Under the FOCO model, PVR INOX leverages its expertise to manage the design, development, execution, and daily operations of cinema properties owned by investors. The company recently inaugurated a 5-screen multiplex in Raipur and is relying on the FOCO model to expedite its expansion nationwide, with a particular focus on enhancing premium cinema experiences in promising Tier II and Tier III cities.
“The FOCO model’s inception was marked by the Gwalior location that opened last year, followed by the Raipur multiplex launching at the start of this fiscal year. We are now poised for rapid growth in this area,” Arora said.
He stressed on the necessity of thoroughly understanding and establishing effective standard operating procedures (SOPs), noting that the company has invested the past three and a half years refining this model, which has halved the execution time.
“With this groundwork now complete, we expect the rollout to be both quicker and more efficient,” he added. He believes that the FOCO and asset-light models are pertinent across all city tiers, including Tier I, II, and III.In its third-quarter report, PVR INOX revealed its commitment to expanding its footprint by signing contracts for 100 screens across 22 cinemas, which include 31 screens in 8 FOCO cinemas and 69 screens in 14 asset-light setups. Arora mentioned that the forthcoming screens will embody the affordable luxury concept, responding to the growing consumer appetite for immersive cinema experiences.”When customers allocate their discretionary spending, they are increasingly seeking elements of luxury. However, affordable luxury does not necessarily equate to high prices; market dynamics dictate pricing,” Arora clarified.
He underscored the importance of offering ‘experiential cinema,’ which is increasingly recognised as affordable luxury within the Indian landscape. It serves as a means to access unique experiences rather than simply a pathway to opulence, Arora explained.
Arora also highlighted the need to widen cinema access across India, citing the North East region as an example where, despite being a part of the larger Bharat, it has largely missed entertainment opportunities. PVR INOX plans to establish screens in Shillong, Gangtok, and Siliguri using the same model.
Discussing the imperative of developing cinema exhibition infrastructure throughout India, Arora noted that a staggering 92 percent of the industry relies on national, regional, local, and hyperlocal content, while a mere 8 percent of box office revenue comes from imported content.
“For local filmmakers and artists to reap economic benefits, there must be adequate cinema infrastructure in place. The cinema format uniquely allows for box office revenues to be shared with production houses, facilitating the creation of more films,” Arora told PTI.
