Cinepolis' Plan for 1,000 Screens in India Hampered by Mall Shortage

The scarcity of malls in India is obstructing Cinepolis' expansion efforts. The Mexico-based cinema chain, which became the first international showman in India when it was introduced in 2009, set a goal of opening 1,000 screens within a decade. This year, the company planned to introduce 80 new screens nationwide with a Rs 280 crore self-funded expansion plan. Currently, Cinepolis has started preparations for 50 of these screens.

“We no longer have that (1,000-screen) goal,” said Devang Sampat, managing director of Cinepolis India, in an interview. “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 noted that Cinepolis could achieve its goals if mall owners and licensing authorities stick to their schedules. In 2024, the company added 11 screens in Hyderabad, one each in Jaipur, Gurugram, and Delhi, and is also progressing with several projects in Gujarat.

For Cinepolis, expansion isn't restricted to Tier-I, -II, or -III cities. "The broader reality is that India remains significantly underscreened compared to more developed markets," Sampat explained. He pointed out that although India is evolving, not all regions exhibit the same enthusiasm for moviegoing. Despite these hurdles, Cinepolis India is experiencing growth, with overall footfall anticipated to increase by 15 percent compared to pre-pandemic levels. However, this growth is uneven, with many areas currently experiencing more lows than highs, as Sampat noted.

Cinepolis India’s revenue is spread across different sources, with 65 percent coming from average ticket prices (ATP) and spend per head (SpH). For food and beverage (F&B), ATP and SpH make up 50 percent of the revenue. This indicates that for every Rs 100 spent on tickets, customers also spend Rs 50 on F&B.

Overall, Cinepolis’ revenue is composed of 10 percent from advertising, 30 percent from food and beverages (F&B), and 60 percent from the box office. Sampat sees significant potential in the F&B sector, describing it as “not a hunting business, but a farming business.” He observed a change in consumer behavior, with many customers now planning their meals around their cinema outings, thanks to the expanding range of options beyond traditional popcorn and soft drinks.

“We’ve already seen that 85 percent of moviegoers have returned to cinemas. Now, we just need to increase their frequency, and that’s what we’re focusing on,” he added.