Mumbai, Sept 2: Leading multiplex operator PVR INOX plans to close 70 non-performing screens in FY25 and will go for potential monetisation of non-core real estate assets in prime locations such as Mumbai, Pune, and Vadodara, according to its latest annual report.Though the company will add 120 new screens in FY25, it will also close almost 60–70 non-performing screens, as it chases for profitable growth. About 40 per cent of new screens addition will come from South India, where it will have a “strategic focus” on this lesser penetrated region as per its medium to long-term strategy.
Moreover, PVR INOX is redefining its growth strategy by transitioning towards a capital-light growth model to reduce its capex on new screens addition by 25 to 30 per cent in the current fiscal.
Now, PVR INOX will partner with developers to jointly invest in new screen capex by shifting towards a franchise-owned and company-operated model. It is also evaluating monetisation of owned real estate assets, as the leading film exhibitor aims to be “net-debt free” company.
“This involves a potential monetisation of our non-core real estate assets in prime locations such as Mumbai, Pune, and Vadodara,” said MD Ajay Kumar Bijli and ED Sanjeev Kumar told the shareholders of the company.
In terms of growth, they said the focus is to speed up expansion in under-represented markets. “Our company’s medium to long-term strategy will involve expanding the number of screens in south India due to the region’s high demand for films and comparatively low number of multiplexes in comparison to other regions.
We estimate about 40 pc of our total screen additions will come from south,” they said. It opened 130 new screens across 25 cinemas and shut down 85 under-perform- ing screens across 24 cinemas.