Back to basics: PVR Inox to tap into underserved regions of India with low-cost cinemas for growth

The company is collaborating with developers in territories such as Leh in Ladakh, Machilipatnam in Andhra Pradesh and non-metro towns of West Bengal and south India to open low-cost cinemas with basic facilities such as air-conditioning where tickets would be priced at about ₹150, a senior executive said.

The theatre chain is also trying to expand on its franchise-owned, company-operated model, where it makes a lower investment than the builder or developer but operates the cinema on a revenue-sharing basis instead of paying rentals.

“The endeavour always is to open cinemas in places which don’t have any," Sanjeev Kumar Bijli, executive director of PVR Inox, said in an interview. “We don’t build (properties) ourselves and are dependent on builders for development, which are not always easy to find. These don’t always have to be malls, they can also be small shopping centres. But we are definitely looking at uncharted markets and are very conscious of the fact that there are many unserviced pincodes across India and we are actively looking to open very basic cinemas there."

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These basic cinemas would be unlike the kind in New Delhi or Mumbai, Bijli said, because audiences have different demands—they want simple cinemas that are air-conditioned and hygienic, unlike customers in metros who are also looking for a 360-degree experience with food and ambience.

Last year, PVR Inox opened 75-80 screens and is looking at adding 80-90 screens this year, Bijli said. The franchise-owned, company-operated model currently makes up 20% of its overall portfolio and is expected to go up to 40-50%. The company has launched properties under this model in Raipur and Jabalpur recently.

Screen-dark zones

These are cinemas where the company’s capital contribution is 50% or less while the rest comes from the development partners – mostly builders and mall owners. However, the brand, operations, staff, systems and processes belong to PVR Inox, which operates on a revenue-sharing arrangement with the developer. 

India’s movie screen expansion mostly remains lopsided, slanted deeply towards the National Capital Region, parts of Maharashtra, especially Mumbai, and cities such as Bengaluru that have a tradition of multilingual viewing.

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On the other hand, states including Bihar, Uttar Pradesh, Odisha, Chhattisgarh, Madhya Pradesh and the northeast remain relatively screen dark, squeezing returns on films that do get there and depriving their viewers completely of the rest. 

Further, multiplex chains are often criticised for disproportionately high ticket and F&B rates, which alienate a large chunk of the population. For big films featuring top stars, it is common for even the lowest priced tickets in regular multiplexes to touch ₹450-500.

PVR Inox reported a consolidated net loss of ₹125 crore in Q4 of FY25 versus ₹130 crore in the year-ago period. Revenue from operations in the March-ended quarter stood at ₹1,250 crore, compared with ₹1,256 crore a year earlier.

However, Bijli pointed to an exciting summer line-up with titles such as Mission: Impossible - The Final Reckoning, Housefull 5 and Sitaare Zameen Par besides Raid 2 and Kesari Chapter 2, which have found draw at the box office recently.

“Good films whet your appetite – if you like a film, you wait to go to another. (So, the good thing is) there isn’t a fatigue factor, people aren’t tired of going to the movies," he said.

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