In a conversation with, Devang Sampat, director, strategic initiatives, Cinepolis India, talks about how the Mexican movie theatre chain which currently has 374 screens across the country, aims to capture a bigger market share of the exhibition business by opening 40 screens every year. “Even as the multiplex business has a large potential for growth, the rate has been slow. All players put together are able to open about 150 screens every year,” Sampat said.

Sampat further stated that for Cinepolis, of the total revenue, earnings from box office collections stands at 60%, whereas 25% comes from food and beverage (F&B) segment and the rest 15% comes from advertisements.

Interestingly, the multiplex operator has classified its markets on the basis of catchment areas. According to Sampat, Vasai in Mumbai due to being a small catchment falls under category C of market, as against MG Road in Guwahati, which is a bigger area.

Sampat claims that the multiplex is focusing aggressively on growing the F&B segment to drive more revenue. Recently, Cinepolis, in order to boost its F&B segment, joined hands with chef Saransh Goila. Since then, the multiplex operator claims to have introduced 33% more food items in every theatre.

According to industry estimates, the cost of setting up a screen by a multiplex operator ranges between Rs 2.5 crore to Rs 3.5 crore. For Cinepolis however, that depends on the scale of the multiplex. “We don’t believe in compromising on customer experiences. For example, at our theatres while the concession stand which sells popcorn, nachos, colas is in one corner, the gourmet food stand is on the other side. We do make changes as per the need of every theatre but the investment doesn’t vary more than 15%,” he added.

Even as movie exhibition firms like Cinepolis has increased the number of screens besides adding a variety of other products and services, the explosion of content on video over-the-top (OTT) platforms seems to have had an adverse impact on the business. However, Sampat states that the footfall in the movie theatres has not declined due to OTT platforms, despite shortening of window between a theatrical release and OTT platforms. “In fact it is a matter of finding the right balance between the movie theatres and OTT platforms for the two to co-exist and compliment each other,”he noted.

From launching new screens to improving the F&B segment to how to keep up in a highly competitive market. Watch the entire video to understand Cinepolis’ game plan to succeed in the Indian market.