PVR Inox to add 200 screens every year; expects double-digit growth in top-line in FY24

Lucknow: Leading multiplex operator PVR is working on "getting economies of scale" after the merger of rival Inox Leisure and expects a double-digit growth in its top-line in FY24, said managing director Ajay Bijli.

PVR is working on synergies on revenue from ticket prices, food & beverage, advertising, and operating costs, he said, adding that the merged entity has plans to add 200 screens every year, and tap the potential of smaller markets.

"If you look property by property, in certain places there are disparities in the ticket price. There are opportunities for improving programming, and scheduling the peak-hour ticket pricing," Bijli told PTI.

Besides, some of the properties would also have to be upgraded, he said.

"We both are operating in the same environment and look at the demographics in a similar way. But whatever tweaking needs to be done for both brands to give a consistent experience, we are working on it," Bijli added.

When asked about the growth in terms of the top-line of the merged entity in FY24, Bijli said he expects double-digit growth.

"In calendar year 2019 which was normal year of operations pre-pandemic, PVR and Inox recorded a combined turnover of about Rs 5,600 crore. We are adding about 200 screens every year with a capex of about Rs 700-750 crore," he said.

A merger of PVR and Inox Leisure is effective from February 06, 2023.

"We felt that coming together would make the balance sheet stronger and this business is all about scale... I truly believed that if we has not come together, there would have been a problem in growth, and we will grow together," he said.

Like in the F&B space, Inox was serving vegetarian food only and post-merger it will also have a non-vegetarian menu, which can take the ATP (Average Ticket Price)) up.

"Advertising is another area, where the minutes on the screen, which we were charging can be taken up," he said.

Besides, Bijli also plans to share some benefits with the consumer from the economies of scale after the merger.

"Not everywhere it will be value-driven, it would be volume driven as well. Where ever we feel that ATP has to come down, it's fine for us," he said, adding, "the ATP will come down at several places." According to Bijli, he is more concerned with film income rather than ticket price multiplied by the number of people.

"Our focus is more on getting more and more people inside, rather than looking at ticket price," he said.

Regarding the operation cost, Bijli said the joint entity PVR Inox would have 23,000 people and have operations in 113 cities.

Post-merger Inox Leisure would cease to exist and Bijli would head the merged entity PVR Inox as managing director.

After the merger with Inox, PVR on Wednesday announced the launch of an 11-screen 'superplex' at Lucknow at Lulu Mall, the largest shopping mall in the city.

This will have all formats, including the multi-sensory 4DX format, premium large screen format P, two auditoriums of PVR's luxury format, LUXE along with 7 auditoriums with last-row recliners.

After this, PVR's foothold in Uttar Pradesh with 158 screens in 32 properties consolidates the merged entity's presence in north India with 438 screens in 100 properties.

In the current fiscal, the merged entity has opened 143 screens across 26 properties in 21 cities.