PVR Cinemas, one of the leading film entertainment companies in India, is going to invest Rs 80-100 crore in renovation and technology up gradation to evolve from 4K projection to laser projection. The company is also expecting to maintain double-digit growth in its media sales, which now stands at 12 per cent of its turnover.
Gautam Dutta, Chief Executive Officer, PVR Limited, said, "We are continually revamping our properties across the country to give them a fresh look as well as match the changing technology. These renovated properties have the latest technology in terms of projection and sound. With the industry moving from 2K to 4K, we too invested in 4K. Now with the advent of laser technology, we will soon be investing in laser projection."
The company anticipates a 4-5 year payback on the renovation expenditure. Among business segments, PVR has seen decent growth in its media sales, which comes through in-cinema advertisements, among others, with the company expecting to close at Rs 200 crore.
Dutta said, "Overall in-Cinema advertisements are getting more traction and recognition and we expect to maintain a double-digit growth rate in sponsorship income as well. We already have the top 100 brands advertising with us."
Dutta said there was no significant impact of demonetisation on occupancy rates in the cinema exhibition business.
Dutta said, "There was a three-week lull in 2016 post-demonetisation. However, India as a market has had occupancy of 32-36 per cent, which we are able to manage. In fact, India has the highest in occupancy in the world. Year on year, great content has been coming in and the occupancy level has been around 32-40 per cent and stabilises at around 36 per cent."
PVR already has 350 screens in the pipeline, with over 100 under construction. Annually, the company plans to add 65-75 screens.
Dutta said most of the consolidation in the industry had already happened, with a few small players still around which could be takeover targets.