PVR Inox Expands in South, Adopts Asset-Light Model for Growth

15 Apr 2024 , 11:20 AM

PVR Inox, India’s leading multiplex operator, is expanding its presence in the South to enhance operational performance amidst challenges in the cinema industry.

Ajay Bijli, Managing Director of PVR Inox, stated that the South market accounts for 33% of their portfolio, with plans to open 40% of new screens in the region in FY25.

Bengaluru, known for its diverse movie consumption, witnessed the launch of a 14-screen megaplex and a 9-screen property in Kochi, reflecting PVR Inox’s focus on high-performing cities.

Despite expanding in the South, PVR Inox aims to reduce capital expenditure by 30-40% in FY25 and adopt an asset-light model, primarily the franchise-owned company-operated (FOCO) model.

Plans for FY25 include opening 100 new screens, disinvesting in 90 screens, and closing non-performing cinemas, with a focus on deleveraging and improving operational efficiency. PVR Inox plans to liquidate real estate assets in prime locations to reduce debt and is renegotiating rental contracts to lower costs.

CEO Gautam Dutta’s focus is on increasing footfall, sales, and advertising revenue, with occupancy expected to rise to 29-30% in FY25.

The company is piloting an initiative with Zomato in Gurugram, allowing customers to order from the multiplex’s food menu for in-cinema delivery, aiming to enhance the cinema experience.

PVR INOX Ltd, formerly known as PVR Cinemas, is an Indian multiplex chain headquartered in Mumbai. It was created through the merger of PVR Cinemas and INOX Leisure Multiplex. PVR Cinemas played a pivotal role in introducing the multiplex concept to India by opening the first multiplex cinema in 1997 in Saket, New Delhi.

In 2022, PVR Cinemas celebrated 25 years in the industry. As of December 2023, PVR Inox operates 1712 screens across 359 properties in 114 cities spanning India and Sri Lanka.

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