Ambani vs. Ambani showdown at the multiplex

It was an open secret that Mukesh Ambani had ambitions and plans to challenge his younger brother Anil Ambani in the multiplex space. But it came as a bit of a bombshell that the person who might implement the ambition is Manmohan Shetty, the man who set up Adlabs Cinemas before it was acquired by Anil's Reliance ADAG. From the Economic Times:

Manmohan Shetty, the founder of Adlabs Films, is likely to team up with Mukesh Ambani. The Reliance Industries (RIL) chairman is believed to be in negotiations with Mr Shetty to get him on board to shape and run a planned country-wide multiplex operation.

The RIL group is looking at about 500 screens across the country, according to persons familiar with the matter. Mr Shetty was, till not very long ago, a key member of ADAG’s entertainment business.

As part of its retail entertainment plan, the RIL Group is simultaneously in advanced talks with Yashraj Films (YRF) to ink an arrangement whereby all YRF films will be released in the planned chain. The partnership is also being cemented across other areas, all of which are part of the RIL’s Group foray into the entertainment business.

The group is in the process of setting up the back end for the proposed foray, largely using fibre optic linkages. According to sources, YRF and Mr Shetty are jointly forming a content company, which will be the primary vendor for the RIL Group’s entertainment venture.

If RIL is considering fibre optic linkage then they are considering digital cinema (again, no surprise, as we knew this from our spies), but this is logical for anyone looking to enter cinema at this late stage. Mr Shetty denies the partnership as does a Yash Raj spokesperson:

Mr Shetty denied the development stating, “There have been no talks or discussions between either Mukesh Ambani or YRF with me. No such deal/deals have been signed by me.”

A highly-placed source within the ADAG group said Mr Shetty was still in the last stages of his exit from ADAG and might not be comfortable talking of future plans.

Sanjeev Kohli, director and CEO Yash Raj Films, also denied being part of the RIL Group’s entertainment plans. “YRF has not signed any deal and we are not aware of developments in the areas that have been mentioned. YRF will certainly share with the media their future plans when they take concrete shape.”

It sure keep life interesting out here in India and we will see who will drink who's multiplex milkshake in the end.

UPDATE 17/05/08: Mr Shetty has directly denied that he is in any discussions with Mukesh. If not Shetty then let's see who he will put in charge of such a major effort.