PVR INOX forays into FOCO model with Raipur launch

PVRINOX on Friday launched its first property under the franchise-owned company-operated (FOCO) model in Raipur's Zora Mall.

- RAGHAV AGGARWAL

Under this model, the development partner or the developer would make the investment towards setting up the theatre, including fitouts and salaries of personnel, and PVR INOX would provide it with the standard operating procedures (SOPs) and other expertise, along with the brand name. In return, the company would take a management fee equivalent to 10% of the theatre's gross revenue and fees for IT infrastructure.

This comes at a time when PVR INOX has been focusing on going asset-light and expanding faster.

It already works with many developers like DLF, where 80% of the investment towards setting up the theatre is made by them, in return for some share of the revenues of the cinema exhibitor.