Even as uncertainty looms large due to Covid-19 outbreak, cinema halls make salary provisions for employees
Sonil Dedhia (HINDUSTAN TIMES; March 22, 2020)

The entertainment industry is reeling under the impact of Covid-19 outbreak, like other businesses. Cinema halls have been shut till March 31 in most states and film shoots have been halted. Even the release of big-budget films, such as Sooryavanshi and ’83, has been postponed.

Amid the crisis, cinema owners are trying to ensure that there’s a salary provision in place for employees. Manoj Desai, executive director, G-7 multiplex and Maratha Mandir, Mumbai, informs that the non-operation of theatres won’t result in the slashing of the salaries. “The shutdown is a huge blow. We have a staff of around 100 people across our two properties. We will give them the entire salaries till March 31. If the government continues the shutdown, we will take a call accordingly,” Desai says.

A similar policy is being followed by Miraj Cinemas. Bhuvanesh Mendiratta, associate vice president, operations and development, of the cinemas, says, “The situation is uncertain. We don’t know for how long the crisis will last. We are dispersing a 100% payment to our employees till March 31. What happens after that depends on how critical the situation is.”

At Carnival Cinemas, Mohan Umrotkar, CEO, informs that the senior level management has taken a salary cut. “The board members and those at the CXO level have taken a voluntary cut of 25% till the operation is shut,” says Umrotkar, adding that the other employees have been asked to exhaust their paid leaves. Umrotkar, however, adds that the government provides some relief in terms of concession or exemption, failing which the entire industry will have to take drastic measures. “There are fixed costs like rent, electricity etc involved. We are hoping the government can provide some respite by reduction in fixed cost,” he says.

Anish Jain, head of finance and accounts at Raj Mandir, Jaipur, says, “We shut down our theatre on March 14, as directed by the Rajasthan government. Every employee will be given their salary. We will stick to this till March 31.”

A spokesperson from SVF Cinemas, West Bengal, says, “All employees across all our verticals will be paid full salary till March 31. We have planned to pay employees in advance, in case there is a lock down.”

Trade analyst Amod Mehra says that theatres across the country will face a severe financial blow. “I don’t think we have ever witnessed such a shutdown in the history of Indian cinema. Mumbai alone has about 200 screens, which will stay closed till March 31. It’s hard to quantify exactly how much money is at stake. If the closure continues till next month, this would have severe implications including job and salary cuts.”

We reached out to Inox Cinemas who refused to comment on the matter. At the same time there was no response from PVR cinemas till the time of going to press.

With inputs from Titas Chowdhury



Piping hot business no longer

With a daily consumption of over 50,000-60,000 samosas at theatres across Mumbai, the snack is a hot favourite. For the past five decades and three generations, most cinema halls in Mumbai have got their daily supply of samosas from A-1 Samosa, situated in Sion. But now with the shutting down of the cinema halls, A-1 Samosa’s business is suffering badly. A representative from the firm, who doesn’t wish to be named, says, “The business is affected badly. It’s a complete shut down. We are operating at 25% of our capacity. Theatres are going to be shut for at least another 10 days and it might even continue if the situation doesn’t improve.”