Mumbai, India – With ticket prices surpassing pre-Covid levels, leading multiplex chains PVR and Inox have announced their decision to invest a significant amount of Rs 700 crore in the current fiscal year. This investment will facilitate the addition of up to 175 new screens and the retrofitting of existing ones with state-of-the-art technology and enhanced amenities. The expansion comes as part of the companies’ strategy to optimize their presence in the entertainment industry, while also rationalizing certain locations where business viability has been impacted. Ajay Bijli, Managing Director of Inox, the country’s largest multiplex chain, expressed optimism about the future, citing the continued strength of cinema viewing as the Covid-19 pandemic subsides and the growing allure of smaller towns and cities.
The closure of the financial year 2023 saw cinemas achieving an average ticket price of Rs 236 for the merged entity, surpassing the pre-Covid FY20 level of Rs 204 for cinema standalone. Building on this positive momentum, the company is preparing to invest around Rs 700 crore in FY24, targeting the expansion of their screen count and the modernization of existing facilities with cutting-edge technology, innovative formats, and improved ambience, among other features. In addition to enhancing the cinema experience, PVR Inox aims to tap into the potential of tier-2 and -3 cities, identifying locations such as Rourkela, Bhubaneswar, Dharwad, Cuddalore, Jodhpur, Hubli, and Ajmer for its expansion plans.
Ajay Bijli stated, “PVR Inox is expected to allocate approximately Rs 700 crore in FY24 for the addition of new screens and the retrofitting of existing ones, incorporating new technology, formats, ambience, and other features. We are also keen on expanding into certain tier-2 and -3 cities, as we anticipate their increasing attractiveness as cinema destinations.”
The decision to invest in expanding their screen network and upgrading existing theaters reflects the industry’s confidence in the long-term potential of cinema viewing. Despite the challenges posed by the pandemic, cinema remains a favored entertainment choice for many, and PVR Inox aims to capitalize on this trend. By investing in new screens and enhancing the overall cinematic experience, the multiplex chains are positioning themselves to cater to the evolving demands and preferences of the audience.
The addition of 175 new screens will not only provide more options for moviegoers but also contribute to the growth and development of the film industry. As the digital transformation continues to reshape the entertainment landscape, PVR Inox’s strategic investments align with the evolving expectations of consumers. The focus on tier-2 and -3 cities further underscores the potential for growth in these untapped markets, offering movie enthusiasts in these regions access to high-quality cinema experiences.
As PVR Inox embarks on its expansion journey, the companies will simultaneously evaluate and rationalize certain locations where business viability has been adversely affected. This proactive approach demonstrates a commitment to optimizing operational efficiency and ensuring sustainable growth in the long run.
The investment of Rs 700 crore in FY24 by PVR Inox underscores their strong belief in the revival of the cinema industry. With a vision to provide world-class cinema experiences to audiences across the country, the multiplex chains are taking steps to reinforce their market leadership and capitalize on emerging opportunities. The expansion plans and retrofitting initiatives are poised to shape the future of the cinema industry, catering to the growing appetite for entertainment and delighting moviegoers with immersive cinematic experiences.
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