By Baiju NT [ September 05, 2008 ]
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Pyramid Saimira eyes British market

Chennai-based Pyramid Saimira Group, one of the biggest players of the Indian film industry, is looking to enter the British market by taking over Reel Cinemas, a Midlands-based chain that shows art house films and classic movies alongside Hollywood blockbusters.

Pyramid Saimira Group is in talks to take control of Reel Cinemas in a deal that would value the British company at between £25 million and £30 million, sources said. The discussions with Reel are 'in a primitive stage', the company said. A tie-up would mark the first foray into the British theatre business by one of the mainstays of the Indian film industry.

Pyramid Saimira, one of the subcontinent's most prominent film producers and distributors, was established 10 years ago and owns a chain of cinema halls in southern India. Pyramid Saimira already operates in six countries and has also expanded to the US and parts of Southeast Asia, including Malaysia and Singapore. It operates about 800 cinema movie screens and is collaborating with Walt Disney on new productions. Last year, the Indian company announced plans to raise $1 billion to fund an ambitious international expansion plan.

Kailash Chander Suri, founder the privately-owned Reel, said that talks over a tie-up were ongoing. Reel operates 13 cinemas in the UK and has plans to open another seven over the next two years.

Several Indian film companies have already set their sights on the West. In May, Indian industrialist Anil Ambani announced a $1 billion foray into Hollywood through tie-ups with an array of A-list stars including George Clooney, Nicholas Cage, Tom Hanks and Brad Pitt. He is expected to announce a similar funding deal with Steven Spielberg in the coming months.