BUSINESS OVERVIEW
Connplex Cinemas Limited is an entertainment company engaged in the development of theatres, film exhibition and distribution, and revenue sharing from screenings, food & beverage (F&B) sales, and advertising. Operating under the “CONNPLEX” brand and other registered names, the company runs a network of cinemas offering diverse cinematic experiences tailored to varied audience preferences.
The business is anchored on three pillars:
(A) Cinema theatre development,
(B) Film exhibition, distribution, and event hosting, and
(C) Revenue generation from F&B sales and advertisement sharing.
The company also collaborates with filmmakers and studios to distribute films across both physical locations and digital platforms, using strategic marketing to expand reach. In addition to regular screenings, event spaces are offered for corporate functions, private screenings, and community gatherings, strengthening local engagement.
Focusing on Tier 2, 3, and 4 cities, while expanding in Tier 1 metros, Connplex has redefined cinema experiences by introducing a model that combines premium quality, affordability, and convenience. Cinemas are equipped with recliner seating, high-definition projection, and advanced sound systems, offering a boutique-style, upscale environment.
The company has built multiple revenue streams beyond ticket sales, with F&B services playing a central role. A variety of cinema-grade snacks and beverages are offered, including home delivery via third-party partners.
Advertising solutions form another key revenue stream, with on-screen and off-screen advertising options, such as trailers, digital displays, and branded content, offering brands high-impact visibility among captive audiences.
As on June 30, 2025 the Company has 96 employees on payroll including KMP. The Banker to the company is HDFC Bank Limited.
INDUSTRY ANALYSIS
Media and Entertainment Industry Report
The Indian Media and Entertainment (M&E) industry continues to emerge as a sunrise sector within the economy, propelled by a confluence of factors such as affordable high-speed internet, rising disposable incomes, and greater adoption of consumer durables. Unlike many global markets, India’s M&E industry is unique in its high volume consumption and an increasing Average Revenue Per User (ARPU).
The proliferation of digital technologies has made India a global leader in digital adoption, offering M&E companies access to rich, uninterrupted data to understand consumer behavior. In parallel, India has seen accelerated growth in the VFX segment, with the country becoming a global content creation hub.
Despite challenges, the Indian M&E industry has shown strong resilience, entering a phase of accelerated growth driven by surging consumer demand and rising advertising revenues. As per a FICCI-EY report, advertising-to-GDP ratio is projected to rise from 0.38% in 2019 to 0.4% by 2025.
Market Dynamics
The Indian M&E sector is poised for robust expansion, expected to grow by 10.2% in 2024 to reach Rs. 2.55 trillion (US$ 30.8 billion) and further to Rs. 3.08 trillion (US$ 37.2 billion) by 2026 at a 10% CAGR. Advertising revenues are set to touch Rs. 330 billion (US$ 3.98 billion) by 2024, with traditional media still holding a 57% share of total revenues in 2023.
The video OTT market, dominated by platforms like Amazon Prime Video, Netflix, and Disney+ Hotstar, is anticipated to double from US$ 1.8 billion in 2022 to US$ 3.5 billion by 2027. Meanwhile, digital media revenues are projected to hit US$ 10.07 billion in 2024, contributing 38% of India's total advertising industry, rivalling television.
The OTT segment is forecasted to grow at a 14.1% CAGR, reaching Rs. 21,032 crore (US$ 2.55 billion) by 2026, with subscription services rising from 90.5% of revenue in 2021 to 95% by 2026. Furthermore, the AVGC (Animation, Visual Effects, Gaming, and Comics) sector is expected to grow at ~9%, reaching around Rs. 3 lakh crore (US$ 43.93 billion) by 2024.
Despite a decline in PE/VC investments—down 84% year-on-year to US$ 575 million in 2023—the sector remains lucrative. FDI in information and broadcasting stood at US$ 10.87 billion between April 2000 and September 2023, highlighting continued foreign interest.
India’s OTT platforms witnessed a 194% increase in international revenue over two years, indicating global appeal. The OTT audience base now stands at 481.1 million, with 138.2 million paid subscriptions. Meanwhile, Direct-To-Home (DTH) services are forecasted to grow from US$ 6.48 billion in 2023 to US$ 7.59 billion by 2029.
