Mumbai: Mexico-born cinema chain Cinépolis’ Indian arm is looking to double its capex to Rs. 280 crores in 2024 as it looks to add 80 screens a year to achieve its eventual goal of having 1,000 screens in the country, CEO Devang Sampat told ET.

Cinépolis, which entered India in 2009, has 432 screens in the country and has been adding 40–50 screens per year. On average, the company spends Rs. 3.5 crore on launching a new screen.

“Apart from the 432 screens that we have in the country, we have signed another 600 screens that will become operational at various stages,” Sampat said, noting that the cinema exhibition industry’s fate is very closely linked to the mall development activity in the country.

“For us, capex is not a constraint, but the infrastructure is. When we entered India in 2009, our original plan was to open 1,000 screens in 10 years,” he added. Sampat stated that the pace of mall development that has been sluggish hampered the move in the country.

PVR Inox is the biggest multiplex operator in the country, with 1,702 screens. The Cinépolis India CEO said the company’s growth in 2023 will be driven by record footfalls and an increase in the average ticket price (ATP). The company’s regulatory filings show that its operating revenue stood at Rs. 367 crores in FY22.

The company earns 55% of its revenue from ticketing, followed by food and beverage (F&B), which contributes 35%, with advertising contributing the remaining 10%.

"The cinema exhibition business will remain stable because people don’t go to a multiplex just for a movie but for the experience of watching a movie together with family and friends,” he noted.

He also believes there is huge potential to grow the F&B revenue stream since multiplexes get enough footfalls every year.

“We don't have to hunt for customers, unlike quick service restaurants (QSRs), because we have 4 crore people coming to our cinemas every year. We just have to offer them what they want,” he said.