PVR INOX Accelerates Tier II/III Expansion with Franchise Model

Leading cinema exhibitor PVR INOX is accelerating its expansion into India’s Tier II and Tier III cities through a franchise-owned company-operated (FOCO) model. CEO Pramod Arora says the strategy supports the company's goal of delivering “affordable luxury” cinema experiences beyond major metros, while also stimulating local content creation and supporting regional filmmakers.

Under the FOCO model, investors own the cinema properties while PVR INOX manages everything from design and execution to daily operations—enabling cost-efficient expansion. After successfully launching its first FOCO cinema in Gwalior last year, the company recently opened a 5-screen multiplex in Raipur and plans further expansion in underserved regions such as Shillong, Gangtok, and Siliguri.

Arora noted that 92% of industry revenue comes from Indian content, underscoring the need for a strong exhibition network to showcase regional stories. Over the past three and a half years, PVR INOX has fine-tuned its FOCO SOPs, cutting execution time by 50%. In Q3, the company signed agreements for 100 new screens, including 31 under FOCO and 69 in other asset-light formats, aligning with rising consumer demand for premium yet accessible cinematic experiences.

News by Rahul Yelligetti.