This megabrand pioneered the multiplex revolution in India in 1997 and over the years has continued to enthral movie lovers in every part of the country by redefining the finest cinema experiences for them. As PVR celebrated 25 glorious years of entertainment this year, TheatreWorld looks back and traces its journey of its founding days and how the brand has managed to stay ahead of the curve and become the leading film exhibitor in the country as it engages in a candid conversation with Ajay Bijli, Chairman and Managing Director, PVR and Sanjeev Kumar Bijli, Joint Managing Director, PVR.
Over the 25 years PVR has set many milestones, what has been the brand’s journey since its inception? If you had to look back and recall the journey, tell us a few defining moments?
Liberalisation started in 1990’s but till late 1990’s nothing much had changed in the Indian film exhibition industry. Ticket prices were low, occupancy was below 20 per cent when B-grade films was the norm. Infrastructure was poor, zero governance and piracy was at its zenith which kept families away. Poor returns served as a disincentive for producers as exhibitors lost business. The multiplex culture was unheard of in India 25 years back. The real revolution that PVR brought about led to the huge betterment in every single link of the cinema production, distribution exhibition and ancillary chain. PVR promised India a rich movie watching experience with world class infrastructure, technology which made for an audio-visual treat, in-class ambience that took care of their minutest needs. And this was just the beginning. PVR gave a platform to the common man where he can bring the entire family together. This saw other players emboldened by PVR’s pioneering experience, joined the multiplex industry to grow the sector seeing the huge potential in an under penetrated market in terms of screen density.
Over the past 25 years, PVR has introduced the latest global cinematic formats to the Indian audience. The brand has evolved to changing times with extra-large screens, laser projection systems, immersive sound and comfortable seating to deliver the ultimate sensorial cinema experience. It has reimagined the cinema F&B through curated food by world renowned chefs like Yutaka Saito, Mayank Tiwari and Sarah Todd. Instead of a ‘one size fits all’ approach, it has introduced PVR Privilege, India’s leading entertainment loyalty programme towards delivering a personalised experience to the customer. In our journey, it’s been a matter of pride on reaching the one billion USD milestone, funding from ICICI Ventures, reaching above 500 screens in less than four years’ time, acquiring major cinema chains like Cinemax and DT cinemas and becoming the most trusted and the most attractive brand.
PVR as a brand has been an inspiration to many upcoming ventures, what would you say has been the inspiration that drives your success?
We take pride in our ability to foresee the change in consumer tastes and needs and continue to reinvent the wheel so that PVR as a brand remains at the ‘Top of the Mind’ for our consumers. As a brand PVR continues challenging every aspect of cinema experience. Over the years, PVR has stayed relevant. We have always led the change and managed to transcend movie viewing to a holistic out-of-home entertainment experience. We have always benchmarked ourselves among the very best in the Out of Home entertainment industry and will continue to create new standards.
On reaching a leadership position, businesses tend to become proud of their achievements, however, PVR never loses sight of its ‘Humility’, the ability to imbibe the learning’s from leaders in other categories with a view to break set benchmarks of none other than its own. At PVR we remind ourselves every day that ‘Success is not a Sprint but a Marathon’ and the constant hunger for excellence is the driving force that keeps us on our toes every day.
PVR properties are known for their distinctive design and architectural feats, could you tell us a little bit on the development of these aesthetics through these wonderful 25 years? How has the architecture and design changed or adapted to the brand’s ideologies through the Silver Jubilee Journey?
When PVR started its journey 25 years of back, single-screens were marked by rumbling infrastructure, old technology and poor-quality movie experience which was driving away audiences. PVR saw this big problem as an opportunity by setting up India’s first multiplex Anupam Cinema at Saket, Delhi. With the choice of movies at varied show times, a world class ambience, cutting edge technologies, opulent comfort, indulgent refreshments, first rate hospitality, a hygienic and safe environment, the capital city discovered an insatiable appetite for cinema almost overnight.
