The Abraaj Group today it has invested, through its Funds, in Cinepax Limited Pakistan’s leading cinema operator. Cinepax has a presence in seven cities.
Cinepax was established in 2006 by Arif Baigmohamed and Pir Saad Ahsanuddin, with its first multiplex launching in 2007. The Company is the current market leader with 30 screens in 13 sites across Pakistan. Cinepax will develop 80 additional new screens across multiple sites over the next four years.
Cinepax has a presence in Karachi, Lahore, Rawalpindi, Faisalabad, Gujranwala, Gujrat and Hyderabad.
The growth potential for the entertainment industry is significant and underpinned by strong demographic drivers, positive changes in regulatory frameworks, and a boost in the number of commercial malls in the country. The market is also underpenetrated with a ratio of screens per capita at 0.5 only. Additionally, the revitalization of the local film industry is also an important driver – 23 Pakistani films were made in 2016, compared to just 8 in 2014. It is expected that with these drivers, the number of screens in Pakistan will grow by more than 400 screens in the next five years.
Abraaj will enable the Company to establish international standard multiplex cinemas in new and upcoming developments to drive an exceptional consumer experience. The Group, which invests with a rigorous approach to environmental, social and governance considerations, will actively assist with job creation and training of multiplex staff, as well as strengthen governance and operational efficiencies to achieve best-in-class operating standards.
Commenting on the transaction, Omar Lodhi, Partner for Asia at The Abraaj Group, said:
“Abraaj is one of the most active investors in Pakistan – with our strong on-the-ground presence and deep roots in the market enabling us to source this deal. Our investment demonstrates the Group’s continued belief in the opportunity presented by Pakistan’s young growing population and expanding middle class. This is a group that wants increased and improved entertainment options, which Cinepax is ideally positioned to provide for them. Fueled by these favourable demographics, we see attractive market opportunities in the cinema operator business and we look forward to partnering with Cinepax’s management team in expanding the Company to reach a broader audience.”
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Arif Baigmohamed, Chairman of the Board of Cinepax, added:
“Since our company was founded 10 years ago, we have grown to more than 30 screens in 13 sites, and continue to see an opportunity to further expand our footprint in not only our core cinema exhibition business, but new related opportunities, including the digital video space. The Abraaj Group holds an impressive track record in the consumer sector, having taken companies like ours to the next level of growth and evolution. We are delighted to welcome Abraaj as an investor into our business and look forward to partnering together to reach more consumers across the country, providing much needed entertainment options.”
The Abraaj Group has been present in Pakistan since 2004. This transaction marks Abraaj’s 9th investment into Pakistan across a range of sectors including healthcare, power, renewable energy and industrials.
