Pick up in moviegoers, operating profit prompt turning 5-PVR to open up for investors in SL

PVR Inox CEO of the Luxury Collection and Innovation and PVR Lanka Director Renaud Palliere - Pix by Ruwan Walpola

• Reveals 9-screen multiplex at OGF is one of top performers of entire group including in all of India
• Says open to investment opportunity with financial partners

By Nisthar Cassim

India’s pioneer in multiplex revolution and the largest PVR Inox has seen growing patronage in its Sri Lanka venture at One Galle Face now nearly five years and making profit at operational level.

“We are profitable on an operating basis and average occupancy is around 30-40% which is very commendable in the cinema business,” PVR Inox CEO of the Luxury Collection and Innovation and PVR Lanka Director Renaud Palliere told the Daily FT.

In the multiplex business, depending on the cost structure the breakeven is achievable at over 20% occupancy.

In November 2019, PVR invested $ 7 million to introduce the country’s first multiplex at the 6th level of One Galle Face (OGF) of Shangri-La with nine cinemas including premium and luxury experience. Total seats offered are 1,139. Redefining the movie viewing experience, it introduced premium formats like PVR LUXE among several other firsts in Sri Lanka.

PVR pioneered the multiplex business in India by establishing the first facility in 1997 at Saket, New Delhi. Following a merger in 2023 it is now known as PVR Inox, which operates 1,754 screens across India.

Renaud said PVR’s first foray outside India was most challenging as a few months after opening in Colombo the outbreak of COVID-19 pandemic took place followed by the political and economic crisis in 2022 in Sri Lanka. The country also saw sharp depreciation in its exchange rate which impacted PVR’s original investment and the rise in overall costs.

“We were kind of stopped in our tracks after a very exciting opening. We were extremely positive about the introduction of our brand here in Sri Lanka. Overall it was an amazing learning experience and a positive one too,” Renaud said reflecting on the initial years of PVR in Sri Lanka. He said during the political and economic crisis, PVR was surprised by the loyalty of its guests and the resilience of the business.

“We recorded very strong attendance, even during that difficult period. We weren’t expecting that, obviously. Ever since, the business has only grown stronger,” he said, adding that Sri Lankan operations have achieved the operating target set at the time of the investment. “The multiplex at OGF is one of the top performers of the entire group, including in all of India,” Renaud revealed.

PVR has also benefited from Sri Lanka’s strong appetite for a variety of films ranging from Bollywood, Tamil, English and Sinhala as opposed to in India with the Northern part more skewed towards Bollywood and the South to Kollywood movies and Hollywood enjoying only a small national average.

“We have a lot more diversity of content in Sri Lanka in terms of appeal. As a result the dependency levels have been sustained and have been consistently high. Whereas in India, there have been fluctuations based on the type of content and the quality of content that comes in,” explained Renaud.

Of the nine screens at PVR two are lux auditoriums characterised by recliner seats, big leg room and very comfortable seats. PVR also offers family oriented experience with a playhouse for kids. One Galle Face has fast become the destination of choice for entertainment, shopping and food for people in and around Colombo.

“We came to Sri Lanka over four years ago not knowing the market. So the view was, let’s establish, let’s build this place, let’s operate it, let’s see how it works. We are finally at a point where we have achieved our operational target, although obviously because of the currency depreciation the investment will take much longer. Today we are very confident in this product and its ability to perform in the market. We will be happy to explore some investment opportunities with the financial partners,” he added.

Renaud said PVR has kept ticket and food and beverage pricing in check despite high inflation. The average ticket price is Rs.1000 (price varies depending on the blockbuster, movie time and class of luxury) and the SPH (spending per head on food and beverages) is over Rs, 600.

He said PVR will shortly launch a more immersive experience to enthral regular movie goes in addition to rewarding loyalty

PVR is confident of greater success in tandem with recovery in the economy and disposal income.

“As a location and destination, we find where we are the best and of course, Colombo is a wonderful city and with tourism picking up it is very encouraging. Overall the cinema market is getting more dynamic. As the lone international brand we are setting the standards,” he added.

It was PVR which came up with new show times including late night and some blockbusters first day shows debuting in early hours.

He also said that the multiple movie offering has also sparked a new business where regular patrons from Jaffna spend the weekend in Colombo to watch different films and head back to Jaffna.