PVR INOX has launched a new format called PVR INOX SMART Cinemas to expand into India’s tier III cities, starting with Muzaffarpur. The company said the concept is aimed at bringing its cinema experience to fast-growing smaller markets that are becoming increasingly important for entertainment businesses.

The rollout is being built around a Franchise-Owned, Company-Operated, or FOCO, model. Under this structure, the company can grow its screen network in smaller cities while keeping the expansion more capital efficient than a traditional company-funded approach.

With SMART Cinemas, PVR INOX is positioning itself to tap demand beyond the major metro and tier I locations where multiplex chains have historically been concentrated. The idea is to adapt its brand and exhibition offering for cities that are seeing rising consumer spending and greater appetite for organised entertainment.

The Muzaffarpur launch marks the starting point for this strategy as PVR INOX looks to widen its footprint in smaller urban centres. The move highlights how cinema operators are exploring franchise-led growth models to reach new audiences while managing investment costs more carefully.