IAPM

INDIAN ECONOMY
According to a report - Indian economy is seventh largest in the world by its GDP
and third largest by purchasing power parity (PPP). India is known to be one of
the G-20 major economies and one of the member of BRICS, a developing
economy among the top 20 global traders according to the WTO.
According to the Indian Finance Ministry the annual growth rate of the Indian
economy is projected to have increased to 7.4% in 2014-15 as compared with
6.9% in the fiscal year 2013-14. In an annual report, the IMF forecast that the
Indian Economy would grow by 7.5% in the 2015-16 fiscal year starting on April
1, 2015, up from 7.2% (201415).
India was the 19th-largest merchandise and the 6th largest services exporter in
the world in 2013; it imported a total of $616.7 billion worth of merchandise and
services in 2013, as the 12th-largest merchandise and 7th largest services
importer. The agricultural sector is the largest employer in India's economy but
contributes a declining share of its GDP (13.7% in 2012-13). Its manufacturing
industry has held a constant share of its economic contribution, while the fastestgrowing part of the economy has been its services sector which includes,
among others, the construction, telecommunications, software and information
technologies, infrastructure, tourism, education, health care, travel, trade, and
banking industries.
The data released by India's statistics office on May 29, 2015 showed gross
domestic product (GDP) rose 7.5% in January-March 2015 compared with 6.7%
after a downward revision from 7.5% in the October quarter, signalling a
slight pickup. This comes as the US said on Friday that its GDP contracted 0.7%
owing to shipping delays, dollar dominance and a harsh cold season.
The January-March quarter growth is ahead of 7% recorded by China, in line with
independent forecasts that India is set to take on the man of fastest-growing
large economy in the current fiscal. China's economy expanded 7.4% in the 2014
calendar year.
"There is a huge scope with all the steps the government has taken and will take
in the course of the year. Our potential to grow into a higher league is certainly
there," FM Arun Jaitley said, adding the economy had been held back by the
agriculture sector because of a poor monsoon last year, calling for greater

investment in irrigation. The weather office has said this year's monsoon may
also be rain-deficient.

The post independence-era Indian economy (from 1947 to 1991) was a mixed
economy with an inward-looking, centrally planned, interventionist policies and
import-substituting economic model that failed to take advantage of the post-war
expansion of trade and that nationalized many sectors of its economy India's
share of global trade fell from 1.3% in 1953 to 0.5% in 1983.This model
contributed to widespread inefficiencies and corruption, and it was poorly
implemented.
After a fiscal crisis in 1991, India has increasingly adopted free-market principles
and liberalised its economy to international trade. These reforms were started by
former Finance minister Manmohan Singh under the guidance of Prime Minister P.
V. Narasimha Rao. They eliminated much of Licence Raj, a pre- and post-British
era mechanism of strict government controls on setting up new industry.
Following these economic reforms, and a strong focus on developing national
infrastructure such as the Golden Quadrilateral project by former Prime
Minister Atal Bihari Vajpayee, the country's economic growth progressed at a
rapid pace, with relatively large increases in per-capita incomes. It is believed
that Mumbai, the south western state of Maharashtra is being contributed
highest towards Indias GDP. While Bihar is considered among its poorest states
in terms of GNI per capita. Mumbai, the capital of Maharashtra is known as the
trading and financial capital of India.

Multiplexes in India
In India, the mushrooming of multiplexes since the mid-90s has changed the
dynamics of Indian cinema. India's first multiplex was Maris complex with five
screens built around 80's in Tiruchirapalli, Tamilnadu. There have been concerns
over high ticket prices, and the phenomena was restricted to larger cities, but
Indian cinema chains such as INOX, PVR, SPI Cinemas, CineMAX and Satyam

Cineplexs have been able to make in roads into tier II and III cities in the world's
largest film viewing industry. The largest multiplex in India is the 16-screen
multiplex Mayajaal in Chennai. On the revenue front, the latter gets 70 per cent
of its income from ticket sales, 20 per cent food and beverages (F&B) and 10 per
cent from ads. Both F&B and in-cinema advertising make multiplexes profitable.
India today is home to 2050 multiplex screens across the country. Compare this
to the over 40,000 screens in the US and China has 20,000 you understand just
how awful the number of nine screens per million citizens. This of course means
2 things:
a. A deluge of multiplex operators and existing players strengthening their
positions in spite of a stillness in the industry currently
b. Severe pressure on the current resources of the existing multiplexes
sometimes resulting in compromised movie going experiences inspite of a fairly
high price paid.
At the beginning of 2014, the four major players in the multiple-screen theatres
business were PVR (408 screens), Inox (296), Big Cinemas (254)
and Cinepolis(100). By the end of the year, while PVR and Inox held on to their
top ranks, Kerala-based Carnival Cinemas had cruised its way to the third spot,
having added nearly 260 screens after acquiring Anil Ambani's Big Cinemas and
HDIL's Broadway Cinema. And though Cinepolis too had bought out Subhash
Chandra's Fun Cinemas, it had to be content at a place below Carnival.
Current major pan India multiplex operators:

