My Best Pick 2018

Saurabh Mukherjea*

The CEO of Ambit trusts the country’s leading multiplex chain to deliver a blockbuster performance

Published 3 years ago on Dec 29, 2017 5 minutes Read
Soumik Kar

Do you know which multiplex chain in the country boasts of an envious 40% share of Hollywood box office collections and 25% share of Bollywood box office collections? It goes by the name of PVR. In an industry, which is in the throes of consolidation on the back of a series of acquisitions, PVR has emerged as the king in a four-player market with Carnival, Inox and Cinepolis making up for the rest.

Given the limited competition, low screen density, and diversified content, PVR has tremendous growth potential to unleash. With 600 screens, the Bijli brothers-owned multiplex has the potential to grow revenues 7x and profits 10x over the next 15 years. This will be led by a combination of internal drivers (screen launch in high-quality catchment, pricing power, growth in ancillary revenues) and external tailwinds (closure of single screens and the introduction of the Goods and Services Tax). 

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PVR finds itself in an industry where the competitive dynamics are improving owing to increased revenue for movies via digital distribution, market share gain for multiplexes (relative to single screen cinema halls), and diversified content, with Hollywood and regional cinema growing faster. The Indian box office continues to be dominated by local content and franchises, unlike in China where Hollywood (dubbed) is dominant. While demand for local themes and content continues to be strong, the share of Hollywood content has gradually increased. Therefore, Indian players such as PV


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