PVR Cinemas, which currently operates 570 screens in India, has announced its plans to operate over 1,000 screens in India in an ambitious 5-year expansion plan. Not only will this increase the company’s market penetration, it could also see its revenue shoot up to at least Rs.4,000 crore.
CFO at PVR Cinemas Nitin Sood has been quoted saying, “Our strategy is to increase screen penetration in India. We are about 570 screens and in next four to five years we would double screen count and cross 1,000 screens,” adding that, “Once we get to 1,000 screens, our revenue would be around Rs.3,500 crore to Rs.4,500 crore.”
As far as strategy goes, the company plans to improve its presence in Tier I and Tier II cities, while also increasing penetration in Tier III and Tier IV cities. Sood said, “Today we are in 50 odd cities and our aim would be over the next five years to expand to 90 to 100 cities as we expand to 1,000 screen portfolio.”
In a sector witnessing heavy consolidation, PVR is leaving no stones unturned as it pursues organic and inorganic growth to cover as much of the field as possible. In this regard, Sood says, “The bulk of growth would come from organic growth only as inorganic consolidation possibilities are very small, which are left right now. However, if there is something available on the way from inorganic prospective, we would look on it.” PVR acquired DT Cinemas last year.
Speaking to the point of increasing revenues through F&B counters at its cinema halls, PVR plans to increase the ratio of their income from F&B to 30% from the current 26%. Sood said, “Today, a customer spends 40% of its ticket price on F&B and our aim would be 5 years, it should go up to 50%.”