Once upon a time…………

Situation back home

- Huge population of cinema exhibition lovers

- Priya Exhibitors Private Ltd. (1974)

- Cinema was not seen as an opportunity

- Just movies, no experience

Breakthroughs abroad

- Acceptance of advances in technology

- Multiplex revolution in western countries

Need meets opportunity.......

AJAY BIJLI MD, Chairman-

PVR

IDEA CONCEPTION

Flashback: The first steps…..

• Market Research - customer opinion to gauge concept acceptability

• segmenting demographically, geographically and

psychographically

• targeting the urban cine-goers

• positioning as a premium cinema

• priced@75 vis-à-vis others@30-35

Birth of PVR….

IDEA DEVELOPMENT

Flashback: 1st Milestone……”PVR”

• Priya Village Roadshow Cinemas- a 60:40 JV between PEPL and Village Roadshow Limited

• India’s first Multiplex

- PVR Anupam in Saket, Delhi(June 1997)

• High class seating, state-of-the-art screens and

audio-visual systems

•Priya Cinemas upgraded to PVR Priya.

IDEA IMPLEMENTATION

2001: two new multiplexes; PVR Pictures came into being

2003: ICICI ventures in Rs. 38 Crs

2004: India's largest multiplex with 11 screens opens in Bangalore

2006: Raises Rs. 120 Cr through an IPO

Flashback: Yeh dil maange more…………

EXPANSION

2007: Entry into movie production with Taare Zameen Par (Aamir Khan

Productions Ltd.)

2008: MOU with Major Cineplex of Thailand to open Bowling alleys, Karaoke lounges and Ice skating

rinks(blu-O, sub zero)

2008: Achieves 101 Screens

2009: Acquires DT Cinemas(DLF)

Flashback: On the move…………

EXPANSION…Contd

Current Year - Enjoying an identity…

• Film Exhibition Industry:PVR Cinemas-Urban AudiencesPVR Premiere-Premium AudiencesPVR Talkies-Tier II and Tier III cities, Price@Rs 40-90

(Differential Pricing )

• Distribution and Production:PVR Pictures (Subsidiary of PVR Ltd)

PRODUCT MIX

Current Year - Enjoying an identity…

26 Cinemas

108 Screens(PVR)

29 Screens (DT)

Source: http://www.pvrcinemas.com/page?page=about

COVERAGE

Intermission---AD time…………

• Catchy Tag lines-as per positioning

• Star visits

• Entertainment (Food joint, Games, Shopping)

• Advertising through Print, Radio & TV media

• Monthly Magazines (Movies First)

• Loyalty Program

PROMOTION

The First move…………

The PVR firsts:

• Accepting credit cards for booking

• ‘Movies First’ – a monthly magazine

• MTicket

• Computerized and online ticketing, telebooking and kiosk booking

• Gold class and Europa Cinema

• Customer Loyalty program

• Movies in digital format PVR at Ambience Mall

• IPO

STRATEGIES

fight sequence – Bring it on…

Porter’s Five Force Analysis

Threat of new entrants

Industry Rivalry

Threat of substitute products

Bargaining power of Suppliers

Bargaining power of consumers

Competitive Pressure on

PVR

Foreign players eyeing the market with technological

advances

Adlabs, INOX, Fun Cinemas etc.

Similar experience at cheaper prices;

better experience at similar prices

Rift with movie productions

Changing customer behavior

Fight Sequence--bring it on…………

STATISTICS

PAT (2009-Q2 in Cr) Locations No. of Screens

PVR 5.21 26 108

Adlabs 2.32 73 186

Cinemax 2.9 14 74

Inox 5.3 28 97

Winner—The Evidence…………

STATISTICS

2006 2007 2008 2009 2010(E) 2011(E)0

50

100

150

200

250

300

350

400

450

500

104.9

155

265.9

352.1 348.4

464.9

5.3 10.6 21.6 8.7 6.1 23.2

Net Sales(in Cr Rs) Linear (Net Sales(in Cr Rs)) Net Profit

Climax……evaluation

SWOT ANALYSIS

Strengths:

• First Mover Advantage• Large Film Distribution network• Convenient locations of Cinemas

Opportunities:

• Increasing demand in Tier 2 & 3 cities• Increase in urban movie goers population • Tie-ups for enhanced entertainment experience• Franchising and Distribution• Diversify film production business

Weaknesses:

• Conflicts with Distributors • Majorly stand alone properties and cinemas in malls

Threats:

• High dependency on Movie success• Distributors• Govt. Regulations• Competitors (Inox, Adlabs etc)• Alternate mediums like DTH, DVDs etc.

Miles to go before I sleep…………

• Attaining the leadership position again by aggressive expansion

• Complete lifestyle entertainment provider

• 250 screens by 2011

• Stepping up the distribution and production business

• Geographic expansion – going south

FUTURE PLANS

And….

The show must go on……

THANK YOU