PVR INOX takes movies to smaller towns with low-cost screens, plans 300-city expansion

PVR INOX plans to expand its footprint beyond India’s biggest cities by launching its new low-cost Smart Screens format across nearly 300 emerging towns, as the country’s largest multiplex operator looks to tap rising demand for cinema in Tier 2 and Tier 3 markets.

The company expects ticket prices at Smart Screens to be around 30% to 35% lower than those at a regular PVR multiplex, with an investment of about ₹1.9 crore per screen.

Speaking to CNBC-TV18, PVR INOX Managing Director Ajay Bijli said the company has identified around 300 cities where the concept can be introduced, with Muzaffarpur set to be the first location.

“When you look at our screen portfolio of 1,780 screens, only 3% to 4% of our screens are in what I call growth towns, which are still emerging,” Bijli said.

According to Bijli, the lower ticket prices are made possible by redesigning the economics of the format without compromising the movie-going experience.

“A lot has happened behind the scenes. We’ve tweaked the engine a little bit. There is no compromise, and the consumer will not feel any difference,” he said. “Of course, we don’t have recliners or formats like IMAX and 4DX, but it’s still a very good, high-quality experience.”

Bijli said each Smart Screen requires an investment of about ₹1.9 crore per screen, substantially lower than a conventional multiplex, enabling the company to expand economically into underserved markets.

He said the company had been encouraged by rising consumer spending in smaller towns.”We are surprised by the consumerism happening there. The appetite to watch movies is there anywhere in the country, in every nook and cranny,” he said. “Our main growth engine remains the big-city rollout that we’re doing, but this segment should not be ignored.”

Addressing concerns over whether smaller towns would receive a steady supply of new film releases, Bijli said distributors have historically supported the company’s expansion into new markets.

“There won’t be any content supply issues in these places,” he said, adding that distributors recognise the latent demand created whenever a new multiplex opens in an underserved market.

The Smart Screens format is PVR INOX’s latest initiative to expand beyond metropolitan markets through a lower-cost, hyper-efficient cinema model tailored for Tier 2 and Tier 3 towns. While the company will continue expanding premium multiplexes in major cities, the new format is aimed at locations with limited organised cinema infrastructure.

Watch accompanying video for full conversation.