PVR Cinemas
Big Cinemas
Carnival
Fame Cinemas
Inox Multiplex
Cinemax
Fun Cinemas

Why multiplex is the future of Indian market

Rising Urbanization and Discretionary Spending
Changing demographic profiles in India point to a bright future for consumptionoriented industries. Rapid urbanization, changing lifestyles and rising
discretionary spending should translate into robust growth in consumption-driven
industries, including multiplexes.
Low Penetration of Movie Screens in India
India only has nine screens per million population, vis--vis 115 in the U.S., and
thirty-eight in Europe. Multiplexes will have a higher share of total number of
screens in India going forward, as more multiplex properties open and singlescreen cinemas gradually go out of business.
Robust Content Pipeline
The number of Hindi movies exceeding revenues of INR1bn moved up from just
one in 2008, to 16 in 2015. Over the next few months, a number of big-budget
movies from the Hindi film industry (Bollywood) and from Hollywood, are getting
released, leading to expectations of better financial performance.
Growing Share of 3D, Imax Screen Revenues
The penetration rate of 3D and Imax screens is very low in India currently. As
these grow, so will ATPs, revenues and profitability. Recent Hindi action
blockbuster, Dhoom III, was the first Indian film to be released in the Imax
format. Ticket rates for Dhoom III were in the range of INR600-900 at Imax
screens, which is significantly higher than rates prevalent at ordinary multiplexes
(INR250-500). An increasing number of movies are also being released in the 3D
format, with higher ATPs than for non-3D movies.
Fiscal Incentives

Currently, multiplex screens in India attract entertainment tax levies in the 2067-percent range, depending on the states in which they operate. However, the
proposed Goods and Service Tax (GST), as applicable to multiplex screens, if
capped at 16 percent by the Government, could reduce the incidence of tax on
the industry.

Innovation pays
Now, over a century old, the Indian film industry is worth Rs. 13,000 crore. Nearly
30 films across 10 different languages are released every week. Experts point
out that an estimated 3.5 billion tickets are sold annually and an average Indian
visits the theatre thrice every year. It has also built up a great eco-system for
brands to interact with audiences.
In-cinema advertising refers to on-screen and off-screen branding that
consumers see in theatres. "Many mainstream brands today are using in-cinema
advertising and have upped spends after realising the impact." In the on-screen
space, a brand can run the traditional 30-, 45- or 60 second promos or 10-second
static slides giving information. In the off-screen space, there is a mind-boggling
variety of options ranging from seats, audi name(or door), lobby, wall, floor, box
office, security check point, popcorn counter, lift, kiosk, product display,
staircase, washroom, ticket jackets, interactive zones or kiosks, poster box and
sampling. Piramal Healthcare partnered with Big Cinemas across 100 screens
and placed the I-Sure (an ovulation test kit) communication in women's
washrooms. Sachin Rajpal, general manager, marketing, consumer products,
Piramal Enterprises, says, "The dialogue between the brand and the consumer
happened very well.

PVR Cinemas
PVR Limited is an India-based company engaged in the business of film
exhibition, distribution and production. The company also earns revenue from inhouse advertisement, bowling and gaming alley and restaurant business. It
operates a cinema circuit comprising of 454 screens in 102 properties in 43 cities
pan India. The Companys subsidiaries include PVR Pictures Limited and PVR
Leisure Limited.
The company was incorporated on April 26, 1995 under the companies Act as
Priya Village Roadshow Limited and obtained a certificate on commencement of
business on December 4, 1995. On June 28, 2002 the name of our company was
changed from priya village roadshow limited to PVR limited. The company also
changed their registered office within the same state 50, West Regal Building,

CP, New Delhi 110001 to 61, Basant Lok, Vasant Vihar, New Delhi 110057. The
change in registered office has been approved by resolution of the company
Board on August 5, 2005.

MAJOR EVENTS
In November, 1994 joint venture agreement executed between village roadshow
limited, Australia and PEPL.
April 1995, the company was incorporated as a joint venture between PVR and
PEPL.
In February, 1996 1,199,300 equity shares of the company were issued.
In June, 1997 the company opened Indias first Multiplex Cinema PVR in saket,
New Delhi.
January, 2002 commenced single-screen PVR cinema at Vasant Vihar, New Delhi.
August, 2001 opened a four- screen Multiplex in PVR Naraina in New Delhi.
In November, 2002 PEPL acquired the entire share holding held by PVR.
From 2002 till 2005 the company opened n numbers of multiplex.
In March 2005 the company issue optionally convertible debenture to WITEC and
were converted into equity shares of the company.
2005- Fix its IPO at Rs 225.
2008- New director was appointed.
2009- PVR merged with sunrise infotainment pvt ltd a 100% subsidiary of the
company with PVR ltd.
PVR acquires DLFs DT cinemas for Rs 60 cr.
2010- opened multiplex in UP.
PVR mergers with Liesure world private limited.
2011- Imax and PVR signs four theatre deal in India

SOURCES
http://in.reuters.com/finance/stocks/overview?symbol=PVRL.BO
http://economictimes.indiatimes.com/pvr-ltd/infocompanyhistory/companyid16320.cms
https://monitorplex.wordpress.com/about/