PVR to invest $100 million in setting up 250 screens in 3 years

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"I am open to all options to raise funds. We will raise this money through equity, internal accruals and debt. The money would be used to expand our production, distribution and exhibition business," PVR Chairman Ajay Bijli said during the launch of "PVR Premiere" in New Delhi - a new brand of its cinemas which will cater to high-end consumers and promises a transformational viewing experience.

According to CEO Pramod Arora, PVR plans to launch about 40 screens under "PVR Premiere" brand name in metros by 2010. Presently, six properties have been selected in Mumbai, Bangalore, Gurgaon and Kolkata for the new concept.

"It is cinema with frills for customers who are not cost conscious," Arora said, adding that 15-20 percent of its revenue would come from these screens.

PVR Premiere’s ticket price would range between Rs.300-750 from weekdays to weekends. Besides plush reclining leather upholstered seats, the company is offering personalised menu, lounge and concierge service to its customers to ensure higher margins for the company.

"The difference in a PVR Cinema and a PVR Premiere is not as much in terms of cost as much as in the experience," national daily Hindustan Times quoted Bijli as saying.

PVR currently operates 95 screens in 24 multiplexes across 14 cities under its brands "PVR Cinemas" and "PVR Talkies."

India's multiplexes were growing at 40 percent annually and this growth would continue for the next five years, Arora said.

PVR Ltd listed its multiplex subsidiary, PVR Limited, in 2005 and raised an estimated Rs.175 crore through an IPO.

The company has reported a 40 percent growth in revenues to Rs.116 crore and 80 percent growth in net profits in the first half of the FY08.