PVR positions itself as the best out-of-home entertainment destination in the country, where the audience feels joy through a three-hour movie-cation and rejuvenating experience. Design is an integral part of this warm and welcoming ambience that distinguishes PVR from others. Our architectural intervention has a clean, emblematic and powerful sense of arrival. Our design symbolises a new turning point in the concept of experiential design, combining movie entertainment, world-class F&B services and attention with immersive technologies. Adding opulence to our theatres are magnificent lobby spaces, chandeliers, classic wall arts, seating with extra leg room, a complete digital cinema environment with interactive kiosks & large video walls. No two properties in PVR look the same.
Coming to cinema going experiences, how has PVR defined these experiences for its patrons? What are the different concepts that have been crafted to boost the cinematic experience?
We introduced the Gold Standard of cinema experience – ‘Gold Class’ for an audience who desired a great and exclusive experience with freshly prepared food and beverage for total indulgence with service at their seats. Going that extra length for the full-length luxury movie experience for the discerning audience with Director’s Cut. Our research and development led to the launch of our home grown enigmatic large screen cinema format, PVR P[XL]. We designed an auditorium, Playhouse, a dream world created by kids for kids with colourful interiors, characters on walls, in-audi slide, playful seating and a special kids menu serving as a perfect venue for birthday parties. 4DX changed the cinematic paradigm from just Watching to Experiencing, an absolute cinema experience with revolutionary realistic effects stimulating all five senses with high-tech motion seats and special effects including wind, fog, lightning, bubbles, water, rain and scents, in both 2D and 3D formats. Superplex was created as a complete out-of-home entertainment destination with multiple concepts (4DX, IMAX, Gold Class, Playhouse) under one roof. We opened our first drive-in theatre in collaboration with Reliance and a unique 6-screen boutique concept multiplex, Maison PVR in Mumbai that redefines the paradigm of luxury.
How do you ensure that PVR stays on top with the technological advancements and innovations within the cinema exhibition industry?
PVR has always endeavoured to bring the latest & the best international movie viewing experiences to Indian patrons. In fact, new technologies and formats always have contributed to PVR’s edge over competition with a view to offer something extra for the patrons by delivering the highest quality movie experience to our patrons. Technology is deeply integrated in all our processes and we have made significant investments towards digital transformation of the business and innovative customer engagement program. It expanded the premium formats such as IMAX, 4DX, Onyx, PXL, Playhouse through cutting-edge audio and visual technology to meet the ever-growing consumer expectations. We regularly participate in international cine expos and visit international cinema chains to identify the latest trends in the global scene which we can bring to India. Our senior management provides vital market insights to the product development team, which ushers in new ideas to innovate better brands for our customers.
The brand PVR Cinemas in India has been associated with premium, luxury and expensive experiences. How do you justify this association or image?
This image has been built due to the underlying philosophy and strategy that our theatres should look the best. Ambience is the first thing a customer notices as he enters the cinema and that makes him at ease and relaxed. India is a disparate, heterogeneous market and we want to be a pan India player. Our endeavour is to serve consumers across all price points and geographies. 25 per cent of our properties are located in Tier-2 and Tier-3 cities, however we invite the most discerning audience to our theatres even in these cities.
What are the challenges that you faced while establishing the brand? How did you overcome them?
We entered the industry at a time when consumers were not ready to shell out more for a movie experience considering the state and conditions that theatres were in. The transition from single screens to multiplexes is still happening and operational and capital expenditure has a huge difference. Of course, it needed a lot of education that quality came at a price. However, we understand the market, consumers well and kept on innovating and providing value for every pie that he spent. Then came the reaction from consumers against the high prices of food products in our cinemas and allowing outside food in cinemas in Maharashtra. We need to spend huge capital on squeezing multiple screens into a single location, paying rent and upgrading or installing the infrastructure. When consumers got more than they had expected, they didn’t mind to pay more for a differentiated experience.
As you’ve successfully completed 25 years and served the Indian market with exceptional results, what do you believe has set PVR apart from its contemporaries? What drives the uniqueness of the brand?
What differentiates PVR is its vision and relentless effort to understand its audience and overwhelm them with more than what they expect. As in any market, the customer is king and perpetual engagement and delight is the key to spinning the entire industry wheel of returns and growth. Agility to move the business in tandem with audience aspirations and adjusting to changing consumer preferences of the cash rich time poor audience made PVR a thought leader in this space. As a leader in the cinematic exhibition market in India we have a relentless focus on innovation, value creation, meticulous planning and operational excellence. We always look at the bigger picture beyond short-term challenges, as our patrons continue to repose their faith in our brand.
