Culture of watching movies is stronger in South: PVR Inox MD Ajay Bijli

Culture of watching movies is stronger in South, says PVR Inox MD

PVR Inox, which just opened the first multiplex in Ladakh, is having a great year. It is India’s largest theatre chain with 1,774 screens and ₹5,875 crore in 2024-25 (FY25) revenues. Not surprisingly, it dominates the ₹20,000 crore movie business in the country. Vanita Kohli-Khandekar spoke to Managing Director Ajay Bijli on how the market for cinema could expand, and where PVR Inox is on that journey. Edited excerpts: 

What has the year been like? 

It has been quite fantastic. There were hardly any blockbusters. It was largely smaller movies, and yet we all did very well. Till the end of October/November this year, 29 films have done more than ₹100 crore at the box office (BO). We got 78.5 million people in the cinemas in the first half of FY26. 

Do you see the market is expanding in value (BO revenue) and volume (number of tickets sold)? 

If it goes like this, it will be even bigger than pre-pandemic years. The year will end with ₹13,000 crore or something (Ormax data: The Indian box office has been stuck at ₹12,000 crore for some years now). 

The market is expanding also because newer screens are opening in smaller towns as well. In FY26, we will open about 100 screens. Of these, about 20-25 are in Tier-2 and Tier-3 cities. We will also be doing a pilot for our “Smart Screen” (working name) strategy early next year. These would be constructed at a lower capex (capital expenditure) of ₹2 crore per screen (against the usual ₹3.5 crore or more). It will have lower ticket as well as F&B (food and beverage) prices. These cinemas will drive further growth. The learnings from them should allow us to open an additional 50-100 screens every year under the new aspirational and affordable screen expansion strategy.

 

What is the criteria for deciding on these “affordable” 100 screens?

 

We went very deep into the unserved post codes, and realised there is no screen density there. But there are other boxes to be ticked — is there a minimum population base? Is there a desire to go out and watch movies? Is content diversity there, which will ensure a threshold occupancy level? We're doing a deep dive into everything. We want to go with a multiplex model – two/three/four screens. Maybe the total capacity can be 600-700 divided between four screens. It has to have a destination factor, location has to be good. It has to offer something beyond cinema, so that it stands the test of time. Even at two crores a screen, it is an investment — you need an ROI (return on investment).

 

You're doing all this ground up or leasing/licensing older cinemas?

 

We are not doing anything from scratch, not buying or leasing land. Where there are cinemas that meet our litmus test, we are converting (them) into a three- or four-plex. The first one is in Nawada, Bihar. There is a very tiny mall there with three screens. We are just starting its fitout.

 

Which are the states or areas that you have identified?

 

There is a gap everywhere. We have been in this business 36 years now. It's not that difficult to create the infrastructure, the hardware. What is important is the software. The South is the most interesting because of the diversity of content. You have Tamil, Telugu, Malayalam, Kannada, English and Hindi films playing. That makes you feel secure because the flow will be very consistent. If you go to Punjab, for example, it is only Punjabi content. Hindi is also about the blockbuster type of movies.

 

Is the South becoming a bigger of force on expansion, growth, and top line for PVR?

 

This year, 27 per cent of the screens we opened are in the South. We are opening an eleven-screen complex at Lake Shore Mall in Hyderabad next month. We just opened another five-screen in Hyderabad, in Bangalore. We're opening in Chennai. The South is definitely a very good market because of the diversity of content and the consumers’ propensity to go to the movies more frequently than in any other region. (According to Ormax data, audiences in the five southern states visit the theatre anywhere from 5-9 times a year. Hindi audiences watch a film thrice a year)

 

Are the ticket prices in the South lower since it is dominated by single screens and there is price control?

 

Our average ticket price is ₹259 throughout the country, including the controlled state, which is Tamil Nadu. If you add the formats (IMAX/4DX, Insignia, etc.) and the recliners, it is pretty much the same. More than the ticket price, it is the quantity and variety of movies, and the culture of watching movies in the South, which is stronger.

 

The craze for cinema is high within Hindi audiences too. Why is frequency lower?

 

In urban centres like Delhi, Bombay, and Pune, the affluence is more, English-speaking is more, and movie-going frequency is good. But if you go to just Hindi belts, then it is low. It is chicken and egg. In some places, screen density is there, in others it isn’t.

 

There is perpetual chatter about the threat to the movie business. How is PVR placed? Your big milestones for the year?

 

First, am very happy with the way we managed our cash. We have got free cash flow and have brought our debt down dramatically.

 

Second, nowhere in the world has anybody done the FOCO (franchisee owned company operated) model in the cinema exhibition business where money is spent by the developer. It is common in hotels, hospitality or even in retail chains like Titan or Kalyan Jewellers. We were able to do that in cinemas. We have been sweating the asset for a long time. This year we want to test whether we can sweat the brand. Are there takers in small/big towns who say “okay, I will spend the money and let PVR manage”? (PVR Inox currently has 67 screens on the FOCO model, with 44 more in the pipeline)

 

The chatter stops when people look at the balance sheet. My first stakeholder is my customer – 78.5 million of them have come. My second stakeholder is the film fraternity, which has come back to the big screen. My third stakeholder is the developer. At least 100-odd malls are coming and they are still allocating space for cinemas.

 

The last stakeholder is the financial community since we are a listed company. They are looking at free cash flows, debt reduction, Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins of the second quarter, and half-year results.

 

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