After Anil, now Mukesh Ambani to open multiplex chain

Mukesh Ambani’s Reliance Retail and Yashraj Films may float a 74:26 JV to set up multiplexes, run entertainment channels and produce soap operas for television. The new company formed out of this JV will use the upcoming malls of Reliance Retail nationwide to set up multiplexes.

Reliance Retail is said to invest Rs.200 crore in the venture and augurs well with its mall business, as it can then offer a complete package of shopping, fun, food and entertainment. Also, the film exhibition industry is worth $1.6billion and has seen rapid growth thus creating a space for more players in the business.

Yash Raj Films was earlier rumoured to have tied up with PE firm Blackstone for this venture. It was also planning to convert single screen theatres to multi-screen ones in big metros. The venture may get it access to prime locations in the country.

Mukesh Ambani’s venture may be in direct conflict with his brother Anil Ambani’s Adlabs, which has good screen presence across the country. However, this may not violate the no-competition clause among the brothers.

Cinema exhibition seems to be in line with Reliance Retail strategy but for television content, it is not exactly in sync with the company’s operations as they does not have a separate media arm and would thus stand to gain little out of it. via