PVR INOX Has Decided To Shut Down 50 Screens In the Next 6 Months
The multiplex chain PVR INOX has decided that they will shut down some of their screens throughout the country. It came after the analysis of the performance of the screen. Read this article to know more.
PVR INOX is a merger firm for two multiplex giants PVR, and INOX. This merger finally happened in the February of 2023. After the merger, the companies worked to improve their presence throughout the country.
As a part of improving their business, they have decided to shut down 50 of its screens spread in different parts of the country. They have also stated why they reached this decision.
- The screens selected are ‘loss-making’. Meaning that the screen selected to close down is not performing well and isn’t generating enough returns.
- It is also stated that the malls that the screen is present at have reached their final stage of the life cycle. This means that the malls are no longer able to attract as many customers. The chances of these malls reviving are very less.
These two are the prominent reasons stated for shutting down the screens within the next six months. The company has taken accelerated depreciation for these properties in its account books. They have written off the written down value of the asset in the books. The value is about ₹105.8 million.
Closing down screens is not the only strategic decision that the merged entity has made. They have stated that they plan on opening up about 175 more screens throughout the country in the financial year 2023-24.
- They have already successfully opened nine screens that are fully functional now.
- They are waiting for licenses for 15 screens so that they can operate commercially soon.
- The other 151 are in the different stages of opening procedures and will soon be in their final stage and become functional.
It is stated that in the financial year 2023, they have together worked on making 168 new screens functional spread throughout 30 cinema houses in that place.
The birth of PVR INOX:
- PVR and INOX were separate multiplex giants competing with each other.
- The decision to merge the companies was for better business. In February 2023, the merger was finally closed and completed.
- In March, they finally started working as a single merged entity called PVR INOX.
- They combinedly operate more than 1,500 screens in many properties in 109 cities in India. Among these, PVR runs about 871 screens, and INOX runs 675 screens throughout India.
In February 2023, two multiplex chain giants came forward with a merger. INOX and PVR merged their companies and formed the company PVR INOX which has come into active function since March of this year. The merged company operates about 1500 screens in 109 cities of the country. They plan on opening many more firms in the country. However, they have also decided to close down some screens. The reasoning is discussed in the article above.