Ajay Bijli, the Chairman and MD of PVR, has discussed the expensive food and drink prices at Indian PVR. Bijli recently told the Economic Times that multiplex entertainment in India needs to be improved at every price point. The chairman claims that although India is currently under-screened, it has a lot of potential to develop as a nation. According to Bijli, the Food and Beverage (F&B) industry is currently valued over Rs 1,500 crore.
The chairman made it clear that he doesn’t hold consumers responsible for complaining about the exorbitant costs of F&B at any PVR. According to Bijli, Indian movie theatres are still in the process of changing from having a single screen to eventually having numerous screens. Since the process is in the middle, the capital investment and operation in single screen and multiplexes are very different.
In order to further clarify the expenditure portion of his analysis, he stated that installing several screens in a small space, the expense of constructing infrastructure, and the rental of the space leased in malls are some of the main reasons why multiplexes’ costs have escalated. “Expenses are a function of quality,” he continued. People don’t complain when they are content with the treatment they are receiving.
The chairman clarified that having numerous screens entails having additional projection rooms, sound equipment, and air-conditioned foyers. The operating system and capital expenditure almost both increase as a result of this. “Earlier, single screens only had one projection room, one sound system, and no air conditioning in the foyers,” he continued. Capital expenditure (Capex) increased four to six times once multiplexes were introduced.
In addition, Bijli thinks that customers are satisfied with the level of quality that multiplexes provide. The F&B industry would not have seen the sales growth that it has in recent years if that weren’t the case.