Showing posts with label Sanjeev Bijli interview. Show all posts
Showing posts with label Sanjeev Bijli interview. Show all posts
Real challenge facing the multiplexes today isn’t pricing, but consumers' time, says PVR Inox's Sanjeev Bijli
8:33 AM
Javed Farooqui (THE ECONOMIC TIMES; July 7, 2025)
The real challenge facing the multiplex industry today isn’t pricing, but time, said Sanjeev Bijli, Executive Director of PVR Inox. With a growing number of entertainment options competing for consumer attention, from streaming platforms to mobile content, audiences are more selective about where and how they spend their leisure hours.
For multiplex operators, the competition is no longer just about ticket sales but about capturing a share of limited time in an increasingly crowded media landscape.
Bijli sees this shift as central to how the company is evolving. As India’s largest cinema chain with 1700 screens gears up to open 100 new screens in FY26, including a significant push in South India, Bijli outlines a strategy focused on regional expansion, experience-led engagement, and adapting to changing consumption patterns.
"The real challenge isn’t pricing, it’s time. Today, consumers have more entertainment options than ever. We’re competing not just for their money, but for their time," said Bijli.
On the perception that high ticket prices deter moviegoers, Bijli responded, “This argument comes up often, but I don’t think pricing is a deterrent. Our average ticket price is around Rs 250 to 260, which is very reasonable for the experience we offer. Compared to global pricing, $10 or more in the US, we’re very affordable at around $3.”
“If price were a real issue, films like Chhaava, Mission: Impossible – The Final Reckoning, Avatar: The Way Of Water, Pushpa 2 – The Rule, and Kalki 2898 AD wouldn’t become blockbusters. People wouldn’t turn up and make these Rs 500 to 600 crore hits. It’s all about content. If the content resonates, as it did with Stree 2, Bhool Bhulaiyaa 3, Singham Again, and others, audiences will come regardless of price.”
For FY26, PVR INOX is planning a total investment of around Rs 300 crore. “Our capex on new properties this year will be just over Rs 200 crore, with an additional Rs 100 crore allocated for renovations and investments in IT and technology. Continuous upgrades are essential for operating a large national circuit like ours,” Bijli said.
Of the 100 new screens planned for FY26, 40% will be in South India, particularly Hyderabad and Bangalore, as the region continues to drive significant growth for PVR INOX.
“We’re opening a four-screen cinema at SMR Vinay Mall in Hyderabad, taking our total to 24 screens opened this year,” said Bijli. “We're on track to meet our target of adding 100 screens in FY26. Of these, 40 will be in South India, particularly Hyderabad and Bangalore, which accounts for about 40% of our total expansion. So, the South continues to contribute significantly to our growth.”
Explaining the momentum in the southern market, he said, “The South is rapidly catching up in terms of mall development. Earlier, regions like the North and West, Delhi, Mumbai, and Pune were ahead, and the South was a few years behind. But now, the South has caught up.”
“Developers like Inorbit, Prestige, and Lake Shore, who’ve been long-standing partners of ours, are building high-quality malls, and we’re their preferred cinema partner. These strong relationships and the pace of development are driving our expansion in the region.”
On whether this aggressive expansion risks skewing the balance between screen count and revenue contribution, Bijli said that is already the case. "Currently, South India contributes about 40% of our screen count. And it’s not just a skew in screens, revenues are also higher in the South than in any other region.”
“So, it makes sense to continue expanding there, not indiscriminately, but in specific catchments where there’s demand. These are the markets we’re focusing on, not just in the South, but across the country. That said, the South remains a priority because of strong developments, untapped markets, and a consistent appetite for cinema.”
Contrary to the perception that Hindi-speaking markets are lagging, Bijli offered a more optimistic view. “We’ve had a good first quarter (Q1 FY26). Films like Sitaare Zameen Par and Raid 2 in May performed very well. Housefull 5 also delivered strong numbers. Even Maa, the horror film starring Kajol, has done well. Bhool Chuk Maaf performed strongly toward the end of May. So, we've seen solid success in the Hindi belt too.”
Looking at year-on-year trends, Bijli said, “We’ve done better. About 33.5 million people visited our cinemas in Q1 this year, compared to 30 million last year. That’s a healthy increase of around 10 to 11%.”
He emphasized that a quality experience is central to drawing audiences. “For us, everything starts with the product. If the product is strong, people will come. That means ensuring excellent sound, projection, technology, and seat comfort. Then comes food and beverage quality, customer service, air conditioning, all of which contribute to a smooth, pleasant experience. If guests spend three hours with us, we want it to be completely frictionless and enjoyable, so they want to return.”
