PVR Cinema Plans To Expand Around 1000 Screens By 2018

 
PVR, one of the India’s leading sophisticated brands establishing theaters across the country. PVR is expanding its business by increasing number of screens all over the India. Today, PVR operates 467 screens and planning to set up around 1000 screens across India by 2018.

PVR had already entered in non urban areas in 2009 and is now targeting cities like Pathankot in Punjab and Dhanbad in Jharkhand to open screens. Three years earlier, when senior vice president of PVR realised while visiting Kolhapur (Maharashtra) that a hypermarket used to sell goods worth more than Rs 3.5 crore every month and PVR too had an opportunity in Kolhapur.

In the recent times, PVR established the screens in some of the tier II and III towns such as  Hubli in Karnataka; Latur, Aurangabad and Nanded in Maharashtra; Raipur and Bilaspur in Chhattisgarh; Ujjain in Madhya Pradesh; and Panipat in Haryana.

Earlier in June 2015, PVR announced the acquisition of DLF's multiplex subsidiary DT Cinemas for Rs. 500 crore and added 29 screens to its portfolio. Two years back, PVR acquired Cinemax at around Rs 395 crore and added 138 screens in its portfolio. Further, PVR is very close to buy Chennai-based SPI Cinemas, popularly known as Sathyam Cinemas, for about Rs 700-1000 crore. SPI Cinemas  operates 40 screens located in predominantly in southern metro, Chennai.

Since last two years, the share price of PVR has increased by 178 per cent. According to 5th edition of the Brand Trust Report in May 2015, PVR has come into sight as the most trusted brand of the year under the Entertainment category. With ambitious plans to increase its screens across predominantly non-metro cities, the company has both inorganic and organic ways to expand. It will be a good stock to watch for over next three year.