Mumbai, April 1 — Cineline India Ltd, a city-based cinema chain, has declared itself net debt-free after finalising a ₹270 crore deal to monetise its non-core hotel asset, setting the stage for aggressive expansion in its core film exhibition business.
According to Ashish Kanakia, CEO of Cineline India, the deal has enabled the company to eliminate ₹120 crore in debt at the subsidiary level. Additionally, the remaining ₹108 crore in debt linked to the core film business will also be fully repaid, effectively making the company net debt-free.
“This move will accelerate growth and help expand our market presence through the addition of new screens,” said Kanakia.
“With debt to be fully repaid, we would strengthen our financial position and generate consistent free cash flow, which will be reinvested to drive business growth,” he added.
Cineline India now aims to capitalise on the anticipated revival of the Indian box office, positioning itself for significant growth in the entertainment sector.
Hotel Sale Marks Strategic Shift
The company has sold its Goa-based hotel property, ‘Hyatt Centric’, to Sparsh Vidhyut for an enterprise value of ₹270 crore. The asset was owned by R&H Spaces Private Ltd, a wholly-owned subsidiary of Cineline India.According to Ashish Kanakia, CEO of Cineline India, the deal has enabled the company to eliminate ₹120 crore in debt at the subsidiary level. Additionally, the remaining ₹108 crore in debt linked to the core film business will also be fully repaid, effectively making the company net debt-free.
Focus on Scaling MovieMAX Screens
Kanakia emphasised that becoming debt-free is a crucial milestone for Cineline India, as it enables the company to intensify its focus on growing its MovieMAX brand. Currently, the chain operates 77 screens across 21 properties in six Indian states and has secured agreements for 82 more screens.“This move will accelerate growth and help expand our market presence through the addition of new screens,” said Kanakia.
Monetisation of Non-Core Assets Totals ₹351 Crore
Over the past two years, Cineline India has monetised non-core real estate assets worth ₹351 crore. This includes the sale of Eternity Mall in Nagpur for ₹60 crore and two commercial properties in Mumbai for ₹21 crore.Innovative Expansion Strategy
Kanakia highlighted the company’s strategic shift toward capital-efficient expansion by leveraging low revenue-share or profit-sharing models, where developers fund the capital expenditure.“With debt to be fully repaid, we would strengthen our financial position and generate consistent free cash flow, which will be reinvested to drive business growth,” he added.
Cineline India now aims to capitalise on the anticipated revival of the Indian box office, positioning itself for significant growth in the entertainment sector.
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