The pandemic has not deterred the spirit of PVR, how has the cinema chain successfully managed to keep its doors open while continuing to make pivotal expansions?
Due to huge fixed cost base, we recognised early on that the business would require greater liquidity to get through the crisis. We, thus paid the matter adequate attention and successfully raised a total of INR 1,800 Crores through a combination of debt and equity during the pandemic. We used the force majeure clause with the majority of developers or landlords, and we were able to secure significant rent and CAM discounts in the form of whole or partial waivers or discounts from our landlords or developers. We reduced fixed operating expenses and deferred all new project handovers since the start of the pandemic and all capex for new properties were put on hold. During the year 2020-21, we unveiled only 13 additional screens and 29 screens in 2021-22. These screens required very little capex outlay as they were in advanced stages of construction before the pandemic hit us.
We responded by adopting newer ways of working, creating a delightful experience, optimising costs, and ensuring that our employees are protected from the virus through 100 per cent vaccination. As a category leader, PVR went ahead to ensure that cinemas are safe in every possible way for both guests and staff; and going beyond what was mandated by the government. The safety and hygiene parameter across every touch point in the customer journey right from Box Office, Security, Lobby, Audi, Concession, Rest Room and Exit was addressed in its PVR Care programme.
Could you shed some light on the other entities with PVR Ltd. And your plans for their growth and expansion?
We conduct the movie distribution business through PVR Pictures Ltd. ‘PVR Pictures’, our wholly owned subsidiary. PVR Pictures aims to be the preferred distributor for Hollywood production houses that do not have a base in India for distributing movies. Further, we have started increasing our foray into distribution of Hindi and Regional language movies. The Distribution business helps us in maintaining a good and healthy relationship with producers, film stars and other key stakeholders of the entertainment industry.
Zea Maize is engaged in manufacturing, packaging and selling gourmet popcorn under the ‘4700BC’ brand. It has a strong brand recall among consumers, and we were the first to introduce premium popcorn in the Indian market. The brand is built on highly innovative products with unique flavours. It has an Omni-channel presence across Retail, E-com, Q-Com, D2C, Institutional and Corporate and is now expanding globally. It is creating a brand category in India for premium snacks and is currently focusing on corn based snacks. The Company has recently moved beyond gourmet popcorn to expand into Makhana, Chips, Corn Nuts and Sweet Corn.
What are PVR Cinemas’ immediate plans as it celebrates 25 years? What are the upcoming plans as it continues to reach new heights?
The celebration started with Aamir launching our new brand film ‘Iss Andhere Mein Bahut Roshni Hai (There is Light in This Darkness)’ featuring him and unveiling our 25th Anniversary logo. To bring its heritage to life in the metaverse, PVR also launched its first ever NFTs with special edition NFT coins and ticket capturing the story of its brand and it’s most iconic moment. The brand film idea comes from the insight of all the emotions and experiences the audience goes through – the magic of movies, the bonding and escaping to a fantasy world, when the lights go down. The concept for the film was derived from a consumer insight and the poem was written by Vineet KKN Panchhi which was further evolved for the film.
From this year, we are determined to carry forward our vision of bringing world-class movie watching experience to every part of the country. We have also recommenced our Capex programme and intend to open approximately 120-125 screens in FY23. We continue to invest in our loyalty programme ‘PVR Privilege’ which has 14.6 million loyal patrons and introduce new initiatives to inculcate loyalty amongst patrons. We are currently piloting a programme which allows subscribers to watch movies on weekdays by paying a monthly subscription fee. As we celebrate 25 years of PVR’s inception, we continue to remain confident about our business’s prospects and the milestones PVR will achieve over the next 25 years.
Tell us a little about the INOX PVR merger and what are the further plans?
The announced merger with INOX Leisure is progressing well. Both the companies have received ‘No Objection Certificates’ from the 2 stock exchanges (BSE and NSE) on the proposed scheme of merger. We have filed our application for the approval of scheme of merger before the National Company Law Tribunal (‘NCLT’).