Multiplex player PVR has signed an agreement with real estate developer M3M India for an upcoming eight-screen property at 65th Avenue, the recently delivered 1-million-square-feet retail project in Gurugram.
"It will take around a year's time to open the eight-screen property for public. We should be starting work from April-May onwards. PVR is investing Rs 24-30 crore to set-up the upcoming property," Sanjeev Bijli, Joint Managing Director, PVR Limited told Moneycontrol.
He added that while M3M India has more plans and PVR looks forward to partnering with them but there is nothing concrete in terms of more property launches in partnership with the real estate developer.
With the upcoming property, PVR is starting capital expenditure on new screen additions.
"We have opened 18 screens so far and have 20-odd screens which are in completion stage. We have fresh handovers of about 40-screens as well. These are commitments we had with developers. We have started capex slowly in some of these properties," Bijli added.
He added that before the pandemic, the peak in screen additions the multiplex player had was about 80 screens. "We will be happy if we are close to 60-65 screens in 2022-2023." PVR currently operates 860 screens.
The eight-screen property in Gurugram will also comprise of LUXE Cinemas. The multiplex operator in premium screen category has eight screens of Director’s Cut, 39 screens of LUXE, four screens of Sapphire, nine screens of IMAX, 19 screens of 4DX, nine screens of P[XL], 13 screens of Playhouse and one screen of PVR Onyx across India.
Talking about reopening of theatres in Delhi and restrictions easing in some states, Bijli said, "It is early days and there were no big releases last Friday and this Friday. So, the true test will come from February 11 when Badhai Do hits the big screen. Then there is Moonfall, Death of the Nile coming. Alia Bhatt-starrer Gangubai Kathiawadi on February 23. It takes one big film to get audiences back and for footfalls to come back."
In December last year, PVR witnessed strong business recovery with exhibition revenue coming close to pre-pandemic levels, thanks to content like Spider-Man No Way Home that released on December 16 and crossed the Rs 200-crore mark at the India box office.
Analyst Karan Taurani, senior vice-president, Elara Capital said that there will be positive impact of new content on footfalls and occupancy. He expects box office numbers to reach 40-50 percent of pre-COVID levels until March this year and estimates box office business to largely go back to pre-pandemic levels in April-June quarter this year.
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