To supplement this, PVR INOX has stepped up marketing efforts. “Our Blockbuster Tuesday offer, Rs 99 tickets, has doubled Tuesday admissions from 2 lakh to 4.5 lakh. We have app download offers with Rs 100 discounts, bottomless F&B refills on Fridays, and more. These are just a few examples of the creative campaigns our marketing team rolls out to drive footfalls.”
With half of its new screens to be developed under the FOCO model, Bijli sees this as a strategic adaptation. “About 50% of them will follow the FOCO model. We’re fortunate to have developer partners who believe in our brand and are excited to work with us under this structure.”
He dismissed the idea that this shift signals the decline of the traditional multiplex model. “I don’t agree. While there has been some change in consumer behaviour, it’s not a paradigm shift. In FY25, we had 130 million visitors to our cinemas, a number that clearly shows people are still coming out for the big screen experience.”
“Yes, there’s been a slight dip, maybe 10%, and we’re adapting to that. One way is by exploring models like FOCO, where we share capital expenditure with developers.”
Highlighting the role of multiplexes in driving traffic to malls, he added, “Multiplexes are often located on the top floors of malls and act as major footfall drivers. When a big film releases, like Chhaava or Sitaare Zameen Par, the entire mall benefits. Restaurants, cafes, and retail all see a bump.”
“Developers recognize this value, which is why many are willing to contribute to the multiplex CapEx. It’s not a new concept. This model has been widely used in the West for years. Even in India, brands like McDonald’s have followed this approach, often relying on developer-funded CapEx. We’re simply applying similar principles to adapt to the evolving market.”
PVR Inox derisking by making costs variable-Sanjeev Bijli
2:23 PM
PVR exec director Sanjeev Bijli says making cost structure flexible will ensure profitability won’t take a hit
Ratna Bhushan (THE ECONOMIC TIMES; July 7, 2024)
PVR Inox is derisking the multiplex business by changing cost structures "from fixed to as variable as possible" to ensure that profitability is not hit at the country's largest multiplex chain even if a film doesn't do well, executive director Sanjeev Bijli said.
"We are looking at more revenue share, low rental deals with developers, rationalization of manpower costs, making our structures very lean, so margins can improve," Bijli told ET's The Morning Brief podcast.
The chain is shutting down 80-90 non-performing screens, and will set up 10 food courts in this financial year through its joint venture partner Devyani International, which operates KFC and Pizza Hut, to maximize pre-ticketing F&B sales, Bijli said.
"We are also really focused on reducing debt this year, by judiciously deploying capital to new projects only and having extra cash to reduce debt levels," he said. Some of the measures include pushing revenues through ticket pricing optimization, food and beverage sales, and segmentation and hyper-segmenting content to get more people in multiplexes, he said.
Measures to derisk the Friday-to-Friday release dependency also include screening live cricket, bulk ticket pricing, F&B promotions and non-traditional content such as concerts and conferences, he said.
PVR Inox, which operates 1,757 screens, has shut about 70 screens and going forward, will shutter 80-90 more screens, which the multiplex sees as non-performing assets.
"Half of the screens came from PVR; the other half came from Inox. We realized these were assets that were giving negative EBITDA and had come to an end of their product life cycles, also in terms of the malls they were in," he said. "It's then difficult to pull audiences to an empty mall, just for cinema watching, because it has to work together. The whole destination factor has to come together and work together," Bijli said.
At the same time, the chain plans to open 80-100 new screens this year. "We are committed to opening screens at good locations, where the propensity to spend and watch movies is high," he added.
Nuvama Institutional Equities wrote in a July 1 report that with its primary focus on the movie exhibition business, the combined entity of PVR Inox continues to ramp up margin-accretive segments such as F&B and ad revenues, which it noted would drive EBITDA expansion for the business.
"However, key risks could be unavailability of quality content, slowdown in consumer discretionary spends, delay in roll out of proposed multiplexes, and competition from OTT and digital video platforms," the Nuvama report said.
Multiplexes saw a subdued April and May because of the heat wave, which kept people indoors, and Lok Sabha elections and the IPL T20 when movie launches were staggered.
"Q1 was affected in months of April and May, but based on the movie line-up, both Q2 and Q3 look very strong, be it Hindi, Hollywood or regional," Bijli said. After Kalki 2898 AD, which is currently running in cinemas, Sarfira, Bad Newz, Khel Khel Mein and Deadpool & Wolverine are some of the big releases lined up.
On competition from OTT, he said while streaming platforms gained momentum during the pandemic amid closure of cinemas, now "water has found its own level".
"It's taken time... but now production houses are preferring to release films at cinemas first, because cinemas clearly are the bearer of success...box office numbers only come from a cinema."
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