PVR to focus on ‘nano’ cinemas for small towns

Priyanka Pani Mumbai | Updated on March 12, 2018

Multiplex chain PVR plans to take the experience of viewing cinema to smaller towns through ‘nano’ cinemas. Launched as PVR Talkies, these ‘nano’ multiplexes will have an average area of 50-60 sq ft, much less than the usual area of 30,000-40,000 sq ft area.

Such theatres are also likely to do well in markets such as Tamil Nadu, where there is a cap on ticket prices in some towns.  

Ajay Bijli, owner of the country’s largest multiplex chain, said that PVR has already experimented with such small format theatres in places such as Nanded, Aurangabad and Latur in Maharashtra last year. It plans to open about 100 screens by end of 2014.

“Multiplexes are still an urban concept, but the appetite to watch movies is spread across India. However, with difficult regulatory environment it is difficult to enter these small towns with bigger screens as there are no malls,” he added.

For this, the company has tied up with several developers keeping in mind the real estate cost, economies of scale, ticket sales and higher food and beverages income.

Bijli, who has recently completed the acquisition of another leading player Cinemax, for Rs 543 crore, further said that at a combined level PVR has strengthened its position with 351 screens in 85 cinemas across 16 States.

It plans to open 75 theatres this year, across all its formats. In the next 3-5 years, it plans to set up 500 screens by 2015, which includes the PVR and Cinemax pipeline of projects. It plans to expand to 40 cities from 20 at present.

On the integration of Cinemax business, Bijli said that the company is awaiting the market regulator SEBI’s guidelines. . PVR now owns 93 per cent of the BSE-listed Cinemax.

On more acquisitions, Bijli said that he is busy with this acquisition and is expecting consolidated revenues of Rs 1,200-1,400 crore at the end of this fiscal. PVR’s revenues in fiscal 2012 stood at Rs 470 crore.

Published on March 25, 2013

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