PVR Inox, the largest multiplex chain in India, plans to invest Rs 700 crore(84 Million US Dollars) in the fiscal year 2024.
This investment will be utilized to add approximately 175 new screens and retrofit many existing ones.
Despite the need for rationalization in certain locations where the business has become unviable, PVR Inox remains optimistic about the future of cinema viewing.
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Ajay Bijli, the Managing Director of PVR Inox, expressed confidence in the post-pandemic recovery and highlighted the increasing appeal of smaller towns and cities as attractive destinations for cinema.
In the recently concluded fiscal year 2023, PVR Inox achieved an average ticket price of Rs 236, surpassing the pre-Covid level of Rs 204 in FY20.
Bijli revealed the company’s investment in FY24 will focus on incorporating new technologies, formats, and ambiance into both new and existing screens.
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PVR Inox also plans to expand its presence in tier-2 and tier-3 cities such as Rourkela, Bhubaneswar, Dharwad, Cuddalore, Jodhpur, Hubli, and Ajmer.
The merger of PVR and Inox, which took place last year, aimed to leverage synergies and address challenges arising from lockdowns and the rising popularity of streaming platforms like Netflix, Amazon, and Disney Hotstar.
PVR Inox recently announced its first combined financial results, reporting a net loss of Rs 334 crore(36 Million US Dollars) in the January-March quarter with revenues amounting to Rs 1,143 crore(123 million US Dollars).
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As part of its optimization strategy, the company intends to close 50 loss-making screens that are either financially unviable or at the end of their lifecycle.
With 1,689 screens across 361 cinemas, PVR Inox will continue expanding its footprint by adding more screens in new locations.
Bijli expects the synergies resulting from the merger to significantly contribute to the operating profits of the combined entity.
The company aims to achieve annual recurring EBITDA synergies of Rs 225 crore(24.29 Million US Dollars) over the next 12-24 months.
While currently focused on metros and tier-1 cities, PVR Inox plans to penetrate untapped markets in tier-2 and tier-3 cities, introducing multiplex experiences to new audiences.
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