PVR INOX plans to expand its SMART cinema format into nearly 300 new cities across India [1].

The move signals a strategic pivot toward Tier-III markets, where the company believes there is significant untapped demand for modern movie-going experiences. By targeting these growth towns, the chain aims to diversify its footprint beyond major metropolitan hubs.

Ajay Bijli, Managing Director of PVR INOX, said the expansion begins with the city of Muzaffarpur in the state of Bihar [2, 3]. The company is prioritizing these regions because only three to four percent of its current screens are located in India's growth towns [1].

This expansion focuses on the SMART cinema format, which is designed to cater to the specific economic and demographic needs of smaller cities. The rollout is intended to bridge the gap between high-end urban multiplexes and the underserved audiences in smaller districts.

Industry analysts said that Tier-III cities have seen a rise in disposable income and a growing appetite for branded entertainment. PVR INOX is positioning itself to capture this shift before competitors establish a dominant presence in these regions.

The company's current low penetration in growth towns, representing just a small fraction of its total screen count, indicates that the bulk of its infrastructure has historically remained in Tier-I and Tier-II cities [1]. By scaling into nearly 300 new locations [1], the company seeks to create a more balanced national distribution of its assets.

PVR INOX plans to expand its SMART cinema format into nearly 300 new cities across India

This expansion represents a shift in the Indian cinema landscape, moving away from a reliance on saturated metropolitan markets. By aggressively targeting Tier-III cities, PVR INOX is betting on the urbanization of rural India and the emergence of a new middle class with higher spending power for leisure and entertainment.