PVR-INOX to open single-screen cinemas in Tier-3 cities at subsidised prices.

PVR INOX is set to expand into tier-3 markets with the launch of a chain of single-screen cinemas, branded as "smart screens", as the country's largest multiplex operator seeks to tap rising demand for movie-going in smaller towns amid slowing growth in metropolitan markets.

The company has identified six to seven non-metropolitan towns for the rollout during the current financial year. Tickets at the new cinemas will be priced 30-35 per cent lower than those in the nearest metro cities to make the offering more accessible to local audiences.

The first smart screen is expected to open in Muzaffarnagar around August 11. This will be followed by launches in Bharatpur, Rampur and Hiralpur in Uttar Pradesh, Hanumangarh in Rajasthan, and two locations in Gujarat.

"The next wave of consumerism and retail boom is coming from tier-3 cities. India remains an under-screened market," Sanjeev Kumar Bijli, Executive Director of PVR INOX Ltd, said.

Bijli said the company identified tier-3 towns as key growth markets after analysing cinema screen density across the country. India currently has around seven cinema screens per million people, significantly lower than about 100 screens per million in the United States and nearly 80 screens per million in China.

He added that leading metropolitan markets such as Mumbai, Bengaluru and Hyderabad are approaching saturation, making expansion into underserved smaller cities a key part of the company's growth strategy.