Pyramid Saimira shuts theatres in North
Chennai-based media company Pyramid Saimira, which has a strong presence in the South Indian exhibition space, has cut down on its expansion plans in North India as it is losing money in the Northwest region of India, a top official said on Monday.
In the last two months, the theatre chain has closed down 25 screens in Western India and another eight in Northern India where it had a limited presence and a cutback of revenue. Instead, the company is focusing more on the South Indian market and is spending $25 million this year on maintaining its theatres, Chairman P.S. Saminathan said.
"We thought we should concentrate on areas where we have strength and where we can maintain the margins," Saminathan said, adding that the company has also exited Hindi movie distribution as it finds costs high and the business unprofitable. "The Hindi industry has become very loss-making now because the cost of content has increased significantly," he said.
Pyramid Saimira recently launched its first multiplex in China jointly with China's Longzhe Culture and Theatre. Pyramid has invested about $10 million in China already and is now expanding its reach in the US, Malaysia and Singapore.
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