PVR INOX FOCO Model: Expanding Premium Cinema Experience Beyond Metros

Cinema exhibition giant PVR INOX is making a strategic shift in its growth trajectory by leveraging the PVR INOX FOCO model to rapidly expand beyond metropolitan areas in India. This franchise-owned company operated (FOCO) approach is poised to bring premium cinema experiences to Tier 2 and Tier 3 cities while simultaneously supporting local filmmakers and content creation across the country. According to PVR INOX CEO Pramod Arora, this expansion strategy will not only increase the company’s footprint but also develop crucial cinema infrastructure in underserved regions.

PVR INOX FOCO Model: Strategic Expansion Approach

The PVR INOX FOCO model represents a strategic pivot for India’s largest cinema exhibition company as it looks to accelerate growth while managing capital expenditure efficiently. Under this franchise-owned company operated model, PVR INOX provides expertise in design, development, execution, and day-to-day operations while investors own the physical assets. This approach allows for rapid expansion without the heavy capital investment typically required for new multiplex developments.

“The beginning of the PVR INOX FOCO model happened with Gwalior which opened last year and this one (in Raipur) which is opening in the beginning of this fiscal year. Now we are going to go ballistic on this,” Arora stated, highlighting the company’s commitment to this expansion strategy. The recent opening of a 5-screen multiplex in Raipur marks an important milestone in the rollout of this model.

How the PVR INOX FOCO Model Works

The PVR INOX FOCO model represents a carefully calibrated approach to cinema expansion. According to Arora, the company spent three-and-a-half years perfecting the model before its wider implementation. This preparation period was essential to establish the right standard operating procedures (SOPs) and ensure that the quality associated with the PVR INOX brand would be maintained across all locations, regardless of ownership structure.

Under the PVR INOX FOCO model, investors provide the capital for the physical infrastructure and own the assets, significantly reducing the company’s capital expenditure requirements. PVR INOX contributes its expertise in multiplex design, development, and operations—ensuring that each location maintains the company’s standards for cinema experience. This collaborative approach has enabled the company to reduce execution time by 50 percent, accelerating the pace of expansion while maintaining quality control.

PVR INOX’s Ambitious Expansion Plans

The PVR INOX FOCO model is set to drive significant growth for the cinema chain in the coming years. According to the company’s third-quarter earnings report, PVR INOX has already signed agreements for 100 screens across 22 cinema locations. Of these, 31 screens across 8 cinemas will be developed under the FOCO model, while 69 screens across 14 locations will follow an asset-light approach. This robust pipeline demonstrates the company’s commitment to expanding its footprint across India.

The company’s expansion through the PVR INOX FOCO model is not limited to mainstream markets. Arora highlighted plans to bring the PVR INOX experience to India’s northeastern states, with new screens planned in Shillong, Gangtok, and Siliguri. “While being a part of larger Bharat, they have missed out on the entertainment opportunity,” Arora noted, emphasizing the company’s intention to address this gap in cinema infrastructure.

Bringing Affordable Luxury to Tier 2 and Tier 3 Cities

A key aspect of the PVR INOX FOCO model expansion strategy is the focus on bringing premium cinema experiences to smaller cities through what the company calls “affordable luxury.” This concept aims to deliver experiential cinema that meets evolving consumer expectations for quality entertainment without pricing out the local market. Arora explained that the planned screens will follow this affordable luxury concept to cater to the rising demand from customers for experiential cinema.

“Whenever guests are spending their discretionary money they are looking forward to a component of luxury. Affordable luxury as a concept does not mean that it is going to be expensive. Prices are defined by market dynamics,” Arora explained. Through the PVR INOX FOCO model, the company can introduce these premium experiences to new markets while allowing local economic conditions to define appropriate pricing strategies. This approach ensures that premium cinema experiences become accessible to a broader audience beyond metropolitan centers.

Supporting Local Filmmakers and Regional Cinema

Beyond commercial expansion, the PVR INOX FOCO model serves a larger purpose in developing India’s cinema ecosystem. According to Arora, 92 percent of the industry is dependent on national, regional, local, and hyperlocal content, with only 8 percent of box office value coming from imported films. This reality underscores the importance of developing robust exhibition infrastructure to support domestic content creation across India’s diverse linguistic and cultural landscape.

“This content needs to have a better showcasing. There will be economic benefit to local filmmakers and artists only when there is cinema infrastructure around it,” Arora asserted. The PVR INOX FOCO model facilitates the development of this crucial infrastructure by enabling faster expansion into regions that have historically lacked modern cinema facilities. By providing proper showcasing venues, the model helps ensure that box office revenues flow back to production houses, sustaining the cycle of content creation and supporting local creative industries.

Future Outlook for PVR INOX’s Growth Strategy

The PVR INOX FOCO model represents a significant evolution in the company’s approach to growth and reflects changing dynamics in India’s cinema exhibition industry. By leveraging this model, PVR INOX is positioning itself to capitalize on the untapped potential of smaller cities and towns, where rising disposable incomes and limited entertainment options create favorable conditions for premium cinema experiences.

As the PVR INOX FOCO model continues to mature, industry analysts expect it to become an increasingly important component of the company’s overall growth strategy. The reduction in execution time by 50 percent gives PVR INOX a significant advantage in rapidly expanding its footprint, potentially allowing it to enter markets ahead of competitors. This first-mover advantage, combined with the company’s established brand reputation for quality cinema experiences, positions PVR INOX to capture significant market share in emerging entertainment markets across India.

The success of the PVR INOX FOCO model could ultimately transform how cinema infrastructure is developed throughout India, providing a scalable approach to addressing the country’s significant deficit in screen density compared to other major film markets. For investors, filmmakers, and cinema-goers alike, this expansion strategy promises to create new opportunities while enhancing access to quality entertainment experiences across the nation.