New Delhi: With average ticket prices crossing pre-Coronavirus levels, PVR Inox will invest Rs 700 crore this fiscal to add up to 175 new screens and retrofitting many of the existing ones even as it continues with the exercise of rationalizing certain locations, where business has become unviable.

Ajay Bijli, MD of PVR Inox, the country’s largest multiplex chain, said the company is looking at aggressive expansion as it expects cinema viewing to remain strong with Covid ending and smaller towns and cities becoming attractive destinations. The company closed FY23 with average ticket price of Rs 236 (for merged entity) against Rs 204 (PVR standalone) in pre-Covid FY20.

“PVR Inox is expected to spend cumulatively close to Rs 700 crore in FY24 for adding new screens and retrofitting existing ones with new tech, formats, ambience, among other features. We will also be expanding to certain tier-2 and tier-3 cities, which will include locations such as Rourkela, Bhubaneswar, Dharwad, Cuddalore, Jodhpur, Hubli, and Ajmer,” he told TOI.

PVR and Inox had decided to merge last year as the competing companies pooled in businesses to create synergies in order to tackle challenges arising out of lockdowns and the growing popularity of streaming companies such as Netflix, Amazon and Disney+ Hotstar.

PVR Inox last week announced cumulative numbers for the merged entity for the first time, reporting a net loss of Rs 334 crore in the January-March quarter and revenues of Rs 1,143 crore. The company also said it will be shutting 50 loss-making screens, as the properties had become financially unviable or reached end of lifecycle. It currently operates 1,689 screens across 361 cinemas, and will continue to add more screens in new sites.

Bijli said the synergies will add to the operating profits of the merged entity significantly. “We are targeting to deliver Rs 225 crore of annual recurring ebitda synergies over 12-24 months. Currently more than 75% of our screens are in Metros and tier-1 cities. But we are entering new cities every year and will expand footprint in tier-2 and tier-3 cities, where multiplexes haven’t been experienced till now. ”