Shortage of malls slows Cinepolis’ plan for 1,000 screens in India
Devang Sampat, managing director, Cinepolis India
The limited availability of malls in India is hindering the expansion plans of Cinepolis, the Mexico-based international movie theatre chain.
Cinepolis, the first international cinema exhibitor in India, entered the market in 2009 with a target of opening 1,000 screens in 10 years. This year, the company planned to open 80 new screens across the country, backed by a Rs 280 crore internally funded expansion. Of these, Cinepolis has initiated fit-outs for 50 screens.
“We no longer have that (1,000-screen) goal,” said Devang Sampat, managing director of Cinepolis India, in an interview with Business Standard. “It was clear we wanted to reach 1,000 screens, but it hasn’t been easy. Currently, we’re at about 450 screens. The cinema business depends heavily on malls, and there simply aren’t enough new malls opening to meet our growth plans. For the near term, we’ll focus on those 80 screens, with hopes of opening 40 or 50 in a year.”
Sampat pointed out that Cinepolis could meet its targets if mall owners and licensing authorities adhere to timelines. In 2024, the company added 11 screens in Hyderabad, one in Jaipur, one in Gurugram, and one in Delhi, alongside several ongoing projects in Gujarat.
For Cinepolis, expansion isn’t limited by Tier-I, -II, or -III cities. “The broader picture is that India is still largely underscreened compared to other mature markets,” Sampat explained. He noted that while India continues to develop, not all regions have an equal appetite for moviegoing.
Despite these challenges, Cinepolis India is seeing growth, with overall footfall expected to rise by 15 per cent compared to pre-pandemic levels. However, this growth has been uneven. “There are peaks and valleys, and right now, there are too many valleys,” Sampat said.
Cinepolis India’s revenue is diversified across various streams, with 65 per cent coming from the average ticket price (ATP) and spend per head (SpH). For food and beverage (F&B), ATP and SpH account for 50 per cent. This means that for every Rs 100 spent on tickets, customers are spending Rs 50 on F&B.
Overall, 10 per cent of Cinepolis’ revenue comes from advertising, 30 per cent from F&B, and 60 per cent from the box office.
Sampat sees huge potential in the F&B segment, describing it as “not a hunting business, but a farming business”. He noted a shift in consumer behaviour, with many customers planning their meals around their cinema visits due to the growing variety of options beyond the usual popcorn and soft drinks.
“We’ve already seen that 85 per cent of moviegoers have returned to cinemas. Now, we just need to increase their frequency, and that’s what we’re focusing on,” he added.
First Published: Sep 08 2024 | 5:46 PM IST