Major Cineplex Group Plc, the country’s largest cinema operator, is partnering Japan’s Aeon Mall to operate a cinema complex in Cambodia’s capital.
The Phnom Penh cinema complex will have 17 theatres with 2,000 seats and 14 bowling lanes on 6,000 square metres.
The investment of 150 million baht will be made through a holding company of Major’s international arm in a joint venture with a local firm.
The cinema complex will be in Aeon Mall, which is being built in a commercial area near Phnom Penh’s airport. Operations are due to start in mid-2014.
“I am very confident to expand the business to Cambodia due to its fast-growing economy, while its lifestyle is familiar to customers in Thailand,” said Major chairman Vicha Poolvaraluck.
The company will continue its expansion in Aeon’s malls, both in Thailand’s upcountry regions and in other Southeast Asian nations such as Laos, Myanmar and Vietnam.
About 70% of Cambodian customers are younger than 30, reflecting the country’s growing potential in terms of purchasing power.
Major has also looked at the opportunity to expand in other areas of Cambodia, particularly Siem Reap, with Aeon Mall, Mr Vicha said.
Since 2008, Major has expanded its business in India through a joint venture with local partner PVR to develop a bowling centre with 80 lanes. The company will spend another 150 million baht to expand the site to 120 lanes.
Domestic consumption in Thailand has remained a key growth driver for Major Cineplex. It aims to add 100 cinema screens by investing 1 billion baht at new malls and hypermarket chains operated by Central Pattana, Tesco Lotus and Big C.
Major operates 406 movie screens in 30 provinces under brands such as Major Cineplex, EGV, Paragon Cineplex and Mega Cineplex.
The company aims to expand to 600 screens in 2015 in line with growing purchasing power upcountry. At present, 30% of its screens are upcountry, with 70% in Greater Bangkok.
Aeon Mall has other Thai partners for its Phnom Penh mall including restaurant chain Black Canyon (Thailand), cosmetics brand ICC International Plc and restaurant and bakery operator S&P Syndicate Plc.
Source: Bangkok Post (February 13, 2013)
Cambodian Business Corner 