Table of Contents

Overview of the Company........................................................................................................................2

Core Competencies of its product and services offering.........................................................................3
Success factors of Company......................................................................................................................4
Pandemic Crisis of India...........................................................................................................................5
First wave...............................................................................................................................................5
Second Wave..........................................................................................................................................6
Economy of the country............................................................................................................................6
Change/ impact in economy due to pandemic.....................................................................................7
Company’s Financial Health....................................................................................................................7
Recommendation.......................................................................................................................................8
References..................................................................................................................................................9

1
Overview of the Company

Well a theatrical movie experience is one, that even non movie lover would love to acknowledge
once or other in the lifetime. Earlier known as Priya Village Roadshow, it was started in
collaboration between Priya Exhibitors Ltd and Village Roadshow Ltd in 1995 with a 60:40
share. In Saket, New Delhi, the business opened the country's first multiplex theater, the PVR
Anupam, in June 1997. By distributing electronic tickets, they digitized box office operations. In
2002, Village Roadshow Ltd. gave all the shares back and the name was then changed to PVR
Ltd.(“PVR Ltd.,” n.d.)

It was the first to launch 11 screen multiplex, accept credit cards and receive institutional funding
by ICICI. In around 71 cities including India and Sri Lanka the company has covered around 842
screens in 176 cinemas. PVR has a dominance in the marketplace of 32% in the Hollywood
sector and 24% in the Bollywood sector. The goal of PVR Cinemas is to provide customers with
the top movie-going experience. They aimed to be available to audiences at all times and in all
places. The company's objective is mainly to continue to be India's most favored and upscale
entertainment provider and it is easing in it.(Gurjar, 2022)

Founded by Ajay Bijli, PVR Ltd. which is also known as king of multiplex with the revenue of $
440 million has acquired various cinemas like Cinemax India, DT cinemas, SPI Cinemas. It has
it’s headquarter in Gurugram and has been rewarded many awards. Some of the recognition are it
has been top multiplex chain from the year 2016-19, it has also received Retailer of the year
award from 2013-17. (About PVR Cinemas | Founder | Revenue Model | Growth, 2021)

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Core Competencies of its product and services offering
The core activity of PVR Cinemas is the business of movie screenings. Additionally, they work
on the creation and release of movies in India. In addition to ticket booking, PVR also runs
theater advertisements and food and beverage sales. The business produces and sells gourmet
popcorn, a preferred meal from PVR that is offered in their movie theaters, on various airlines,
and even on Indian railways. Additionally, a number of e-commerce websites offer online
ordering for this gourmet popcorn. PVR's V Pristine project provides cleaning services for
residential properties. It provides customer the value for money with the luxurious experience in
the multiplex with friendly staffs and even the safety and priority given to each customers. For
human being satisfaction is the utmost priority and PVR leads in that. The best part is they focus
in design, technology and services. (Jayan, 2019)

It has various diversified products like PVR director’s cut, PVR gold class, PVR premiere, PVR
cinemas.

PVR directors cut provides fine dining and 7 star movie experience.
PVR gold class provides gourmet menu with a live kitchen experience with recliner seats.
PVR premiere provides 7.1 Dolby sound system with premium screens and amazing 3D
experience and it was first to launch it.
PVR cinemas provides wider legroom and comfortable sitting.
It has various competitive advantage in the entertainment industry as the first mover advantage
being the first multiplex in India offering Hindi, English and Regional movies. It has amazing
updated technology as screen of PVR are known as “screen of art” and even the sound
technology of PVR is the most updated ones. It has its screens in various places so it has
amazing location advantages then others. For retaining the customers brand value, ambience and
staffs are really important in which PVR is leading. It also provides extra services like organizing
parties for the customers and even the movie voucher scheme is the extra advantage provided by
PVR.(PVR Cinemas: Business Model & Research Report, n.d.)

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Success factors of Company
From starting from a single screen multiplex to ruling over 71 cities and covering 846 screens
PVR has come a long way with the amazing customer satisfaction experience. As on 2001, when
after the 9/11 attacks his Australian partner Village Roadshow decided to part ways Ajay Bijli
with his dedication and the spirit of not giving up conducted IPO for the first time and raised
about 100 corers. PVR purchased 71.6 percent of SPI Cinemas in order to expand their screen
count. Now after the merger between INOX and PVR promoters of PVR will own 10.62 percent
of the combined company, while those of INOX would own 16.66 percent.

