According to a recent announcement by The Abraaj Group, it has officially entered Pakistan’s entertainment industry and has acquired shares in Cinepax cinemas.
Cinepax has 29 screens in 12 locations across Pakistan. Abraaj will support the company in establishing international standard multiplex cinemas in new and upcoming locales in more cities of the country.
With Abraaj’s investment, Cinepax plans to develop 80 new cinemas across multiple locations over the next four years and also intends to grow to other entertainment related ventures.
Abraaj announcement said that Pakistan’s entertainment industry has significant growth potential underpinned by strong demographic drivers, positive changes in regulatory frameworks, and a growing number of malls that can support cinema multiplexes.
In addition, the currently low ratio of cinema screens (0.5 per million population) and the opportunity to revitalize the local film industry represent a compelling investment rationale.
The Group places a high priority on environmental, social and governance considerations and will actively assist with job creation and training of multiplex staff, as well as strengthening governance and operational efficiencies to achieve best-in-class operating standards.
The Abraaj Group Partner for Asia, Omar Lodhi, said that the group’s investment into Cinepax demonstrates its faith in Pakistan’s young population and expanding middle class.
“As one of the most active investors in Pakistan, with a strong on-ground presence, we see a long-term market opportunity in the cinema operator and video streaming business.” Omar Lodhi added.
Omar further said that Cinepax’s founders, Arif Baigmohamed and Pir Saad Ahsanuddin, reflect Pakistan’s vibrant entrepreneurship ecosystem, having helped grow the cinema sector in the country. We look forward to partnering with Cinepax’s management team in enabling the company to reach a wider audience.
Chairman of the Cinepax Board, Arif Baigmohamed, said
We are also committed to supporting local talent and the film making industry. 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 people across the country, providing much needed entertainment options.
Arif Baigmohamed and Pir Saad Ahsanuddin established Cinepax in 2006 and launched their first multiplex in 2007. Since then, the Company has established itself as the market leader and today has 29 screens.
The Abraaj Group has been present in Pakistan since 2004. This transaction marks Abraaj’s 9th investment in Pakistan across a number of sectors including healthcare, power distribution, renewable energy and industrials.