1. International
Marketing

3. Agenda
4.Adlabs
5.Highlights
6.Key Players
7.Established Leader
8.International Portfolio
9.Footprints in international marketing
10.Business
a. Production & Distribution
b. Television
c. Films
d. Big FM Radio
• SWOT Analysis
• Future Plans

4. Founder
• Manmohan Shetty
founded Adlabs in
1975

5. About Adlabs
Adlabs Films Limited, a member of the Reliance Anil Dhirubhai Ambani
Group, is India’s fastest growing film and entertainment services company
Adlabs has a dominant and comprehensive presence in Film Services:
Motion Picture Processing and DI, Film Restoration, Digital Mastering,
Studios and Equipment rentals
Adlabs Films also operates India's largest cinema chain with about 400
screens spread across India, US and Malaysia. It has a significant presence
in the film distribution space with a nationwide presence across India as
well as offices in London, New York, Los Angeles and Malaysia
Adlabs’ television venture, Synergy Adlabs, is among the top players in
the television programming industry

6. Highlights
 Adlabs Cinemas will be recipient of ‘International Exhibitor of the
Year 2008’ by CineAsia 2008 at Macau in December 2008
 Only Lab accorded Kodak Image Care certificate for the 4th
consecutive year
 1st in Asia : Adlabs facilities comprising Entire Lab, DI Lab and Digital
cinema mastering facility accredited by Federation Against Copyright
Theft (FACT), UK.
 Adlab’s financial rating continues to be highest grade at A1+ by ICRA,
the only company in the media and entertainment space
 FM radio business to be de merged effective April 1, 2008 consequent
to the Board decision

7. Contd….
 Financials
Rs. In Crores
Period Jul Sep 08 Jul Sep 07 Apr Jun 08 * YOY QOQ
144.99
Revenue From Operations 216.59 178.08 49% 22%
EBIDTA from operations 38.07 13.76 29.38 177% 30%

8. Key Players
Domestic
• PVR cinemas
• Inox
• E-cinemas
• Shringar cinemas
• Wave cinemas

9. Established leadership in Cinemas

10. Contd…
 400+ screens as of date : 186 screens in India;. 200+ screen in US, 36
screens in Malaysia & 6 screens in Mauritius
 Adlabs Cinemas contribution to Box office of large films
 India : 10% to 14%
 US : 25 to 40%
 Adlabs is India’s first cinema chain to show both 3D & 6D format;
premiered 3D Hollywood blockbuster Journey to the centre of the Earth
in BIG Digital 3D for the first time at Adlabs cinemas, Vashi, Navi
Mumbai
 In line with the Reliance ADA Group’s philosophy for a single
monolithic consumer entertainment brand “BIG”, all Adlabs cinemas will
be re-branded BIG cinemas from October 28, 2008

11. Contd…
 Taking existing cinema destinations, remodeling them and
transforming customer experience through contemporary
ambience complemented with service
 Projection, sound & experience standards are consistent all
across the country
 Over 35 projects completed
 Has seen over 100% increase in occupancy, ticket prices,
footfalls along with more efficient programming

12. The change Adlabs brings
Moreshwar, Pen (Maharashtra)
Priya, Tenali (Andhra Pradesh)

13. Contd…
Natraj, Kota ( Rajasthan)
Gemini, Warangal (Andhra Pradesh)

14. Adlabs international exhibition portfolio
 World-wide clusters of South Asians (Persons of Indian
Origin), with strong affinity to Indian entertainment offers an
opportunity to Adlabs
 Over 200 screens in US, coast to coast
 Over 51 screens in Malaysia
 6 screen in Mauritius and signed up an upcoming mall
 Will soon be the only multiplex present in Kathmandu, Nepal

15. Adlabs has a footprint in the markets of US and
Malaysia
High United Malaysia
States United
Kingdom Myanmar (Burma)
South Africa
Canada
PIO Presence
Kenya
Greece
Guyana
Low Spain
High Medium Low
Movie Theatre Penetration

16. Business
CINEMA
DISTRIBUTION
TELEVISION
SERVICES
PRODUCTION

17. Production & Distribution

18. P&D
 Co-produced “Singh is King” with Vipul Shah, which
has been declared a huge success
 Successfully distributed BIG Pictures’ Rock On across
in India and Overseas
 Other features presented include : Love Story 2050 ;
Punjabi Film “Mera Pind” in India in select territories
and Overseas

19. Television

20. Synergy Adlabs is a key content player
 Produces original format, studio based, interactive and fiction shows
(a leader in non fiction)
 Licensee in international formats: (Who Wants to be a Millionaire,
Dancing with the Stars, America’s got Talent and Are you smarter
than a fifth grader)
 Fiction, Regional content, Talent Hunt and Lifestyle programming will
be the additional drivers for the immediate future along with our
established share of new big ticket non fiction channel drivers
 Over 15 shows lined up across 8 channels with approx. 800 Hrs of
programming in FY 09/10.

