Multiplexes are in run to add 1,000 more screens in next 2 years

PVR-Inox and other Top multiplexes are aggressively expanding their screen portfolio, with screen additions expected to see 30-60 percent growth in the next two years compared to pre-pandemic levels. PVR-Inox and Cinepolis have been focussed on superplexes — properties with 10 or more screens in different premium formats.

PVR-Inox launched its first superplex in Lucknow, which started operations in February this year. Next, it will launch superplexes in Pune and Bengaluru. Last month, Cinepolis too launched a superplex in Delhi. The exhibitor aims to add 200 screens in the next three years.

Multiplex operators are expected to have a capex outlay of Rs 800-900 crore for new screen additions, said Naveen Vaidyanathan, Director, CRISIL Ratings.

A key highlight of the PVR-Inox merger was the screen expansion plans of the merged entity, which involved doubling the combined pipeline to 2,000 screens, to be added over the next seven years with an investment of Rs 4,000 crore.

Mukta A2 Cinemas, also multiplex player, plans to add 50 screens in FY23-24, with a total investment of Rs 38 crore.

Along with smaller markets, Vaidyanathan said that with some premium multiplexes succeeding in metros, more are being planned in those markets.

“Screen growth will be higher than pre-Covid levels, the reason being that there was no expansion due to Covid in 2020 and 2021. In 22-23 too, fewer screens were launched compared to pre-pandemic levels. As cash flows ease and lenders start trusting the industry once again, companies will be able to start rolling out screens that are in the pipeline,” said Amit Sharma, CEO of Miraj Cinemas.

Sharma further added that screen additions are directly proportional to the supply of real estate, and the maximum supply is in NCR, Lucknow, and Mohali. “Down south, it is Hyderabad and Bengaluru which have a lot of real estate. We don’t see too many screens coming up in saturated markets like Mumbai and Pune.”

He added that there are many cinemas that are ready for fit-outs, which refers to refurbishing an existing theatre.Sharma pointed out that screen growth in India will come entirely from the multiplex segment. “I don’t see any new single screens popping up. They can only be refurbished.”