PVR Inox bets on ₹175 tickets to win small-town India

India’s largest multiplex chain PVR Inox Ltd. is looking to launch a line of more affordable movie theaters exclusively for smaller towns, with tickets priced under $2 each to attract audiences across previously untapped markets.

The company plans to roll out 300 so-called Smart Cinema halls over the next three years in towns like Muzaffarpur and Barrackpore in eastern India to Hanumangarh in the northwest, Executive Director Sanjeev Kumar Bijli told Bloomberg News in an interview. These will be owned by franchise partners and operated by the company.

“The next wave is going to come from these places,” he said. “People have a propensity to spend and are aspirational; they want the same facility in their own town as well.”


The expansion plan mirrors the company’s effort to diversify its revenue beyond big cities and movies. It also coincides with one of PVR’s strongest runs at the box office in recent years, with a steady pipeline of Bollywood and Hollywood blockbusters. Following the success of Dhurandhar: The Revenge, Project Hail Mary, The Odyssey, and Spider-Man: Brand New Day this year, the chain expects upcoming releases such as Toxic, Bollywood epic Ramayana, and Dune: Part Three to sustain the momentum.

The cinema chain’s shares have gained about 17% this year, outperforming India’s benchmark Nifty 50 Index, which has declined 5.9%.

Tickets at theaters in small towns will cost as much as 175 rupees ($1.8) each, about 40% less than the company’s average price in metros, according to Bijli. Food offerings, limited to popular items such as popcorn and nachos, will be similarly cheaper, he said.

Land, capital expenditure, electricity and manpower costs are lower in these regions, he said.

The company will continue adding about 150 of its regular screens annually over the next three to four years, Bijli said, while piloting photo booths and virtual reality games inside multiplexes to attract moviegoers.

“Recovery in Hollywood collections and a promising content slate across languages bode well” for the chain, brokerage Motilal Oswal Financial Services Ltd.’s research team wrote in a July 26 note. “However, its business remains highly sensitive to occupancy, which is dependent on the quality and consistency of content, a factor largely outside its control.”

To cushion itself against unpredictable box-office earnings, the operator is banking on sports screenings, concert broadcasts, TED Talks, devotional events and even corporate board meetings to boost occupancy during leaner periods. Alternate events generated about 1.2 million admissions last year, a figure Bijli expects to grow by around 10% this year.