PVR has spent Rs 40 crore to Rs 42 crore for the first multiplex in Sri Lanka
Multiplex player PVR Cinemas announced its entry into the Sri Lankan market on November 8 with the opening of PVR Lanka at One Galle Face Mall, Colombo.
PVR, in collaboration with the Shangri La Group, launched the new nine- screen property which hosts premium formats like PVR LUXE, a luxury cinema format and PVR PlayHouse, an auditorium for kids and their family.
Talking to Moneycontrol, Sanjeev Kumar Bijli, Joint Managing Director, PVR Ltd, said, "The nine-screen multiplex spreads across two levels with an area of 38,454 sq. ft. and a seating accommodation of 1,139 viewers.”
He added that PVR has spent up to Rs 42 crore for the first multiplex, “slightly more than usual because the import duty is high but for the second one we will be able to manage the capital cost.”
PVR will be launching another multiplex in Colombo in around 12 months and it will be a seven screen property.
But why Sri Lanka?
“We were exploring markets outside of India but not very aggressively because our main focus is India as we are still on a track to open 100 screens per year. But Sri Lanka is a market which is like an extension. There is a strong movie going culture. There wasn’t a multiplex for a long time but now there is massive development in terms of infrastructure. We can clearly see the country is on the move," said Bijli.
"It (Sri Lanka) is under screened. There were only single screens. PVR’s multiplex is the second multiplex in the country. One was launched last year by a local player. Hence, there is a huge untapped potential in Sri Lanka,” he added.
Ticket prices will be in the range of 500 Sri Lankan rupees to 1200 Sri Lankan rupees and in Luxe it will be around 1,400-1,500 Sri Lankan rupees.
While PVR was looking at international expansion for the last two years it has no plan to go beyond Sri Lanka as Bijli said that their focus is India and PVR is expecting the entire growth from India.“Entering Sri Lanka was part of our business strategy for FY 19-20. The socio-cultural similarity between the two nations makes the scope for business growth opulently clear,” said Ajay Bijli, Chairman and Managing Director, PVR Ltd.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.