The Hindu Business Line : PVR to invest Rs 400 cr in 250 screens

New Delhi, Nov. 22 Multiplex chain operator PVR Ltd will invest up to Rs 400 crore in setting up 200-250 screens nationwide over the next two to three years.

“We have maintained a one to one debt-equity ratio, and thankfully our theatres have done well and we have enough cash,” said Mr Ajay Bijli, Chairman and MD, PVR, adding that fund raising when required would be a mix of various options.

The company would, however, be raising funds for its four-year-old subsidiary, PVR Pictures, its distribution and production company. Mr Bijli added that the primarily exhibition company was focussed on organic growth. Apart from launching new cinemas, PVR would also be exploring unaddressed catchments within existing cities that it already operates in.

It now has 95 screens across the country and was going to increase its focus in the southern States which had done good business.

Bangalore, said Mr Bijli, has the best performing PVR theatre, recording 2.5 million admissions. Chennai is to see the launch of a PVR soon.

‘Premiere’ brand

Launching its ‘Premiere’ brand at a mall in the Capital today, the company hopes to roll out about 30-40 of these high-end ‘cinema-watching experience providers’ by 2010.

The shows would be priced at Rs 120.

Mr Pramod Arora, President and CEO, PVR, says the category could contribute 15-20 per cent of revenue over the years.

The cinema will try and attract audiences who could shell out at least Rs 600 upward for a ticket to watch movies seated in leather-clad, fully reclining chairs, while a chef cooks up the order from a personalised menu in the ‘Gold Class’ auditoriums.

Shares of the company closed 1.71 per cent up at Rs 198.85 on the Bombay Stock Exchange.