PVR to pump in 200 cr in tier II

New Delhi, Sep 19: Leading cinema exhibitor PVR Ltd today forayed into tier II and tier III cities with the launch of its no-frill cinema -- PVR Talkies -- and announced an investment of Rs 200 crore to open 200 such screens in the next three years.

The company will initially start off with 50 screens and gradually expand it to 200 PVR Talkies spread across 70 cities in 13 states, including Maharashtra, Madhya Pradesh and Uttar Pradesh in the first phase of expansion, PVR Ltd CMD Ajay Bijli told reporters here.

PVR Talkies -- The People's Cinema -- will first kick-start in Aurangabad and Latur with three screens each by next week, taking the total PVR screen count to 76 across the nation.

''Movie-going experience can be improved in the smaller towns.

The appetite to watch movies is there and that's where we see the growth potential,'' Mr Bijli said.

PVR Ltd has invested about Rs 80 lakh to Rs 1.2 crore per screen in its low-cost multiplexes and has deployed digital technology in PVR Talkies, PVR Ltd CEO Ashish Shukla said.

With an aim to resurrect the cinema experience in smaller towns the movie tickets have been priced between Rs 40 and Rs 60, much less than what is charged in PVR Cinemas in the bigger cities like Delhi, which alone counts for 30 PVR screens.

The company expects operating margins for PVR Talkies to be on the same level as that of PVR Cinema. ''The capital costs for PVR Talkies will be lower and so will the revenues. The balance will be maintained,'' PVR CMD added.

UNI