PVR INOX to Shutter Non-Performing Screens and Adopt FOCO Model for Profitable Growth

Leading multiplex operator PVR INOX will close 70 non-performing screens and add 120 new ones in FY25. With a capital-light growth model, the company plans to shift towards a franchise-owned and company-operated model to reduce capex. Strategic focus on South India and monetisation of non-core real estate assets are central to its growth strategy.

Leading multiplex operator PVR INOX plans to close 70 non-performing screens in the fiscal year 2025 and will explore potential monetization of non-core real estate assets in key locations such as Mumbai, Pune, and Vadodara, according to its latest annual report.

The company will add 120 new screens in FY25 but will also close almost 60–70 under-performing screens, aiming for profitable growth. About 40 per cent of new screen additions will come from South India, which has a strategic focus in the company's medium to long-term strategy due to its lesser penetration.

PVR INOX is transitioning to a capital-light growth model, partnering with developers for new screen capex investments, and shifting towards a franchise-owned and company-operated (FOCO) model. The company also aims to become a net-debt-free entity by monetising owned real estate assets. In FY24, PVR INOX operated with a net debt of Rs 1,294 crore but reduced it by Rs 136.4 crore. Despite cutting capital expenditure, the company reports a 10 per cent growth in ticket prices and 11 per cent in F&B spend per head due to merger synergies.

(With inputs from agencies.)