Award-winning actor Ajay Devgn, who has several critically acclaimed and commercially rewarding films to his credit, is an equally successful entrepreneur too. His venture NY Cinemas (abbreviation of the initials of his children — Nysa and Yug), is spreading to many smaller cities. It is already operational with 15 screens across the country and they plan to open 250 screens in the next five years, says Rajeev Sharma, CEO, NY Cinemas. Talking about their future plans, Sharma says, “We have started with north and west India as a focus. This financial year, we are initiating our progression in the southern belt (Karnataka, Andhra Pradesh and Telangana). Next year, we will move to other southern cities.”
Focusing on tier II and tier III cities
The brand has penetrated into tier II and III cities like Hapur, Ghazipur, Raebareli and Surendranagar. They recently launched the first thematic multiplex in Ratlam. Citing their reasons for focusing on these areas, Sharma says, “We believe that there is a dearth of multiplex experience in tier II and III cities. Most of these cities do not have a national or international experience of watching cinema and hence, a multiplex set up will justify the viability and give cinema-goers a better experience.”
Sharma adds that they have started to make theme-based theatres. In Ratlam, they have built a railway station-themed theatre and intend to make more like these, so they are also focusing on tier I cities. “But we want to focus on specific areas. What metro cities have today are places with five-star ambiance, where they go and watch cinema. But they are still lacking in theme-based customer-engaging theatres.
“Today, nobody goes to a theatre 10 minutes before the screening starts because there is no customer engagement. But we have cinema booth, dubbing studio, which will create interest among cinema-goers to visit the place beforehand and experience these properties. We want every property of ours to have its own identity,” Sharma says.
Multiplexe challenges
Like all businesses, the multiplex business is witnessing its share of challenges. Some time back, the Bombay High Court questioned PVR over expensive food sold at its multiplexes. A case challenging the parking charges in malls and multiplexes was also filed recently. Sharma says the biggest challenge for the owners is the real estate rates. “Not that any one of us wants to sell a ticket or pop corn at a high price for the sake of making larger profits. But we have to do it in relation to the real estate value of where the multiplex is situated. Fortunately or unfortunately, the real estate leasing has gone higher in the last few years,” he says, adding, “This is the highest cost apart from the electricity charges. If real estate gets a little more feasible, the dynamics of the business can change and we will see a better footfall at the theatres.”
Number of screens
Over the years, there has been a serious urge among the filmmakers and industry experts in India to increase the number of screens but at the same time, the footfall at the theatres is witnessing a decline. When it comes to screens, India is much behind China, which has 24000 screens. Sharma explains, “For the kind of population we have, the number of screens is very less and there is scope for expansion. I personally believe that when we see development in a particular area, we oversupply things. Everyone wants to be there and get benefits out of it. There are many territories where the number of screens is much more than the footfall that can be justified for that territory.”
He adds that this is happening because people are not looking at exploring the tier II and III cities. “The population and the spending power is in these cities, people are looking to go at secure air-conditioned places where they can spend time with their families. If strategically the expansion plan is worked out and we give such experiences to people which they are deprived of, it would add to the footfall,” says Sharma who has been part of the industry for close to 15 years.
Digital vs movies
The digital medium is slowly spreading across the country. Will it affect the movie business? “I believe that both will co-exist. There is content being made for smaller screens and it’s gaining popularity. But one cannot replicate the experience of blockbuster films like Avengers or Sultan on the small screen. The industry will be happy that more and more content providers will be able to exhibit their content. They were facing problems because of limited screens and many could not see light of the day,” he points out.
Ajay Devgn’s role
Ask Sharma how would he describe the Singham actor’s role in the brand and he says that Ajay is hands-on (laughs). “He is involved in every aspect, especially the ideology, vision, values, designs and creativity come from him. The concept designs for territories get his approvals. We get his expertise in areas where he excels including design, ideology and the creative aspect,” Sharma says and signs off.
