PVR INOX to Close 70 Non-Performing Screens, Looks to Monetize Real Estate Assets
Multiplex operator PVR INOX has announced its plans to close 70 non-performing screens in the fiscal year 2025, citing a pursuit of profitable growth. However, the company also intends to add 120 new screens during the same period, with a significant focus on the South Indian market. Additionally, PVR INOX is implementing a capital-light growth strategy, aiming to reduce capex on new screen additions by 25 to 30 percent in the current fiscal year.
Transitioning to a Franchise-Owned, Company-Operated Model
To achieve its growth objectives, PVR INOX is undergoing a fundamental shift in its growth strategy. The company plans to partner with developers, adopting a franchise-owned and company-operated (FOCO) model for investing in new screen capital expenditures. This approach allows PVR INOX to leverage the resources and expertise of trusted partners while minimizing their own capital commitment.
Unlocking Value in Real Estate Assets
In line with its goal of becoming a “net-debt free” company in the future, PVR INOX is also exploring the monetization of non-core real estate assets located in prime locations such as Mumbai, Pune, and Vadodara. By unlocking the value of these assets through potential sales or partnerships, PVR INOX aims to strengthen its financial position and focus its resources on its core business of film exhibition.
Strengthening Presence in Underrepresented Markets
Expanding its reach in underrepresented markets is another significant aspect of PVR INOX’s growth strategy. With around 40 percent of new screens focused on South India, the company aims to penetrate this untapped region. By strategically targeting specific cities and towns in the South, PVR INOX aims to connect with a larger audience and generate sustainable revenue streams.
A Clear Path to Future Success
PVR INOX’s latest annual report highlights several key initiatives that will shape the company’s future growth and success. Through streamlining operations by closing non-performing screens, adopting a franchise-owned and company-operated model, and monetizing real estate assets, PVR INOX aims to become more financially robust and agile.
Furthermore, the expansion into underrepresented markets allows PVR INOX to tap into new audiences and strengthen its competitive position in the industry. With a clear growth strategy and a focus on profitability, PVR INOX is laying a solid foundation for sustained success in the evolving landscape of film exhibition.
