PVR-INOX is the biggest cinema/multiplex chain in India. Formed as a merger between PVR Cinemas and INOX Leisure Multiplex, it pioneered the multiplex revolution in India. As of now, the chain has about 1712 screens spanning around 114 cities of India and Sri Lanka under it.
In the financial year 2024-25, the firm is losing its grip and experiencing a heavy loss. Even in the last five years, the firm has not seen any substantial growth in its assets. The net worth remains similar. A solution for this emerges in the form of more screens to be placed to increase income, and hence make a growth for the company.
More screens will obviously result in people coming and watching films in the new theatre. It will bring a substantial income. But will the income be enough to create growth for the company?
If the firm places more screens in the cities, it is already tapping, it will result in nothing. People are already using their screens in the city; addition of screens will just distribute the audience. Also, in such cases, it is not sure even if the cost of placing a screen will be recovered in a few years. With the company experiencing a loss, it will be quite risky.
Instead, the firm should place importance on touching new spaces. As of now, the firm has screens placed in 114 cities. But there are many major cities devoid of their service. Cities with Industries, cities with educational institutions and cities with better per-capita income should be selected to place new screens. To tap a new potential market will turn much more profitable for the firm.
The second thing is, the firm should look over to price cutting. Especially in the case of snacks and beverages. The INOX passport is a good initiative that allows more sales for the firm at a low cost. Similar things should be encouraged. Overpricing is a big reason people avoid INOX screens. If that field is tapped, sales will grow much higher. In a country like India, pricing is a very sensitive aspect in a business.
Hence, only increasing the screens won’t mean much for the firm. More screens, but in the right places should be placed. New cities should be explored and the psychology of the audience should be captured to ensure best service for them.
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