Sega to open entertainment centers in India

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BOMBAY -- Japanese marketers Sega Enterprises and Mitsubishi Corp. have tied with Bombay-based Mahindra Holidays and Resorts to open Sega branded family entertainment centers in India.

Sega and Mitsubishi each will hold 20% in Mahindra Sega Entertainment and the Indian partner will own the remaining 60%. Mahindra Sega, based in Bombay, will be capitalized at $1m. The partners intend to open two Sega entertainment centers in Madras by year end, followed by Bombay, New Delhi, Calcutta and Bangalore.

"Television and movies have continued to remain the major sources of entertainment in India, leaving scope for new types of entertainment facilities such as family fun centers wide open," Nobuo Nakanishi, director at Sega Enterprises' Overseas Amusement Business Division, told reporters in Bombay. "India will be our second-largest market, next only to China in this region, and we will aggressively open new stores."

The alliance is aiming for 30 stores, each costing $1.35m to develop, and sales of $17.8m in two years. It will target urban middle and upper-middle class customers with arcade games, coin-operated video games and home video products. The fees for games in stores will range from 27 cents to 82 cents. Future plans include distribution of video games and an electronics amusement theme park.

Mahindra Resort and Holidays is the city-targeted leisure spin-off of Bombay-based Mahindra & Mahindra, India's largest utility vehicle maker with its Jeep prototype and also equal partner with Ford Motor Co. in a passenger car joint venture for the Escort and Fiesta models.

Copyright September 1997, Crain Communications Inc.

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