Nature of Business
UFO Moviez India Ltd. is India’s largest digital cinema distribution network and in-cinema advertising platform in terms of number of screens. UFO operates India’s largest satellite-based, digital cinema distribution network using its UFO-M4 platform, as well as India’s largest D-Cinema network.
As of September 2015, UFO’s global network, along with its subsidiaries and associates, spans 6,557 screens worldwide, including 4,940 screens across India & Nepal and 1,617 screens across the Middle East (UAE, Bahrain, Qatar, Oman, Kuwait, Lebanon and Jordan), Israel, Mexico and the USA serviced by its subsidiary Scrabble Entertainment Ltd.
3i invested $22m in UFO Moviez in January 2007 with the aim of funding the company’s expansion plans. As a pioneer in the cutting edge and fast growing digital cinema market, UFO used this capital to invest in the necessary hardware to expand its footprint in India and abroad.
We have also used our sector experience and local knowledge to work closely with the management team on a number of strategic initiatives which included leveraging its 100m monthly viewership to establish UFO as a prime advertising medium. 3i, along with other investors, initiated an operational leverage improvement exercise spearheaded by an external consulting firm in 2014.
In 2011, the company raised additional funds from Providence Equity Partners, which included a secondary purchase from 3i. These proceeds have enabled UFO to further fund its capital expenditure including acquiring majority stakes in Southern Digital Screenz, the southern franchisee of UFO, and in Scrabble Entertainment, the largest provider of Digital Cinema Initiatives Systems in India.
In May 2015, the company successfully listed on the Indian stock exchange allowing 3i to realise part of its stake.
Regulatory notice: This transaction involved a recommendation of 3i Investments plc, advised by 3i India.