PVR plans to invest Rs 1.3 billion, add 72 screens by FY’11

MUMBAI: Delhi-based cinema exhibition major PVR plans to invest around Rs 1.3 billion and add 72 screens by FY‘11.

PVR will be setting up 32 screens this fiscal and has a capex requirement of Rs 500-600 million. “We have not added any screen yet this fiscal. All the 32 screens will come up in the fiscal third and fourth quarter,” a source in the company says.

PVR intends to invest Rs 600-700 million in FY‘11 and add 40 screens during the year, the source adds.

PVR currently has 26 cinemas with a total of 108 screens spread over Delhi, Faridabad, Gurgaon, Ludhiana, Ghaziabad, Mumbai, Bangalore, Hyderabad, Lucknow, Indore, Aurangabad, Baroda and Latur.

On the film production front, PVR will not have any releases this year. “The film distribution activity will speed up in the last two quarters. But we won‘t have any film releases this fiscal,” says the source.

PVR has co-produced a string of hits including Taare Zameen Par, Jaane Tu Ya Jaane Na, Contract and Mere Khwabon Mein Jo Aaye and distributed films like Ghajini, Golmaal Returns, Dasvidaniya, Dil Kabbadi, Sarkar Raj, Bal Ganesh, Loins of Punjab, Breach, Hannibal Rising and Don.

PVR is in negotiations to acquire DT Cinemas, a wholly owned subsidiary of DLF Group that runs 26 screens across five locations in NCR and one in Chandigarh.

PVR expects to post strong growth in the next two quarters as big-budget movies are set for release and the market is in recovery stage, the source says.