As its merger with PVR Cinemas comes to a close, the multiplex chain Inox Leisure has announced its big plans to grow.
Inox has 722 screens in 170 multiplexes in 74 cities, while PVR has 900 screens in 181 properties in 78 cities. After the merger, which was approved by India’s National Company Law Tribunal earlier this month, the new company will be called PVR-INOX. It will be India’s largest multiplex group by a long shot and will have theatres in 109 cities.
The annual EY report on the Indian industry says that even though India has 1.4 billion people, it only has 9,423 movie theatres. Statista says that China, which has a similar number of people, has more than 82,000 screens.
Inox is working quickly to fix this. It will add 40 more screens by the end of March, and its CEO Alok Tandon says that many more are coming.
Inox has opened a multiplex in Srinagar, which is the capital of the troubled Indian state of Jammu and Kashmir and has been plagued by violence for decades. This is in line with its agnostic values. Before that, the Kashmir valley was one of the most popular places to visit and make movies in India. The first multiplex in the history of the state was built on the Inox property.
“The way we see it, movies have been a part of our culture for more than a hundred years. And all of us Indians know how important they are to us on an emotional level. And in addition to being places to have fun, I think movies have also helped people learn about other cultures,” Tandon said.
“Kashmir and the Indian film industry have been close for a long time, and we are here to bring entertainment to the valley and renew that connection. We think that the movie fans in the valley will love multiplexes and cinemas. “We are very hopeful that it will work,” Tandon said. “And sure enough, there are a lot of people coming to the movie theatre, though it’s not as busy as it is in other parts of the country. But I don’t think there’s a reason to worry because people haven’t left their homes or gone to the movies in 32 years.”
India’s National Cinema Day was on September 23, 2022, and ticket prices were cut to INR75 (92 cents). Multiplexes like Inox and PVR took part, and on that day, most of the theatres were about 90% full. Tandon doesn’t think that keeping the prices of tickets low is a long-term way to keep people going to the movies.
“I don’t agree that lowering ticket prices will bring more people in. Yes, National Cinema Day was a one-time marketing effort. It was like a Black Friday sale. So, if you tell all stores to cut their prices by 50% or 70%, will they still be able to stay in business? Tandon said, “The simple answer is no.” “Yes, it seems like everyone wants to be a part of that Black Friday sale, so people do it. And the same goes for movies. We said it was more of a thank-you to the people who had been waiting two years for us to open.
Tandon says that keeping the ticket prices at INR75 is not a good idea from a business point of view. “Our strategy for setting prices is very clear. We never charge more than we can afford, and we make sure to price our tickets based on how likely people are to pay, how much the property costs, and how new the movie is,” Tandon said. “The price of a ticket has nothing to do with how many people show up. What matters is how good the show is.”