India was ranked 8th globally in advertising spend in 2023, maintaining its position as the fastest-growing among the top 10 ad markets. The mobile gaming market is also expected to reach US$ 7 billion by 2025, with online gaming growing 22%, making it the fourth largest segment in 2023.
In the music industry, revenue is projected to rise from US$ 180 million in 2019 to US$ 445 million by 2026. In FY23, Spotify led music streaming with a 26% market share, up from 11% in FY20. Despite massive streaming volumes—about 460 million streams per day—the paid subscriber base was only 7.5 million, highlighting scope for monetization.
Smart TV penetration is expected to reach 40–50 million units by 2025, with 30% of content consumption comprising gaming, social media, and short-form videos. By then, 600–650 million Indians are projected to consume short videos daily, spending an average of 55–60 minutes per user.
The OTT video services market is expected to grow at an astounding 29.52% CAGR, reaching US$ 5.12 billion by FY26, powered by the rising demand for high-quality online content.
Road Ahead
India's M&E industry is poised for accelerated growth, outpacing the global average, fueled by digital transformation, 5G/6G adoption, and rising income levels. The rural market is emerging as the next frontier, with deeper internet penetration and digital advertising opportunities creating room for untapped expansion.
Filmed Entertainment – Overview
The filmed entertainment segment is undergoing a resurgence. In 2023, 1,796 films were released—11% more than in 2022. Although screen count grew 4% to 9,742, cinema admissions dropped to just over 900 million, reflecting the premium nature of theatrical viewing in India.
Nevertheless, domestic box office revenues hit a record INR 120 billion, powered by a revival in Hindi cinema and ticket price hikes. Notably, 36 films grossed over INR 1 billion, with six Hindi and four South Indian films leading the charts. However, Hollywood collections in India dropped 23%, and viewers increasingly waited for reviews before heading to theaters, amplifying the importance of theatrical experiences and strategic marketing.
Internationally, 339 Indian films were released across 38 countries, generating INR 19 billion, a 19% increase from the previous year.
Broadcast and Digital Rights
Though film viewership on TV rose to 26% of total TV viewership, monetization remained weak, owing to audience fragmentation and lower ratings. Digital rights, however, witnessed robust growth—over 400 films released on digital platforms in 2023, though direct-to-digital releases halved as platforms adjusted pricing. Still, the OTT subscription model continues to drive demand for digital rights.
In-Cinema Advertising
Cinema advertising recovered strongly, growing 50% to INR 7.5 billion, driven by blockbuster releases and limited alternatives to target affluent consumers.
Future Outlook
The filmed entertainment segment is expected to grow at a 7% CAGR to INR 238 billion by 2026. Growth will be led by mass-market Hindi films, wider VFX adoption, and expansion into Tier II and III cities. While broadcast rights may stay muted due to declining Pay TV, CTV homes will rise, shifting the focus to digital monetization.
India’s growing affluence is set to expand the theater-going audience, and the concept of affordable ‘janta cinemas’ will bridge the gap between single screens and multiplexes. Initiatives like smart city developments and the establishment of 24/7 cinemas in transport hubs are likely to enhance footfalls.
Key Themes for Reinvention
Mass escapism remains the most powerful content theme across demographics, pushing producers toward formula-driven, masala films.
The industry is facing a shortage of writers and directors, calling for investments in talent development through writers’ rooms and crowd-sourced storytelling.
Pricing innovations, especially in Tier II and III cities, such as group passes, loyalty cards, or bundled offers, are being explored.
A new content stream tailored for broadcast and FTA audiences is emerging, targeting Tier-III markets with lower budgets and mass appeal themes.
The rise of D2C models and TVOD (Transactional Video on Demand) will grow the sachet model, with pay-per-view and download options gaining traction.
Scaling up will be crucial. The industry is expected to consolidate smaller production houses and attract institutional and global investors, especially in globally appealing content.
BUSINESS STRENGTHS
Premium Experience Backed by Advanced Technology
Connplex Cinemas delivers a distinguished viewing experience with plush recliner seating, immersive surround sound, and high-definition screens. Integration of advanced technologies such as Dolby Atmos and 2K projectors ensures superior audio-visual clarity, enhancing overall customer satisfaction.
