The Anil Ambani-controlled company will be investing INR 1.2 billion for setting up four studios in Film City, Mumbai, and another INR 1.5 billion will be spent on developing cinema theatres. The total spend on digital post-production studios will account for INR 1 billion.

Speaking on this initiative, Manmohan Shetty, Adlabs Films Chairman and Managing Director said, “We will be investing around INR 3.7 billion in these three areas. We plan to have 200 screens in 76 properties and are also going to expand on the studio front. We should have the four studios by FY’09”.

Adlabs is the largest cinemas chain in India, with 107 screens. To further its expansion plans, Adlabs has secured a letter of intent from the government of Maharashtra for setting up studios in the Film City. Ironically, Shetty has resigned from Adlabs, effective from 30 November this year.

Adlabs’ foray into special effects will be crucial in integrating the company’s activities, which include film exhibition, production, distribution and processing, and allied services. The company also plans to enter Telugu and Tamil feature film production.