Multiplex chain PVR Inox is seeking licences to serve alcohol at additional high-end properties in select cities such as Gurugram and Bengaluru, according to two individuals familiar with the matter.
The move is aimed at countering dwindling footfalls in theatres. While patrons are unlikely to be allowed to carry drinks into auditoriums, they will be able to enjoy alcoholic beverages in the lounge areas before or after watching a film at luxury formats such as Director's Cut.
The initiative is expected to drive revenue by enhancing the overall movie-going experience, even if few films manage to draw large audiences. As per Livemint, PVR Inox declined to comment on the development.
Currently, the company serves liquor in the lounges, seating areas, and live music zones of premium properties such as Director's Cut in New Delhi and Maison Inox in Mumbai. These zones are adjacent to the cinema auditoriums but are not connected to them.
As per the Cinematograph Act, liquor is prohibited inside movie halls.
"The new move would be limited to high-end properties in metros. By keeping prices high, as is anyway the case with F&B in cinemas, the chain would be able to filter out lower socio-economic segments or unruly elements," one of the individuals told Livemint.
The second person added that PVR Inox hopes to attract a new set of customers - those who may otherwise have to choose between watching a film or going out for a drink. With the rise of high-quality content available for home viewing, industry experts foresee cinemas evolving into up-market, premium spaces that blend top-notch food, drinks, lounge experiences, and superior audio-visual technology. In such a scenario, the movie itself may no longer be the central attraction.
To create a noticeable contrast between home and theatrical experiences, PVR Inox is making significant investments in luxury cinemas and gourmet food offerings. The company has said that luxury formats will eventually make up 20% of its overall screen inventory.
"The endeavour is to expand this as it provides an attractive opportunity to increase SPH (spend per head)," said Abneesh Roy, executive director (research) at Nuvama Institutional Equities. "PVR has been trying to augment revenue streams in the past few years. Alcohol is a state subject, therefore the requirements for getting a liquor licence is different for different states." He added that other considerations include the financial implications of obtaining and renewing licences, which can be prohibitively expensive in certain regions.
The move comes at a time when box office performance remains underwhelming. Collections from Hindi films, including dubbed versions of South Indian movies, fell to Rs 4,679 crore in 2024 from Rs 5,380 crore the previous year, according to the Ormax Box Office Report 2024. Footfalls dropped to 883 million, lower than the past two years and still short of pre-pandemic figures.
Despite these challenges, PVR Inox's profit rose 3.9% year-on-year to Rs 68.1 crore in the third quarter of FY25, as per the company's investor presentation dated February 6. Revenue from food and beverages climbed to Rs 520.9 crore - about 30% of the total revenue of Rs 1,738 crore for the quarter. Ticket sales increased by 5.8% to Rs 879.1 crore.
