Multiplexes expand into tier 2 and 3 cities.

Chairman of Carnival Group Srikanth Bhasi, who found that families in places such as Satna in Madhya Pradesh often travelled to Bhopal to watch latest Bollywood pot-boilers, smelt an opportunity to expand to tier 2 and 3 cities to exploit the demand for multiplexes.

“We realised that single screens were largely frequented by bachelors and not families. There was a need for quality entertainment just as in cities. Our aim is to replicate the city multiplex experience at a lower cost,” Bhasi noted.

As single-screen theatres are dying out in tier 2 and 3 cities, multiplexes are tapping the market not just with tickets priced at an affordable range but also with their F&B offerings.

According to industry experts, currently there are fewer than 10,000 screens pan-India as against a couple of thousands that existed a few years ago.

Carnival Group, which owns and operates Carnival multiplexes, said it would invest ₹300 crore to set up 80-odd multiplexes in tier 2 and 3 cities.

Most industry players, however, note that getting requisite approvals for multiplexes and quality real estate was a challenge coming in the way of fast expansions.

Mexican multiplex Cinépolis chain says lack of quality real estate space is coming in the way of its quick expansion plans. Cinepolis, which started operations in 2009 from Amritsar, has 215 operational screens, is also looking at tier 2 and 3 cities in a big way.

“There is a slowdown in the real estate sector which is impacting our expansions plans in the metros. However, we have found some good quality real estate development in tier 1, 2 and even 3 cities,” Javier Sotomayor, MD, Cinepolis India said.

Sotomayor also noted that F&B will be a key area. 'People come to the cinema to watch a movie but food plays a major role. F&B will be a core area as it contributes to the whole experience of watching a movie,: he added.

Another multiplex operator Inox said it has entered the North-East with the launch of a property in Jorhat, Assam.

Ajay Bijli-owned PVR Cinemas, which has about 500 screens, is also adding another 67 multiplexes by March with an estimated investment of about ₹200 crore.

Gautam Dutta, CEO PVR Ltd. said, “When we get a great catchment we do an in-depth research to understand the customer profile and brand the product accordingly. We will be adding 67 more screens both in the metros and tier 2 cities.' The company said its 55 per cent of its multiplexes are in metros and the balance in tier 2 and cities.


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