21. Film Services

22. Film to any device : Building presence across the value chain
TV/
DTH/ IPTV
Mobile
Adlabs has built competencies in handling film : being leveraged to cover a range of services

23. Lab and Digital Intermediate
Processing Lab
 Largest facility in India with 150 clients and 73% share of
the Hindi film market
 Presence in Mumbai, Chennai and Kolkotta
 Mumbai has won 8 national awards including last 3 awards
in a row
 Certified by Kodak Image Care 4 years in a row

24. Contd…
DI Lab
 DI facility is the first 4K facility with real time grading
facilities
 Integrated offerings to clients include Telecine, Digital
Optics, Promo packaging, Complete DI & deliverables
(Conversion, Scanning, HD Recording & Sub titling)
 1st in Asia : Adlabs facility comprising Lab, DI Lab and
digital cinema mastering facility accredited by Federation
Against Copyright Theft (FACT), UK

25. Mechanical effects : Studios and equipment
Studios
 Over 200,000 sq ft with 6 sound stages being developed at Film
City in Mumbai
 International firm of architects from LA engaged to build the
facility
 Will support a mix of film and TV content and will be
operational by December 2009

26. Contd…
Equipment Rentals & Services : Lights, Cameras, Grips
 Presence in TV broadcasting over the last 1 year as a premium
service provider
 Shows include Dus ka Dum, ET Corporate Awards, Jhalak
Dikhla Ja & Nach Baliye 4
 Charge a premium compared to others due to value add in
terms of technical solutions
 Expanding the operations to cover film cameras as an
integrated service offering

27. Digital Cinema mastering and projection
 Adlabs operates the 1st and only DCI grade digital cinema operation in India
 Mastering facility at Filmcity fully operational
 10000 show milestone achieved
 Successfully transmitted and played several shows on the back of Reliance
Communications’ fiber optic network with over 2000 shows : A 1st in the world
 Preferred service provider for all digital mastering in 2K
 Over 30 Hindi Films done
 International work includes trailors for Warner Brothers “Chandni Chowk to
China” & Sony’s James Bond release “Quantum of solace”

28. FM Radio

29. BIG 92.7 FM is India’s No 1 operator with 44
operational stations
 FM Radio Industry has seen 25 % growth over the previous year
 BIG 92.7 FM is No. 1 station with highest share in MUMBAI & BANGALORE
(12+, All) (Source : RAM)
 No.1 station among affluent young adults (20-34,AB) in KOLKATA (Source :
RAM)
 No.1 station in Surat, Chandigarh & Guwahati ( Source : Indica Research)
 Won the Lintas Media Group award
 HIGHEST AUDIENCE GROWTH IN ONE YEAR for any media brand
 Comprehensive solutions to clients covering on-air, on-ground events and
activations and digital web and mobile solutions

30. Recent TRAI Recommendations for Phase III are positive
 Additional channels in the same city to existing players
 At least three players excluding AIR in any district
 Maximum number of channels to a radio operator not more than 50% of total
channels in the district
 News and Current affairs on FM Radio may be permitted
 FDI / FII limit from present 20% to
 26% for news radio channels and
 49% for non-news radio channels
 Networking of FM radio programs across the radio network
 Auto Renewal of the radio license

31. Adlabs proposes to de-merge the
FM Radio business
 The Board of Directors at its meeting held on October 25, 2008 has
approved a scheme of arrangement envisaging the de-merger of the
radio business into Reliance Unicom Limited
 This scheme is subject to requisite permissions and approvals
 Pursuant to the scheme, 1 equity share of Reliance Unicom Limited
shall be issued in respect of every one equity share held by the
shareholders in Adlabs Films Limited
 The entire process is expected to take 4 to 6 months

32. SWOT Analysis

33. SWOT ANALYSIS
Strengths
 The company is focused in increasing multiplexes across the country with
close to 100 screens in the next couple of years from the current 33 screens.
This will increase the seat size by 3 times
 The biggest strong point for the company is the current location of its
theatres. They are mostly centrally located. Also, unlike its competitors,
they have 8 properties with 7 in Mumbai giving free rental cost (only
opportunity cost involved)
 The company has a strong experience in building and construction. They
have a premium theatre too. The utilization of this could probably indicate
the pricing power for the company

34. Contd…
Weakness
 High dependence on distributor for showing films in every theatre
and for every film. This gives a very unstable business model
when one compares with Adlabs which are in the other end of the
value chain
 The biggest weakness for any investor, which is mentioned rightly
in the risk factors is the capital structure. It is so unfair for the
retail investor. The bonus issue last year has diluted the earnings
in a very big game. Further, there is also an issue of a preference
share issue at no cost. This has diluted the earnings even further

35. Contd…
 The promoters have been investing in multiple business' streams. The
promoters' are willing to enter into many areas with a motive of
profit. The promoters have more than 25 different companies,
partnerships etc and only 4 are operational
Opportunity
 There is a big demand for theatres across the country given the poor
quality currently in existence across places. Also, most theatres are
willing to open in Sec B and C cities and move into small towns too
 They are willing to work on different model for pricing tickets
depending on time/day
 The contribution of Multiplexes has been increasing constantly and
is close to 20%

36. Contd…
Threat
 Success of theatres are movie specific and this can tilt
towards failure with poor movie scripts
 Alternate sources of entertainment such as DTH, DVD can
lead to lower sales
 Removal of entertainment tax benefits can risk profitability if
lower pricing power is not passed to the customer

37. Future Plans
 Majority stake in Malaysian Lotus Five Star Cinemas
 200 cinema halls in 28 North American cities –New York
Detroit and Washington
 In talks with Dream Works ( Joint venture)

38. Never a dull moment !