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The 10-year old-film exhibition, Carnival Cinemas plans to raise Rs. 400 crores from Yes Bank to restructure its debt and to open additional 100+ screens.
Presently, Carnival Cinemas has more than 450 screens spread over 112 cities. The company has a debt of Rs. 800 crores - Rs. 1,000 crores, as confirmed by the sources. The company had promised to pay the dues to its employees by December 2021. However, it failed to fulfill its obligation and asked the employees to market and advertise the company's Fresh Farmse business during the pandemic times. After which, most of its employees resigned.
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A film analyst added "Making a comeback will not be easy for the group. In most of the properties, they have defaulted in terms of rentals. So, these properties have not even started."
“Covid-19 played a spoilsport in terms of screen launches for Carnival Cinemas which had to completely shut down because of being a debt-raised company.” the CEO of Carnival Cinemas, Vishal Sawhney had said in an interview conducted with Moneycontrol.
As per the data derived from Statista, the run rate ratio for the Carnival Cinemas in a year was 80 to 100 screens. Out of which, 60% were from the organic screens while the other 40% came from the ones that were acquired by the company. The Company estimates to reach up to 567 screens by the end of F.Y 23, and 1000 screens in the next 2 years.
Other big players like PVR and INOX have an average count of 970 and 580 screens respectively all over India.
As per the report published by EY-FICCI, the exhibition sector's domestic revenue dropped from Rs 11,500 crore to Rs 3,900 crore in just 2 years. And as per estimations, the revenue will zoom back to the pre-COVID level of Rs 7,500 crore, by the end of F.Y 22.
-by Gautam
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