NOVA EUC : OPERATING MODEL

NOVA EUC is an initiative to empower and nurture the entrepreneurship desire of small-town individuals. The Village Level Entreprenuer has access to the required plot of land, ability to invest in developing the EUC's warm shell structure and also manage the EUC's day-today operations.

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Management Agreement 

  • Fixed fee of Rs 1,12,500 per month, with 5% escalation every 3 years.

  • Rs 5 per ticket sold

  • 12.5% of F&B Net Margin

  • 12.5% of Net Margin from Vakrangee Kendra

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Lease Agreement

  • Fixed payout of Rs. 62,500 per month

  • Minimum 15 years (lock-in period 7 years).

  • 5% escalation for the 8th year and at the end of every 3 years after that.

RESPONSIBILITIES OF A VLE

  1. Depending on the chosen plan offering (Basic, Deluxe or Super Deluxe), the VLE Provides the requisite land in a viable location on a minimum 20-year lease.

  2. Constructs the warm shell as per specification.

  3. Investment 

    • Basic: Rs 10L investment + loan of Rs. 30L

    • Deluxe: Rs 12.5L investment + loan of Rs 35L

    • Super Deluxe: Rs 15L investment + loan of Rs 40.5L

  4. Manages the EUC.

  5. Provides manpower for theatre management 

  6. Supplies all electricity and water to the theatre.

  7. Responsible for entire maintenance and upkeep of the EUC except for maintenance inside NOVA Cinemaz theatre.