As India’s theatrical exhibition industry recalibrates after the pandemic and the OTT boom, Ajay Devgn-backed Devgn CineX is placing a sharp bet on premiumisation. The company, formerly called NY Cinemas, is scaling up with a clear thesis: urban consumers are willing to pay more for elevated, out-of-home experiences.

In an interview with Fortune India, Kumar Mangat Pathak, co-founder of Devgn CineX and chairman of Panorama Studios, outlines the company’s expansion roadmap, the economics of premium cinema, and why India’s under-screened market presents a long runway for growth.

Scaling with a value-first approach

Devgn CineX is targeting 250 screens by 2030, with a focus on scaling both reach and quality. “The idea is not just to scale up—it is to scale smartly,” says Pathak.

The strategy involves maintaining a presence in emerging markets while expanding into metro cities such as Mumbai, Hyderabad, and Bengaluru. This balanced approach allows the company to cater to both value-conscious consumers in Tier II and III markets, and luxury, experience-driven audiences in metros.

Within metros, the focus is on affluent micro-markets where higher consumer spending enables stronger per-screen revenues. “These locations enable better pricing, curated F&B, and immersive formats,” he explains.

Betting on premiumisation amid uneven demand

At a time when cinema-going is still not a consistent habit and Bollywood continues to deliver intermittent hits, the company is betting on a shift from volume-led growth to value-led expansion.

“The focus is not just on increasing screen count, but on building high-quality, experience-led cinemas,” says Pathak. “The approach is not anchored in short-term returns. Instead, the priority is to consistently deliver a premium experience, which will increase footfall and repeat patronage to naturally drive returns within 4–5 years.”

From a revenue standpoint, the model is also expanding beyond traditional streams. “While traditional streams such as box office, F&B, and on-screen advertising remain integral, the scope is being consciously broadened,” he adds, pointing to private screenings, celebrations, and corporate events.

This approach reduces dependence on the volatility of film content cycles while increasing per-customer spend through premium pricing and experience-led offerings.

Rethinking unit economics beyond box office

Premium cinema requires significant upfront investment, but the company is taking a long-term view on returns.

“This business is not being built for short-term gains. The focus is on delivering consistent quality, which leads to repeat footfalls,” says Pathak. Returns are typically expected over a four- to five-year horizon.

The revenue mix is also evolving beyond traditional streams. “F&B is becoming a significant contributor, especially with curated, gourmet offerings,” he notes. The company’s extensive and thoughtfully designed F&B portfolio is expected to play a larger role in overall revenues.

Additionally, private screenings, corporate events, and celebrations are being leveraged to diversify revenue streams and improve overall unit economics, creating a more experience-led monetisation model.

Experience as the new differentiator

The company views OTT platforms as complementary rather than competitive. “OTT offers convenience, while theatres offer scale, immersion, and a shared social experience,” says Pathak.

Post-pandemic, consumers have become more selective but are willing to step out for high-quality experiences. “If the experience is compelling enough, audiences are willing to come to theatres,” he adds. Theatrical viewing continues to deliver larger-than-life, shared moments that cannot be replicated at home.

India also remains under-screened compared to markets like the US and China, indicating significant growth potential, particularly in markets ready for upgraded experiences.

There is a clear shift towards experience-driven consumption, particularly among urban audiences. “Consumers are prioritising quality over frequency,” says Pathak. Today’s audiences are more exposed to global standards of entertainment and hospitality, pushing cinema operators to continuously innovate across technology, comfort, and service.

“It is no longer just about the film—it is about the overall outing,” he says, with premium seating, immersive formats, and gourmet F&B becoming increasingly important.

Thane as a test case for the strategy

Its latest launch in Thane—positioned as a luxury multiplex with immersive technology and gourmet food—reflects this strategy in action.

The journey began in Tier II and III markets, where there was strong acceptance of the differentiated cinema experience and F&B offerings. “That gave the confidence to expand into larger markets,” says Pathak.

Thane, particularly Hiranandani Estate, stood out as an affluent, well-planned residential hub with a discerning, experience-first audience whose expectations have evolved beyond just watching a film to seeking a complete, elevated outing. While multiplexes exist in the catchment, there remains a clear gap in elevated cinema experiences, particularly those combining premium viewing with extensive gourmet F&B options.

“Consumers here are exposed to global standards of entertainment and hospitality but often find local offerings lacking,” he notes, making Thane a strategic choice.

Technology, comfort, and pricing

The focus is on redefining the movie-going experience through technology, comfort, and service. At the Thane multiplex, ButtKicker motion seat technology has been introduced for the first time in India, allowing audiences to physically feel on-screen action and enhancing immersion far beyond traditional viewing.

The property also includes Amor, a luxury all-recliner auditorium with private lounges, dedicated service, private washrooms, and exclusive F&B areas, designed to deliver a seamless, end-to-end premium experience. Seat-based ordering systems allow guests to order food directly from their seats, enhancing convenience and service personalisation.

“The pricing strategy is aligned with the market segment and the premium experience provided by Devgn CineX,” says Pathak.

Expansion roadmap and partnerships

The company is now entering a phase of accelerated growth, with multiple projects in the pipeline. “Megaplex formats are coming up in cities like Hyderabad and Bengaluru,” he says. Strategic partnerships with developers such as House of Hiranandani and Elan Group are helping secure marquee locations that cater to strong, lifestyle-driven catchments.

On the technology front, advanced formats like 4DX, MX4D, and ScreenX are being explored as part of a broader push towards more immersive, multi-sensory viewing experiences. “The vision is to build Devgn CineX into a luxury cinema brand that combines scale with continuous innovation,” Pathak adds.

The larger industry shift

Devgn CineX’s strategy reflects a broader shift in India’s exhibition industry—from volume-led growth to value-led expansion. By targeting affluent micro-markets and layering multiple revenue streams beyond ticket sales, the company is effectively insulating itself from the unpredictability of box office performance—even as theatrical consumption remains uneven.

In an under-screened yet increasingly experience-driven market, the bet is clear: the future of cinemas may depend less on how many people walk in, and more on how much each visit is worth.