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Mint
19 hours ago
- Business
- Mint
From Leh to Kota, multiplexes roll into smalltown and southern India
Several multiplex cinema operators are surging ahead with a two-pronged expansion strategy undeterred by recent unpredictable box office performance. Big multiplexes such asPVR Inox and Cinepolis as well as smaller companies such as Miraj Entertainment Ltd, Mukta A2 Cinemas, and MovieMax Cinemas have set their eyes on tier 2 and 3 markets such as Patna, Shillong, Jaipur, Kota, and Leh-Ladakh to build low-cost cinemas with local developers. The second part of the strategy involves focusing on markets in South India, including cities like Hyderabad, Bengaluru, Huballi, Kochi, and Cuddalore that boast a robust theatre-going culture, according to industry experts. These expansion plans come amid a lacklustre first half of the year for the Hindi film industry, the country's biggest, which is pinning hopes on a stronger second half with a wave of sequels and stories rooted in mythology and folk traditions, as Mint reported on . However, real estate experts said the overall cinema industry's expansion remains fairly conservative, with smaller properties and fewer screens planned as alternative entertainment options such as OTT (video-streaming platforms) have become increasingly popular, especially post covid. 'The South is a strategic focus area for us," said Kunal Sawhney, chief operating officer, MovieMax Cinemas. 'The region's rich cinema culture, coupled with the popularity of films across multiple languages, allows for greater programming flexibility and wider appeal. This, in turn, leads to better (seat) occupancies." MovieMax is targeting several towns across Andhra Pradesh, Telangana, Tamil Nadu, Kerala and Karnataka as part of its expansion, which includes expanding to tier 2 and 3 cities, particularly those with populations of 500,000 and above, Sawhney added. 'In these markets, average ticket price will be lower than metros, in alignment with local affordability. (But) we typically partner with strong regional developers who have a deep understanding of local market potential and are committed to delivering a high-quality mall experience tailored to the needs of the community," Sawhney said. Pricing caps, regulations, and other challenges Rahul Puri, managing director, Mukta Arts and Mukta A2 Cinemas, agreed these smaller markets hold strong potential, as ticket prices in these regions are designed to reflect local dynamics, making cinema-going more accessible to wider audiences. Mukta too is collaborating with regional developers to develop multiplexes in smaller cities. Referring to tier 2 and 3 markets as commercially promising yet under-screened, Bhuvanesh Mendiratta, managing director, Miraj Entertainment, said ticket prices in smaller cities are calibrated to local affordability, averaging ₹180-200, significantly lower than in metro cities. 'We partner with local developers, including mall owners and standalone theatre operators, often converting single screens into three to four screen multiplexes," said Mendiratta, whose company is venturing into cities such as Sitapur, Alwar, Ittawa, and Sambalpur. Miraj Entertainment plans to add 40-50 screens in 2025-26, of which 25-30% will be in South India, including cities such as Chennai, Kozhikode, Visakhapatnam, Kurnool, and Tumkur. To be sure, southern markets pose certain unique challenges for multiplexes, according to some experts. Anuj Kejriwal, CEO and managing director, ANAROCK Retail, a property consultancy, said cinemas in South India faced strict state-imposed caps on ticket prices, a less well-developed mall culture in some cities, as well as the prevalence of single-screen theatres. Complex regulations and competition from OTT platforms can reduce overall profitability for cinemas and prevent faster adoption of luxury formats in the southern markets, industry experts said. In several small cities in South India, multiplexes will need to modify their business models according to the local market dynamics and requirements to ensure sustainable growth, they added. That said, some of these hurdles and evolving dynamics aren't specific to South India. 'Competition from OTT and general lack of new content in cinemas has meant that companies are now quick to give up on properties that aren't doing well," said Abhishek Sharma, director, retail, at realty consultancy Knight Frank. 'Further, from the 10-plus screens planned earlier, theatre chains aren't looking at more than eight screens as the best possible scenario now."
Mint
30-06-2025
- Business
- Mint
Never mind the movie - just get the popcorn! That's the latest audience trend at the cinema
Step into a multiplex these days and it would seem that the people have come there more for the popcorn and the fizzy drinks than to watch a movie. The F&B (food and beverage) business of cinemas has been holding relatively steady even though movies haven't been doing too well at the box office over the past few months, especially in the Hindi belt, theatre owners and experts said. However, experts said ancillary streams such as F&B can thrive only when new movies start performing well. More importantly, exorbitant F&B rates are pinching viewers across demographics and segments. With even basic popcorn and cola combos priced upwards of ₹700 in some cases, audiences are feeling ripped off. For PVR Inox, India's largest multiplex chain, although revenue from the sale of movie tickets fell 9.9% in FY25, the dip in F&B was lower at 6.7%. F&B spending per head actually rose by 1.5%. The successful re-release of older hits and strategies like showing cricket matches and live events, along with discounts and buy-one-get-one-free offers for F&B have helped exhibitors. According to theatre owners, audience preferences too have changed. 'Audiences today seek more than just the traditional popcorn-and-cola experience. Our expanded food offerings now include a full range of meals, and we're observing a clear pattern of individual orders per head, especially in group settings, leading to higher average spends per customer," said Kunal Sawhney, chief operating officer of MovieMax Cinemas. Sawhney added that several initiatives have contributed to strong F&B performance including a diverse menu featuring both snacks and meal options, the ability to pre-order food while booking tickets, and redesigned cafés with specialty counters. In addition, there are auditorium delivery, digital ordering and payment convenience, on-screen promotions, customised menus and flexible pricing. Complete experience Rahul Puri, managing director, Mukta Arts and Mukta A2 Cinemas, agreed that F&B revenue has remained steady and, in many locations, grown despite a dull box office. 'Guests are increasingly seeing cinema outings as a complete experience, and indulgence in quality food and beverages has become a big part of that. Consistent innovation in our menu, value-driven pricing, and strong in-theatre promotions have helped keep F&B performance strong, even when box office content fluctuates," he added. Several cinema chains expect F&B to become a significant contributor to revenue. With strong guest response to value-driven offerings and continued focus on quality, they anticipate an even more important role for F&B in the business. 'Currently, F&B contributes around 34% of our revenue. We expect this to grow to 40% in the next two years," said Bhuvanesh Mendiratta, managing director, Miraj Entertainment Ltd, a company that operates multiplex theatres. However, experts pointed out that the real driver of the film business is new and exciting movies. Even though F&B does its bit to improve earnings, it will always remain an incidental – and not standalone – expense. 'F&B is a demand derived from the film. Also, prices are too high, especially in national chains, and this negative perception built around F&B in general is very sad for the overall business," independent exhibitor Vishek Chauhan said. While single-screen owners operating in smaller towns such as Chauhan are cognizant of the need to maintain reasonable F&B rates, mostly pricing popcorn and colas below ₹100, they said the bigger chains have clearly outpriced at least 90% of the population. 'Multiplexes are seen as a brand for the rich and even when it comes to people who can afford these rates, the narrative around being ripped off stays. The negative perception has been built," Chauhan added.