Lots of things have played a crucial and vital role in enhancing PVR's success and increasing
client loyalty and preference of choosing them over others by standing out services. From the
right collaborations with Dolby and IMAX to targeting small cities and winning over its
competitors.(Singal, n.d.)

Price: Price has been a huge benefiting and success factor for PVR as it was the first multiplex.
And being a new concept innovated it achieved maximum gains. They attracted the customers
with amazing experiences using all tangible factors to provide a wholesome movie experience
worth the money. It has different price slabs according to service provided which amazes its
customers.

Place: PVR Ltd. has covered various good locations all around the countries which leads to
success as well. PVR Ltd. has no other distribution mechanism because their service is only
offered through their chains. They don't adhere to any franchisees. It obtain the movies over both
Indian and foreign movie distributors, who operate as an intermediate in the process.

Promotion: Each Friday, PVR as a brand releases print advertisements with the most recent
movie schedules. Press releases are used to inform the audience of any fresh developments.
Therefore, there is a major PR role. In addition, they frequently hold competitions in honor of
current holidays like Valentine's Day, New Year's Eve, etc. and even leading actors from movies
pay visit to the various PVR theaters for premiere events that it hosts.

4
People: As a representative of the PVR family, personal cleanliness and attractiveness are given
the utmost significance. All staff are trained to handle safety risks including accidents, fires,
bomb threats, armed robberies, etc. All trainees are required to complete training in all areas
such as ticket sales, online and offline booking, customer service skills, etc. The company makes
sure there are no gaps for the convenience of the customers. The personnel are immediately
instructed to report any consumer concerns to their bosses. All of the staff members have a very
warm and calming attitude. As a consequence, the audience convey their issue effortlessly.

Physical evidence: Even while customers cannot physically see a service, they can clearly
perceive a number of tangible cues about the service offered such as the facilities,
communication, goals, staff, other customers, price, etc . PVR has the best structure, layout,
interior color scheme, tickets, labels, company logo, etc., all of which assist to establishing a
powerful, consistent corporate identity.

Pandemic Crisis of India

First wave
A cluster of patients in Wuhan, China experienced respiratory sickness, which was submitted to
the WHO on December 31, 2019. On January 12, 2020, the WHO determined that a new
coronavirus was the source of the illness. India initially reported a COVID-19 case in Thrissur,
Kerala, on January 30, 2020. By February 3 of that year, there had been three incidents; all of the
cases involved students who had just returned from Wuhan. Other than this, no appreciable

5
increase in transmissions was seen in February. 22 new cases, including 14 afflicted tourists from
Italy, were announced on March 4th. After several individuals who had visited the impacted
nations in the past and their contacts tested positive, transmissions grew throughout the course of
the month.

In addition to the virus itself, COVID-19 also caused an economic and mental breakdown, which
left hungry and jobless people in developing nations. To combat COVID-19, India imposed a 68-
day, four-phased shutdown from March 24 to May 31.(Coronavirus in India: What to Know -
The New York Times, n.d.)

Second Wave
Numerous deaths in India since February 2021 have exacerbated the socioeconomic devastation
brought on by the new wave of COVID-19. People were left hopeless for hospital beds, life-
saving medications, and oxygen as a result of the sudden rise in cases across the nation. In urban
areas, infections started to decline in May 2021. (Kumar, 2021)Rural regions, however, were still
affected by the second wave. The country has recently been severely impacted by the second
wave, which is spreading quickly. It is thought to become the second-worst pandemic to have hit
the nation in almost a century.(“COVID-19 Pandemic in India,” 2022)

Economy of the country

The economy of India is considered to be a developing market economy. It is considered to be
fifth largest economy by nominal GDP and third largest one as per PPP. A slow down pace was
noticed with the rules changed by implying demonetization and GST. As import and export
plays a key role in supporting terms of the economy of the country , India has free trade
agreements with several nations, including ASEAN, SAFTA, South Korea, Japan, and various
other countries are also been considered or are in the negotiating stage. In 2020, the country had
large trading business with US, China, UAE, Saudi Arabia, Switzerland, Germany, Hong Kong,
Indonesia, South Korea, and Malaysia. In the upcoming years India is expected to grow and

6
achieve the position of being in among the top 3 countries in the world.(“Economy of India,”
2022)

It has a mixed economy. Half of the Indian workers rely on agriculture and the service sector
also plays a vital role in its economy advantage and growth. Being a export hub for software
services the IT outsourcing service market has a great demand. Even the tourism industry is the
advantage to the country.(Services Sector in India, n.d.)