Efficient Franchisee Support and Rapid Setup
A robust franchise support system ensures seamless execution from site selection to operations. Modular cinema designs and strategic vendor partnerships enable a fast setup process, accelerating returns and facilitating rapid expansion across varied markets.
Diversified Revenue Model
Revenue generation extends beyond box office collections to include cinema development, food and beverage sales, advertising, and other ancillary income. Regionally tailored F&B offerings contribute significantly to profitability, catering to local tastes and elevating the cinema experience.
Focused Expansion in Emerging Markets
Strategic penetration into Tier 2, 3, and 4 cities enables strong market presence in underserved regions with limited competition. This cost-effective model addresses demand gaps and drives audience engagement in high-growth areas.
Multi-Format Cinema Offerings
A versatile portfolio includes the Express Model for compact urban spaces, the Signature Model for premium experiences, and the Luxuriance Model for high-end, luxury-driven cinema. These formats cater to diverse customer segments while maintaining consistent quality standards.
BUSINESS STRATEGIES
Screen Network Expansion and Content Diversification
The company aims to expand its screen network across urban and Tier 1 to Tier 4 cities to meet growing demand in underserved regions. Alongside mainstream blockbusters, the content portfolio will include regional cinema, foreign films, documentaries, indie films, and live screenings of concerts and sports events—broadening audience reach and generating consistent year-round footfall, including during off-peak periods.
Emphasis on Premium Experience and Innovative Offerings
Focus remains on delivering high-end cinema experiences through investment in cutting-edge technology, enhanced comfort, and personalized services. Expansion of formats will include recliner seating, immersive sound systems like Dolby Atmos, gourmet F&B options, VIP lounges, and custom seating layouts—targeting premium audiences and maximizing per-customer profitability.
Growth of Ancillary Revenue Streams
Strategic emphasis on non-ticket revenues such as food and beverage sales, in-cinema advertising, and private events. Region-specific F&B offerings, corporate rentals, and special occasion bookings will help monetize non-peak hours. Partnerships for product placements and branded activations will further boost ancillary income.
Optimization of Existing Cinemas
Revenue from existing properties will be enhanced through dynamic ticket pricing, F&B upgrades, premium seating, and technology modernization. Customer loyalty programs and alternative events like live sports and gaming will support higher utilization and repeat patronage.
Cost Rationalization and Cash Flow Optimization
Short-term priorities include cost control, liquidity enhancement, and efficient cash flow management. Operational efficiencies will be pursued through vendor renegotiations, sustainable technologies, automation, and disciplined spending. Strengthening cash inflows via pre-booking incentives and favorable project financing will ensure financial resilience and capacity for future investments.
BUSINESS RISK FACTORS & CONCERNS
1. Risk of Screen Damage by Patrons
Cinema screens are critical assets susceptible to damage from patrons, whether intentional (vandalism) or accidental (during crowded events). Despite preventive measures like staff monitoring and surveillance, there is no assurance such incidents can be entirely avoided, potentially leading to financial loss and operational disruptions.
2. Volatility in Food and Beverage Revenue
Food and beverage sales, which carry higher margins than ticket sales, form a significant portion of total revenue. Fluctuations due to shifting consumer preferences, economic downturns, or competition from external food vendors could negatively impact profitability and financial stability.
3. Underutilization During Off-Peak Seasons
Cinemas face reduced occupancy and lower footfall during non-peak seasons, leading to underutilization of space and staff while fixed costs remain constant. This results in operational inefficiencies, increased cost-per-customer, and potential strain on cash flows, affecting profitability and future investments.
4. Impact of Declining Audience Turnout
A consistent audience base is essential for stable revenue. Declines due to market shifts, economic factors, or competition from home entertainment options can reduce income from both ticket sales and concessions. This underperformance raises per-unit costs and may necessitate cost-cutting measures that could further suppress attendance.
Summary :
Connplex Cinemas faces key business risks including screen damage by patrons, volatility in high-margin F&B sales, underutilization during off-peak seasons, and reduced audience turnout. These factors can adversely affect profitability, operational efficiency, and long-term financial stability.
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