foraying into organized retail and many mall development plans being announced in order to cater to their expansion plans. The pace of mall development will surely ensure availability of quality real estate for multiplex operators.

PROCEDURE OF SETTING UP A MULTIPLEX

The procedure of setting up a multiplex is divided into 3 phases after the multiplex operator has decided the location of the multiplex and entered into the agreement with the mall developer.

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Development of property In this stage the mall developer develops the property according to the specifications agreed upon by the multiplex operator and the mall developer. The mall developer has to get certain approvals from various authorities. After the mall developer completes development and gets approvals, the property is handed over to the multiplex operator. Fit outs: After the property has been handed over to the multiplex operator, the interiors are done up by him. This includes civil and architectural work, designing, seating, carpeting, putting up the screens etc. This stage normally takes between 2-6 months depending on the size and scale of the project. Approvals: After fit outs are completed, the multiplex operator has to get various approvals before he can commence operations. On an average this stage takes around 1-3 months depending on the state as he has to get approvals from the fire department, electrical department, health department and various other licenses.

MULTIPLEX BUZZ!!The nation's multiplex industry is all set for an unprecedented boom buoyed by positive regulatory changes and booming consumerism. Multiplexes /megaplexes have been instrumental in contributing 28 percent of the total theatrical sales for the film industry according to a report by Systematix Institutional Research. Industry experts estimate that top six multiplex chains have plans of 300-500 screens each by FY-10.

DLF, a leading real estate player in the country, plans to invest US$ 298.12 million for the expansion of its multiplex business. The company has planned to add at least 500 screens in the next four to five years across the country.

Entertainment conglomerate Adlabs Cinemas has drawn up a plan to build 12 megaplexes in India where you can not only see movies but also cricket and soccer matches on screen.

Multiplex chain PVR Cinemas, which currently has 92 screens, is also planning to add over 150 screens across India, staggered over a period of three years from 2008-2010, with a total investment outlay of around US$ 71.55 million.

Cinemax India, the multiplex chain which currently has 55 screens over 17 properties across the country is planning to scale up its presence to 299 screens across about 100 properties by fiscal 2010

SWOT Analysis

1. Strength First mover in Rajasthan for CINEMA CUM ACTIVITY CENTER. Untapped Tier 2 & 3 market in India. Apprx. 19 % Entertainment industry growth.

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First mover advantage in in tier 3 cities with Multiplex mall. Slow down in property price.

2. Weakness

Financial crisis in global market. Rising of inflation tate, interest rates, and crude oil. Slow down in GDP Growth. Slow down in property price. More competion in cinema market.

3. Opportunity

Good industry growth. High economic growth. Changing the life style trends in rural market. Growth in literacy rate and house hold income. Sound growth in organized retail markt. More FDI & FII in India. SEZ system in india.

4. Threats

Cut throat competition in market. Competition to become the power among nations. Decreasing the volume of natural resources.

Learning outcomes and recommendations

1. Learning outcome

Understanding the importance of organization culture. Importance of time management and Discipline in the office.

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New trends in cinema and real estate market. Consumer behavior of rural Indians. Importance of strategy to develop the business. How to conduct a physiabilty study? Importance of SOP IN BUSINESS DEVELOPMENT and property purchasing. New trends and growth drivers in rural market. Clear understanding of segmentation, targeting & positioning. Uses of minimum resources to got maximum profit. Importance of vision & mission, objective of organization. How to make strategy for enter in new market.

2. Recommendations

We should adopt lease strategy in nascent stage of org. Open the property in emerging cities in India. Recruiting the skilled work force. Should be clear in comp. vision & mission statement. Choosing high house hold income cities. Consistency and effectiveness in product service. More focused in branding and product promotion. More Transparency in property purchasing and go through every steps in property

purchasing with more concern and clarify every documents and negotiation. First mover advantage.

References

I got information and data of these following websites, these websites are Valuable for management students.

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1. www.google.com 2. www.ibef.org 3. www.indiarealitynews .com 4. www.knowledge.wharton.upenn.edu/india

5. Marketing management- Philip chortler

6. www.magicbricks.com

7. www.99acres.com

8. www.jaipur.ghoomo.com

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