Change/ impact in economy due to pandemic

Being the essential requirement for the nation agriculture sector, pharmaceuticals didn’t suffer
the losses the way like other sectors like tourism industry and all faced. As per the official
information made available by the ministry of statistics and program implementation, the Indian
economy contracted by 7.3% in the April-June quarter during 2021. As per the other sources of
economic times, it saw massive drop in GDP of around 24.44%. Although many people lost their
jobs during the virus outbreak the exact data of information of that is unemployed.(“How Has
Covid-19 Affected India’s Economy?,” n.d.)

Company’s Financial Health

Due to the pandemic many people and company suffered as they lost their jobs and many
companies were shut-down.

The largest operator of multiplex chains, PVR Ltd, announced that its first quarter of 2021
concluded with a combined financial loss of 219.55 crore due to a decline in its business of
movie exhibition due to lockdown. According to PVR in a BSE filing, the business reported a net
loss of Rs 225.73 crores during the April-June quarter last year. PVR spent 417.06 crore rupees
in the first quarter of fiscal year 2021–[Link] evaluated the pandemic's potential effects on their
company, and according to PVR, they don't anticipate any changes to the likelihood of
recovering the valuation of our assets.(World, n.d.)

The company said, "We think the pandemic may have a negative effect on the organization in the
immediate term, but the long-term fundamentals of our industry are still in place, and we do not

7
foresee any major medium- to long-term threats to the business." Investors worried that a rise in
infection rates would reduce theater attendance as individuals would avoid crowded areas like
movie theaters due to concerns about viral transmission. Due to new movie releases and the
blockbuster success of some south Indian films, the cinema industry, which was among the
deadliest sectors last year as a result of the virus outbreak complete shutdown, has managed to
gain some momentum this year. In the first 4 months of 2022, gross box office records reached
about 4,000 crores.(PVR, INOX Leisure Shares Fall 4% on Rising Covid-19 Cases, n.d.)

Recommendation
During Covid-19 various company suffered losses and many people lost their jobs where the
countries were implying complete lockdown to reduce the spreading spree. PVR Ltd. was also
widely affected. Being customer centric service company they should take various precaution
measures. As covid-19 has also lead to weaken the financial strength of people the company can
take some measures like

Providing importance to employees: As spread increases due to physical contact the employees
can be encouraged to stay at home and stay safe by providing income during their sick period.
The best part was PVR provided various care support to its employees from providing
vaccinations, providing foods to the needed one, medical assistance, plasma donors but the
assistance should be taken further.

Introducing new way outs: The halls can run on 50% capacity plus the low contact of staffs with
customers to people by enhancing its electronic ticket sectors and scanning code at the entrance
for the payment .They can even have a separate teams for time to time sanitization and reducing
the shift times. As they host parties and special events for the customers they can even have
private special screenings. It’s not the just pandemic crisis but change and problem are inevitable
so a company should be ready for every circumstances.

Technological Advantages: As the world is growing rapidly in each sector, the IT sector and the
technological advantages of PVR ltd should be increased as although being the first cinema now

8
INOX Leisure is giving cut to cut competition so it has to work on the technological advantages
to stay on lead. It should also focus on the cyber security sectors as the security is of high risk.

New advances: As it has planned to launch the Drive-in -theaters they should launch it to great
customer attracting locations as well, as it creates a separate exclusive feel plus the risk of human
contact is also less. As PVR have different slabs for different customers it can launch its
branches to the small places where people are deprived from such services.

Customer centric: Mainly the country has a great advantage of youth centric population they can
have game’s live streaming and even the sports live launch of the games like cricket which is the
most loved one and has a lots of craze rather than just the movies as during the lockdown period
the movies were not prepared and even a lot of screenings of movies were at halt so it can have
other way alternatives to give safe and entertaining pleasure to its customers. Well the main
problems for many customers are the kids they can’t have the wholesome of the movie
experience as the kids around so they can introduce some kids centric projects as well which can
engage them with proper safety so the parents can watch the movies without being concerned.

Market analysis: The leaders and management teams should analysis the market to know the
probable risk and provide training to its employees beforehand. The leaders should encourage the
employees and treat them as the key persons by considering their suggestions as well which will
help them in the long run and betterment of the organization.

References

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