Everstone Capital to Have 30% Stake in Fun Republic
Everstone Capital is a private equity firm in the process of purchasing a minority stake in lifestyle mall operator Fun Republic in Mumbai, which is also controlled by Subhash Chandra Goel. Up to thirty percent of this Essel Group company might be bought by the firm that is promoted by Sameer Sain and Atul Kapoor. Both parties had no comment on the subject, when approached. This fund also supported a JV (joint venture) to popularise the Burger King brand in the nation, as well as buying a minority stake in the Ritu Kumar-owned fashion brand.
Fun Republic started its first mall in Andheri around the early 2000s, and they have been on the hunt for capital to grow further. Since its accomplishment in Mumbai, the lifestyle mall operator has expanded to other cities, like Chandigarh, Coimbatore, and Lucknow. The company hoped to continue its growth, but the economic situation hasn’t allowed it to do so.
Fun Cinemas and Fun Republic are run by a holding company called ECity Ventures. The mall operator gives consumers shopping, fine dining, and entertainment in one place. Anuj Puri, country head of global realty services firm Jones Lang LaSalle, says that the mall sees itself as a class apart. Its core concept is based on providing entertainment. He expects India’s market for this model to increase, as expenditure on entertainment will go up. He was also of the opinion that the average Indian’s enthusiasm for movies will encourage the popularity of multiplexes.
Acquisitions have been driving growth in the multiplex industry for 3 years. Inox solidified its existence in the eastern, western, and southern regions by acquiring Fame, and in 2012 Cinemax was purchased by PVR giving it more visibility in the western areas. This consolidation has strengthened revenues per screen quarter for multiplexes.
According to a report by KPMG, increase in ticket rates, and multiplex and digital screen expansion will be gradual in the future. These obstacles create a need for an alternative source of funding.
Source: The Economic Times
Burger King, ECity Ventures, Essel Group company, Everstone Capital, first mall in Andheri, Fun Republic in Mumbai, global realty services firm Jones Lang LaSalle, KPMG, multiplex industry, Subhash Chandra Goel
