Abstract

In India, multiplexes gained popularity in the first decade of the 21st century. By November 2009, there were half a dozen big operators in this segment, with each operator having more than 50 screens. Competitive pressures and the need for scaling up also prompted some operators to evaluate other strategic options such as acquisitions and strategic alliances. The case discusses PVR’s deal to acquire the DLF Group’s DT Cinemas in November 2009, which was viewed as one such strategic move. However, the deal was cancelled in February 2010. Notwithstanding this cancellation, competition was expected to intensify in the multiplex industry in India with the entry of foreign players, the expansion and consolidation plans of Indian companies, and innovations in the cinema exhibition business in terms of miniplexes and megaplexes.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evolution and growth prospects for the multiplex industry in India.
• Scope for consolidation and innovation in the Indian cinema exhibition industry.

Keywords

Consolidation in the Indian multiplex industry, Acquisition, Strategic alliance, Organic growth, Miniplexes and megaplexes, Cinema exhibition, Entertainment business, Leisure spots, Box office collections, PVR Ltd, PVR Talkies, DT Cinemas, DLF Group, Real estate, Integrated retail entertainment company