Movie theatre chain PVR, known to operate in the premium segment, plans to open 150 low cost screens under its 'PVR Talkies' in 2-3 years to expand its footprint to smaller towns.
The company, which on Tuesday tied-up with Dolby Laboratories for new technology 'Dolby Atmos', is banking on organic expansion with plans to open up to 70 screens ever year as it does not foresee acquisitions in the film exhibition industry in the near future.
"We are seeing good growth in low cost cinemas. We are opening low cost cinemas in tier II and tier III cities. We are following three pronged strategy for growth and will open 150 such low cost screens in the next 2-3 years," PVR Ltd Chairman and Managing Director Ajay Bijli told reporters.
At present PVR operates 80 screens under 'PVR Talkies' brand. It has three brands across different price points - PVR Talkies, PVR Cinemas and PVR Premium.
Overall, it has 474 screens in 43 cities in the country.
PVR said it will install Dolby Atmos technology at 50 screens in two years time for better sound experience .
"We will invest about 40 odd crore to install this technology across 50 PVR screens," Bijli added. At present, Dolby Atmos technology is available at 100 screen.
On expansion, Bijli said, "I don't see any more consolidation. Lot of action happened last year, if something has to happen probably again after some time. Only serious players are left now. We will open 60-70 screens every year.
With the pace of development of malls in India, we think opening 60-70 new screens is ok."
Last month, PVR acquired real estate major DLF's DT Cinemas for Rs 500 crore.
In January this year, Mexican multiplex chain operator Cinepolis fully acquired Essel Group's Fun Cinemas for an undisclosed sum.
Media and entertainment firm Network18 exited from multiplex business by divesting stake in Stargaze Entertainment to Carnival Films for an undisclosed sum.
In December 2014, Anil Ambani led Reliance Group sold its multiplex business to South-India based Carnival Group in the largest ever deal in this space.