India’s multiplex giant is accelerating its expansion strategy, bringing franchise partnerships, developer-funded cinemas and smaller-city markets into focus.
India’s cinema exhibition industry is entering an interesting phase of expansion, and PVR INOX is preparing to take a bigger share of the opportunity.
PVR INOX, India’s largest multiplex operator, plans to add 150–175 new screens annually from FY28, significantly increasing its expansion pace. The company expects most of these additions to come through asset-light franchise partnerships and developer-funded models, signalling a strategic shift towards capital-efficient growth.
The announcement, shared by CFO Gaurav Sharma in an interview with ETCFO on November 2, 2026, highlights the company’s confidence in India’s underpenetrated cinema market and its ambition to strengthen its presence across metropolitan and emerging markets.
From Traditional Multiplexes to an Asset-Light Growth Strategy
Traditionally, expanding a multiplex business required substantial capital investment in property development, interiors, projection systems, sound technology and operational infrastructure.
PVR INOX is now increasingly adopting an asset-light approach, allowing franchise partners and developers to contribute towards the infrastructure investment while the company leverages its brand, operational expertise and established cinema ecosystem.
Under its franchise model, the franchisee owns and develops the cinema, while PVR INOX manages its operations using its branding, systems and processes. The company earns a management fee through a revenue-sharing arrangement.
This approach offers an opportunity to expand the cinema network without bearing the entire financial burden of setting up every new property.
Of its approximately 1,800 screens, around 71–72 were franchise-operated at the time of the CFO’s interview, indicating considerable scope for this model to contribute to future expansion.
SMART Cinemas: Taking Multiplex Experiences Beyond Metropolitan Cities
One of the most interesting developments in PVR INOX’s expansion strategy is its SMART Cinema format.
The company is looking beyond established metropolitan markets and identifying opportunities in Tier 3 and Tier 4 cities, where organised multiplex infrastructure remains relatively limited.
SMART Cinemas are designed around a more affordable operating structure, with lower infrastructure investment, leaner operating expenses and ticket pricing suited to local purchasing power.
The format aims to retain essential cinema experiences, including comfortable seating, quality projection and sound systems, while adapting the overall cost structure to smaller markets.
PVR INOX sees an opportunity for approximately 800–1,000 SMART Cinema screens over the next five years.
This is particularly significant for emerging cities where audiences have a strong interest in cinema but may have limited access to organised multiplex facilities.
South India Emerges as a Key Expansion Destination
Geographical expansion is another important element of the company’s strategy.
According to the CFO, approximately 35–40% of new screens are expected to come from South India.
Karnataka and Kerala are among the promising markets, while additional expansion is being considered in Coimbatore, Puducherry, Hyderabad and Andhra Pradesh.
South India offers an interesting opportunity because regional cinema has a strong consumer following, while several markets continue to have a substantial presence of traditional single-screen theatres.
For developers and investors, this creates an opportunity to explore organised cinema infrastructure in emerging urban centres.
What Makes the Franchise Model Attractive?
The biggest advantage of the asset-light franchise approach is the distribution of capital investment and operational responsibilities.
Rather than investing its own capital in every property, PVR INOX can leverage partnerships with developers and franchise investors.
The model also allows the company to retain operational control and maintain consistency in customer experience.
For potential franchise partners, the attraction lies in associating with an established cinema brand while benefiting from its operational systems, programming capabilities, technology and market presence.
However, this is not a conventional low-investment retail franchise. Cinema development requires substantial capital, suitable real estate, regulatory compliance, infrastructure and careful assessment of local demand.
Investors should evaluate project-specific economics, revenue-sharing arrangements, operating costs and expected payback before committing capital.
What Should Potential Franchise Investors Look At?
The proposed expansion creates several opportunities for different categories of investors.
1. Real Estate Developers
Shopping mall developers and commercial property owners can explore cinema infrastructure as an anchor entertainment destination that may increase footfall and improve the overall attractiveness of their developments.
2. High-Net-Worth Investors
Investors with substantial capital and the ability to develop commercial properties may explore partnerships under suitable franchise or developer-funded structures.
3. Tier 2, Tier 3 and Tier 4 City Entrepreneurs
Entrepreneurs with strong local market knowledge and access to suitable commercial real estate may find opportunities in emerging cinema markets.
4. Commercial Property Owners
Owners of strategically located properties can evaluate whether their assets meet the location, infrastructure and catchment requirements of organised cinema operators.
The Bigger Picture: Is India’s Cinema Market Ready for Expansion?
India has significant untapped potential in organised cinema infrastructure.
PVR INOX management has highlighted the country’s relatively low screen penetration compared with major international markets.
With an existing network of nearly 1,800 screens, the company is positioning itself to capture a larger share of this opportunity through a combination of premium multiplexes, asset-light properties and SMART Cinemas.
The expansion strategy also reflects an important shift in the Indian franchise industry: established businesses are increasingly exploring partnership-driven models to expand their geographical footprint while maintaining operational standards.
The future of cinema expansion may not depend entirely on building larger multiplexes in metropolitan cities. It could increasingly involve smaller, strategically located cinemas in emerging markets.
FranchiseBytesBySG Perspective
PVR INOX’s expansion strategy represents an interesting case study in the evolution of franchise-led business models in India.
What makes this development particularly noteworthy is the combination of three elements: an established national brand, a capital-efficient expansion strategy and an underserved market opportunity.
For the franchise industry, this demonstrates that franchising is no longer limited to conventional sectors such as food, beverages, education and retail.
Entertainment infrastructure is also emerging as an interesting avenue for partnership-led expansion.
However, the success of this model will ultimately depend on location selection, cinema occupancy, regional film performance, food and beverage revenue, operating efficiency and the ability to maintain consistent customer experiences.
The big question is no longer whether multiplexes can expand beyond metros. It is how effectively established cinema brands can build sustainable business models in India’s emerging cities.
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Disclaimer: This article is for industry information and business analysis. It does not constitute an offer of a PVR INOX franchise or an assurance of investment returns.
